To provide housing finance options to National Pension System (NPS) subscribers, the pension fund regulator has set up a committee to look into the proposal, a senior executive said today.
The committee will be headed by former MD and CEO of HDFC Life Deepak M Satwalekar. The panel has been given six weeks to submit its report. The first meeting was held on November 19 and the second one is slated for the second week of December, he said.
“We are exploring housing options for NPS subscribers and we have set up a committee to study the proposal,” Pension Fund Regulatory and Development Authority (PFRDA) Whole-time Member for finance, R V Verma, told PTI.
Two most important retirement assets are pensions and housing. There is also a strong synergy between pension fund and housing, he said.
“We are looking at possibility of extending housing loans at affordable terms to NPS subscribers. This will be a win-win for all stakeholders and a big support to the NPS members, apart from giving fillip to the government’s vision of housing for all,” he said.
Verma said the committee has Sanjaya Gupta, MD & CEO of PNB Housing Finance, and Baij Nath, head of retail housing loans and real estate at State Bank of India, and Mukul Asher of Lee Kuan Yew School of Public Policy of the National University of Singapore, as other members.
The committee will examine the desirability/need for offering/facilitating funding for home ownership for the subscribers of the NPS, including direct lending, with special reference to government employees.
The panel will also examine in details the pros and cons of such scheme and implications for the NPS, with particular reference to the impact on pension wealth and the retirement pension amount.
Besides, the committee will analyse the synergies between retirement income and housing in the context of the Indian and global experiences and lessons.