Pension regulator PFRDA is now focused on enhanced outreach to Central PSEs, private corporates as well as NRIs as part of its overall effort to scale up the NPS assets under management (AUM) to atleast ₹12-lakh crore by end March 2024, according to its Chairman Deepak Mohanty.

“We have now written to all the top brass of Central Public sector entities who are yet to onboard into NPS and urged them to join”, Mohanty told businessline in an interview ahead of the NPS Diwas to be celebrated by the regulator on October 1.

October 1 is also the UN designated day for UN International Day for Older people.

Till date, only about 62 of the over 200 COSEs have joined NPS, indicating the huge headroom for NPS growth, noted Mohanty.

Mohanty expressed optimism over NPS assets touching ₹12 lakh crore by end March 2024. As of September 16, NPS assets under management (including APY) touched ₹ 10.22 lakh crore, up 27 percent year-on-year.

Mohanty said that PFRDA is taking steps to bring more corporates and individual citizens on board. “This year we expect atleast 13 lakh new subscribers from both corporates and all citizen categories. Last year we had added a million new subscribers”, he said. As on date, only about 14,000 corporates have joined NPS.

On non-resident Indians, Mohanty sees this segment as one with great potential. “I have had discusdions with SBI Chairman on this and requested him if SBI can play a key role in encouraging their large NRI customer base to join NPS which has several benefits for them even if they return to India”, Mohanty said.

SYSTEMATIC LUMPSUM WITHDAWAL 

Meanwhile, Mohanty confirmed that the much anticipated Systematic Lumpsum Withdrawal (SLW) facility has been operationalised by one of the Central Record Keeping Agencies (CRA)—CAMS.

“The other two CRAs are also expected to implement this in October”, he added.

SLW gives NPS subscribers the flexibility to do systematic withdrawal of their NPS corpus post retirement at monthly, quarterly, half yearly and annual rests.

This flexibility is essentially targeted at non-government sector subscribers — corporate and all citizens model categories, who are seen as the growth driver for NPS assets.

This SLW facility is also significant, given the perceived low annuity returns in the Indian financial system. 

In September last year, the PFRDA had issued an exposure draft and sought stakeholder comments on the introduction of SLW for the benefit of NPS subscribers and facilitate them with smart withdrawal facility.

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