Kerala-based South Indian Bank (SIB) has emerged as the largest service provider for the New Pension System (NPS), a social security scheme launched by the Centre and implemented through the Pension Fund Regulatory and Development Authority (PFRDA).
With 105 of its branches designated as the Point of Presence (POP), SIB had become the largest service provider among 21 banks and financial institutions participating in the scheme, an SIB release said in Thrissur on Saturday.
The national launch of SIBs participation was jointly done by PFRDA Chairman D. Swarup and SIB MD and CEO V.A. Joseph in New Delhi recently.
Of the institutions selected by PFRDA, SIB had got the largest Points of Presence – Service Providers, the bank release said.
According to PFRDA, the NPS is a scheme open to employees working in various fields including the unorganised sector. A subscriber could retain the same Permanent Retirement Account Number (PRAN), which would enable the subscriber to continue to contribute to the same account even if he switched job or shifted place of work.
The PFRDA had also decided in principle to come out with a low-cost pension scheme for the poor which would enable a large section of the nearly 28 crore low-income workers in the country such as rickshaw pullers, fishermen, weavers and street hawkers to have a safety net to lean on when they enter the twilight years of their working life.