In a move aimed at making the exit process easier under the National Pension System(NPS), regulator Pension Fund Regulatory and Development Authority(PFRDA) will allow subscribers to withdraw from the scheme via on line mode from April 1 2016, said chairman Hemant G Contractor.
PFRDA is constantly striving to improve the risk / reward profile of the investment portfolio and has permitted investment in REITS, INVITS, IDFs.
The PFRDA, over the last one year, has also spruced up the pension product, making it user friendly by introducing the online registration and contribution.
At present, 16 banks are providing the facility and around 35 lenders are using the SBI payment gateway, which can facilitate the service to all citizens.
Contractor further added that the efforts are required to meet the challenges facing the unorganised sector including low awareness and low income levels to save for the future.He suggested that an effective distribution channel with proper incentive structure would go a long way in expanding the reach of NPS among the masses. He was of the opinion that it was important to include as many people in the pension plan, so that they would not face deprivation in their old age.
source:The Financial express, new Delhi, 5-02-16, page 10