landing img
Invest

Efforts On To Make NPS Available At All Bank Branches, Post Offices: PFRDA Chairman

The efforts are to increase the penetration of pension schemes by making the NPS products easily available to the public

September 29, 2023
September 29, 2023
Efforts On To Make NPS Available At All Bank Branches

Efforts On To Make NPS Available At All Bank Branches

Advertisement

Top Articles
Regulator PFRDA is working on ways to make the social security scheme National Pension System (NPS) available at all bank branches and post offices, according to its Chairman Deepak Mohanty. Efforts On To Make NPS Available At All Bank Branches is to increase the penetration of pension schemes by making the NPS products easily available to the public.
In an interview to PTI Bhasha, Mohanty said the PFRDA has roped in Regional Rural Banks (RRBs) and banking correspondents for the distribution of the NPS so that people even in villages and small towns will be able to easily avail the benefits of the scheme.
“We are trying to make the NPS easily available to the people through all bank branches and post offices. We have also discussed this matter at the top management levels but ultimately it is up to the banks to take a decision on this matter,” the PFRDA (Pension Fund Regulatory and Development Authority) Chairman said.
Currently, NPS is available in many bank branches.
He also said the aim is to add a total of 13 lakh NPS subscribers from the private sector at corporate and individual levels.
In the last fiscal, the addition was 10 lakh subscribers.
According to official data, the total number of subscribers of the NPS as of September 16, 2023 stood at 1.36 crore, excluding those who have subscribed for NPS Lite. The number of customers under Atal Pension Yojana is 5 crore.
On why pension amount is not fixed under the NPS, Mohanty said, “it is not practical to fix pension for a long time. In some developed countries where the pension fund is 100 per cent or more of the GDP, there is also a problem regarding this”.
However, he said it is certain that the returns from the NPS are very good and people can expect a good corpus in the long run.
In India, all types of pension-related assets, including pension products of EPFO and life insurance, together constitute 16.5 per cent of the GDP. The funds in the NPS and Atal Pension Yojana account for 3.6 per cent of the GDP.
As per the PFRDA, investment in equity under pension schemes has given a return of 12.84 per cent since its inception.
In the case of government employees, returns from the NPS are up to 9.4 per cent.
Mohanty said the commission for selling the NPS is less and that may not be attractive for agents. “But our aim is to keep it a low-cost product so that customers benefit,” he added.
Further, he said the assets under management under the NPS and APY are estimated to reach at least Rs 12 lakh crore in this financial year. Currently, it is at Rs 10.22 lakh crore and APY’s share in the total funds under management is around Rs 35,000 crore.

Advertisement

    Related Articles

    Advertisement

    Advertisement

    Previous Retirement Issues

    • magzine
    • magzine
    • magzine
    • magzine
    All pages of the Website are subject to our terms and conditions and privacy policy. You must not reproduce, duplicate, copy, sell, resell or exploit any material on the Website for any commercial purposes.

    Group Publications

    • magzine
    • magzine
    • magzine
    • magzine