NPS witnesses 30-35 per cent compound growth in assets: PFRDA Chairman
ThePension Fund Regulatory and Development Authority (PFRDA) in association with Indian Chambers of Commerce (ICC) Hyderabad chapter today organized a webinar on ‘National Pension System (NPS) for Corporates – Understanding the Impact of Pandemic on Retirement Benefits Planning’. During the webinar more than 56 corporates participated and Shri Supratim Bandyopadhyay, Chairman, PFRDA was the keynote speaker.
The total assets under management (AUM) under NPS and APY amounts to over Rs 5 lakh 29 thousand crores. So far more than 8200 corporates have registered under NPS, in which 10.63 lakhs corporate employees are on board.
Shri Supratim Bandyopadhyay, Chairman, PFRDA, said “Pension sector is very much fragmented in India and manged by various bodies. India’s pension savings is only 2.1 per cent of the gross national disposable income. If total assets are taken into account under pension sector in India, it is only 10 per cent of the GDP. However, it is more than 100 per cent in a few countries abroad. It is 148 per cent in Switzerland, 120 per cent in Australia and 105 per cent in UK. So, we have lot to catch up with,”
Shri Bandyopadhyay also said, “We witnessed 30-35% compound growth and assets growth was almost 30 per cent in this Financial Year as compared to last March. We have 38 million customer base which is only a small part of population”.
NPS was started as country’s first defined contribution pension scheme in 2004. Later the scheme was extended to state governments and to all citizen after that.
Pension Fund Regulatory and Development Authority (PFRDA) is the statutory authority established by an enactment of the Parliament, to regulate, promote and ensure orderly growth of the National Pension System (NPS) and pension schemes to which this Act applies. NPS was initially notified for central government employees recruits w.e.f. 1st Jan 2004 and subsequently adopted by almost all State Governments for its employees. NPS was extended to all Indian citizens (resident/non-resident/overseas) voluntarily and to corporates for its employees.
As on 21st November 2020, the total number of subscribers under NPS and Atal Pension Yojana has crossed 3.87 crores and the Asset under Management (AUM) has grown to Rs 5,29,473 crores.