To attract investors to the National Pension Scheme, the Pension Fund Regulatory and Development Authority is planning to introduce an online facility where investors can open their pension account directly through its portal.
“We are set to launch the online on-boarding facility for prospective customers of pension schemes under the NPS,” PFRDA chairman Hemant Contractor told reporters on the sidelines of an insurance summit organised by the industry lobby CII.
“We have also urged the government to offer tax-breaks to pension schemes falling on the lines of other financial products like mutual funds and insurance, to popularise pension products in the unorganised sector,” he said.
PFRDA has sought clarification from the government if the pension products being run by various fund houses and life insurers can be regulated by it.
“We have asked the government to clarify whether we can regulate the pension business being run by mutual fund houses and life insurers because the PFRDA Act empowers us to regulate all kinds of pension business,” Contractor said.
On the pension business being managed by the Employees Provident Fund Organisation (EPFO), he said it is up to the government to decide that who will be regulating it.
Commenting on the progress of NPS, he said the NPS corpus has already crossed R94,000 crore, which includes R7,000 crore from the Atal Pension Yojana.
He further said, “We’ve already opened 6,80,000 accounts under the Atal Pension scheme during the past couple of months and we are looking at taking it to 2 crore by December. Out of these 6,80,000 accounts, 65% subscribers come from urban areas and the rest from the rural areas.”