ONE OF THE of strengths of the National Pension System (NPS) is its low cost. But that hasn’t helped it become as popular as it was expected to be. In an exclusive interview, Deepak Mohanty, Chairman of the Pension Fund Regulatory and Development Authority (PFRDA), tells Business Today that sooner or later the NPS will take off because it is a good product. He speaks about why the NPS has not gained traction so far, and the efforts the PFRDA is putting in to make it successful. Edited excerpts:
Let’s begin with the Atal Pension Yojana (APY). It has around 46.8 million subscribers, while the NPS has about 13 million. According to you, why is the APY more popular than the NPS?
You are right, APY drives the numbers. But APY is for the lower income and deprived sections of society. And so there has been a great push, like in any other social security scheme. The APY is a government scheme where the government guarantees [the returns]. It is a defined contribution and defined benefit plan. One gets a pension, followed by the spouse, who gets a full pension, and then the accumulated corpus with interest comes back to you. And if you see, the return on the APY corpus is almost 9 per cent since inception. So it is not only a pension scheme but also a good savings scheme from a medium- to longterm perspective. And given that it is a kind of social security scheme and a small ticket scheme, the pension starts from ₹1,000-5,000. So it is affordable.
Esta historia es de la edición September 17, 2023 de Business Today India.
Comience su prueba gratuita de Magzter GOLD de 7 días para acceder a miles de historias premium seleccionadas y a más de 9,000 revistas y periódicos.
Ya eres suscriptor ? Conectar
Esta historia es de la edición September 17, 2023 de Business Today India.
Comience su prueba gratuita de Magzter GOLD de 7 días para acceder a miles de historias premium seleccionadas y a más de 9,000 revistas y periódicos.
Ya eres suscriptor? Conectar
"Moving to cloud helped us grow❞
What was the problem you were grappling with?
She's Got Time
MORE WOMEN ARE BECOMING WATCH CONNOISSEURS, SEEKING OUT BOTH JEWELLED AND TECHNICAL WATCHES FOR THEIR STYLE AND CRAFTSMANSHIP
RISING STAR
PARUL GULATI IS a name that's been steadily gaining prominence in the Indian entertainment industry after she appeared on season 2 of Shark Tank in 2023. She has become a multifaceted personality who effortlessly transitions between acting and entrepreneurship.
Building on a Legacy
WHEN ZAHABIYA KHORAKIWALA stepped into her role as Managing Director of Wockhardt Hospitals over a decade ago, she confronted formidable challenges that have since turned into achievements.
LEADER IN INNOVATION
AS FEDEX'S PRESIDENT (Middle East, Indian subcontinent and Africa), Kami Viswanathan has a lot on her plate.
WAITING IN THE WINGS
Here are those who missed out as they have not yet completed a year in office; they'll be strong contenders in 2025
A DECENT PROPOSAL
IN TODAY'S WORLD OF TRYING TO CREATE AN EQUITABLE SPACE, BOTH MEN AND WOMEN CONTRIBUTE TO THEIR HOUSEHOLDS. WOMEN ARE ENCOURAGED TO HAVE THEIR OWN SAVINGS POOL AND INVESTMENT ROUTINE. GIVEN THIS, HOW SHOULD FUTURE BRIDES APPROACH FINANCIAL PLANNING?
Women and the STEM Bias
EMPOWERING WOMEN IN STEM WILL NOT ONLY BENEFIT INDIVIDUALS, BUT ALSO STRENGTHEN THE ENTIRE INDUSTRY, DRIVING INNOVATION AND PROGRESS.
ROCKET WOMEN
WOMEN IN INDIA ARE NOT ONLY VENTURING INTO SPACE BUT ARE ALSO STARTING TO SPEARHEAD THE COUNTRY'S EFFORTS IN THE GLOBAL SPACE RACE.
ONE STEP FORWARD
THE NUMBER OF WOMEN INDEPENDENT DIRECTORS IS GROWING STEADILY, BUT IT'S A LONG WAY FROM GENDER PARITY. MUCH MORE NEEDS TO BE DONE TO BREAK THE GLASS CEILING IN BOARDROOMS.