14 hours Ago
MUMBAI: Pension Fund Regulatory and Development Authority chairman Deepak Mohanty announced the formation of Association of NPS Intermediaries , a self-regulatory body to promote the pension industry. Modelled on the Association of Mutual Funds in India, the new body will enhance NPS awareness, foster collaboration, contribute to policy innovation, and position NPS as a global benchmark for cost-efficient pension solutions . Mohanty, speaking at the launch event in Mumbai attended by senior executives from SBI, LIC, Axis Bank, and EPFO, said: "NPS is the lowest-cost pension scheme in the world.
We are members of the International Organisation of Pension Supervisors but when they prepare a chart of pension fund managers, NPS is not shown with a footnote that it is an outlier." Mohanty said NPS assets under management stood at Rs 14 lakh crore and could exceed Rs 15 lakh crore by year-end, with participation from eight crore accounts. Despite this, challenges like low public awareness, limited access for the informal workforce, cultural resistance to long-term savings, and low pension penetration remain.
M Nagaraju, secretary, financial services, said formation of the association marks steady progress in the sector. "I assure you that any communication from the association will be examined with the utmost importance and priority. We'll also use you as a medium for testing sectoral guidance, both by regulator and govt," he said.
LIC chairman Siddharth Mohanty outlined key responsibilities for the association, including bridging gaps between stakeholders and policymakers, raising awareness about NPS benefits, simplifying subscriber experiences through innovation, and fostering collaboration among intermediaries. In a media interaction, Deepak Mohanty said the association's funding and operations would be autonomous, but may initially receive handholding support. Amitabh Chaudhry, MD & CEO of Axis Bank, emphasised the need for salaried employees to have the freedom to choose between EPFO and NPS.
State Bank of India MD Rama Mohan Rao Amara said SBI Group has been at the forefront in pushing the agenda for NPS and increasing its penetration. Stay updated with the latest news on Times of India . Don't miss daily games like Crossword , Sudoku , and Mini Crossword .
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