The state-run Bank of India (BoI), has been appointed as the trustee bank by Pension Funds Regulatory and Development Authority (PFRDA) to manage the funds. The bank has already received a sum of Rs 740 crore in March, out of a total sum of Rs 1,800 crore which would be transferred to the trustee bank under the New Pension Scheme (NPS).
As a trustee, the bank will be the custodian bank pension fund managers. The bank?s role is to receive the pension money coming from the centre and then pass it on to the three fund managers which have already been appointed. The fund mangers are SBI, UTI AMC and Life Insurance Corporation of India.
Requesting anonymity, a BoI official told FE that a separate cell has been created by the BoI to manage the pension fund under NPS and 10 officials have already been deployed for the cell.
So far, the bank has entailed two of its branches, the one located at Parliament Street in New Delhi and the other one located at Bandra-Kurla Complex in Mumbai to manage the funds. As a trustee bank, the BoI can utilise the funds for two days as the pension funds transcation is governed under the ?T+2? system.
Moreover, the clearance of funds will take place only the next working day of remittance which will also give a leverage to the trustee bank. The bank will be also service commission, which was yet to be finalised.
National Securities Depository Ltd (NSDL), has been appointed as the CRA (Central Recordkeeping Agency) by the PFRDA
A unique transaction Id will be created by the NSDL in this connection before June 1, when the contribution to the fund begins officially.