PFRDA roping in banks to tap NRIs for National Pension Scheme

NEW DELHI: The pension regulator is keen to attract non-resident Indians to join the National Pension System, the central government’s flagship pension scheme for all citizens.

“We have started talking to bankers about attracting NRIs (non-resident Indians) to enrol for NPS (National Pension System) scheme,” said Hemant Contractor, chairman of the Pension Fund Regulatory and Development Authority ( PFRDA). “We see NRIs as very attractive market for NPS. We would like to push for NPS for the NRIs,” he said. Contractor said the regulator, which administers the NPS, is in talks with banks such as the State bank of India, HDFC Bank, Federal Bank, Canara Bank and Indian Bank.

Earlier there were some ambiguity regarding NRIs investing in the national pension scheme. But, Contractor said, the Reserve Bank of India has now clarified on the same, which will help PFRDA attract non-resident Indians in a big way.

Also, the government decision to offer tax benefits on investments of up to Rs 50,000 in NPS scheme has given a fillip to the scheme, he said and expressed optimism about growing its subscriber base.

On the recommendations of the Bajpai committee on investment pattern guidelines for NPS scheme in the private sector, Contractor said the report is under consideration and PFRDA has constituted two sub-groups to look into it. “The report of the two sub-committees are expected to be out in 10 days. And then we can decide how far to go about in taking the Bajpai committee recommendations,” he said.