MUMBAI, Dec 21: In a bid to promote the National Pension System (NPS) ecosystem, various stakeholders including banks on Saturday announced Association of NPS Intermediaries to foster collaboration and strengthen subscriber welfare.
This association comprises stakeholders including pension fund managers, points of presence (bank and non-bank), central record keeping agencies, trustee banks, custodians, aggregators, annuity service providers, pension agents, retirement advisors, and other industry participants.
With assets under management (AUM) exceeding Rs 13.7 lakh crore, NPS has emerged as one of the most efficient, tax-advantageous, and low-cost retirement solutions available today.
This remarkable growth underscores its increasing acceptance and the vital role it plays in securing the future of India’s working population, according to a statement.
Speaking at the launch event, Chairperson of Pension Fund Regulatory and Development Authority (PFRDA) Deepak Mohanty, said, “The Association of NPS Intermediaries is a ground-breaking initiative that will unite various stakeholders to ensure the benefits of NPS reach every corner of the nation. Together, we can achieve the vision of providing secure and sustainable retirement options for all.”
The primary objectives of the association include representing the interests of all intermediaries in the NPS ecosystem, promoting NPS as a reliable, flexible, and tax-efficient retirement product, focussing on subscriber welfare by ensuring smooth and transparent processes within the system.
And also to collaborate with regulators and policymakers to improve the NPS framework and contribute to developing the pension market in India, the statement said.
“This association will serve as a vital platform for dialogue, collaboration, and innovation in the NPS ecosystem. It will play a pivotal role in addressing challenges and unlocking opportunities to expand pension coverage in India,” said Nagaraju Maddirala, Secretary, Department of Financial Services.
The NPS industry continues to expand rapidly, driven by growing awareness, government initiatives through PFRDA and NPS Trust and support from a robust network of intermediaries, the statement said.
The system’s flexibility, transparency, and ability to cater to a wide range of investors, from salaried employees to self-employed individuals, have made it a preferred choice for retirement planning across the country, it said adding that the steady rise in subscribers and growing assets reflect the confidence Indian citizens place in NPS as a trusted retirement product.
“As a group along with SBI Pension funds which is the largest pension fund manager, we are striving to popularise NPS across all lengths and breadths of the country in the corporate and retail sector,” stated State Bank of India Managing Director, Rama Mohan Rao Amara. (PTI)
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