NPS has 30 lakh private sector subscribers, says PFRDA Chairman; additions happening through fintech platforms like Zerodha, Paytm Money, Banyan Tree

Around 30 lakh people from the non-governmental sector have connected with the National Pension System (NPS), Pension Fund Regulatory and Development Authority (PFRDA) Chairman Supratim Bandyopadhyay has said. 

The 30 lakh private sector subscribers have contributed a corpus of Rs 97,000 cr   

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NPS is a government-sponsored pension scheme where subscribers can contribute regularly in a pension account during their working life. On retirement, the subscribers have the opportunity to withdraw a part of the corpus in a lumpsum and use the remaining corpus to buy an annuity to secure a regular income after retirement.  

The Scheme is regulated by PFRDA. National Pension System Trust (NPST) established by PFRDA is the registered owner of all assets under NPS. 

People are getting connected to NPS products through fintech platforms like Zerodha, PayTM Money, Banyan Tree. 

The process of onboarding has been simplified and over 2.41 lakh new subscribers have been added over the 4.5 month-period in this year. This is higher by 50 per cent as compared to the last year. 

Among other things, Insurance Regulatory and Development Authority of India (IRDAI) has constituted a committee for index-linked products. The products which are linked to inflation could find traction with the investors.    

The NPS investments in equity have retuned income at a CAGR of 12.94 per cent, the Chairman said also highlighting returns from the corporate bonds and government securities. While the former has given returns of 10 per cent, the latter has given 9 per cent returns on the investment.  

- PFRDA Bill could not be passed during the Monsoon session of the parliament. 

 - Amendments made in Point-of-Presence (POP) regulations while giving approval to individual.

- RFP have been issued on minimum guaranteed products and made relaxations in rules  

- 3 companies have expressed interest for minimum guarantee products; time till 12 September 

- One out of the three will be selected for minimum guaranteed products