Finance ministry to meet PSU bank chief based in south on Swavalamban

MUMBAI: In a bid to push Swavalamban Yojana- a pension scheme aimed at unorganised sector, D K Mittal, secretary - department of financial services will be meeting chiefs of south based banks on Sunday (December 18) in Bangalore.

As per the scheme, mainly aimed at low income group in rural India, government will contribute Rs 1000 per year to each net pension scheme (NPS) account opened in the year 2010-11 and for the next three years, that is, 2011-12, 2012-13 and 2013-14. The benefit will be available only to those who join the NPS with a minimum contribution of Rs 1,000 and maximum contribution of Rs 12,000 per annum.

The government wants state owned banks to actively sell NPS given their presence in rural India. During the meeting, finance ministry is likely to set targets for each bank and assign districts they have to cover for the NPS scheme under the Swavalamban Yojana.

Among banks, chief of Canara Bank, Indian Overseas Bank, Syndicate Bank, Indian Bank, Andhra Bank, Corporation Bank,Vijaya Bank and State Bank of Travancore are expected to be present.