NEW DELHI: Finance Minister Nirmala Sitharaman highlighted the National Pension System (NPS) as a viable investment option and emphasized the need to expand its coverage, particularly aimed at gig workers and women. During the NPS Diwas event, she urged that the best time to attract subscribers is when they are young, as this allows for the benefits of return compounding over their working lives.
In alignment with recent budget announcements, Sitharaman stated that a forum comprising regulators and government departments has been established. This forum aims to harmonize disclosure and investment standards, facilitate portability among pension products, and enhance customer protection. It includes representatives from the Pension Fund Regulatory and Development Authority (PFRDA), the Securities and Exchange Board of India (Sebi), the Insurance Regulatory and Development Authority of India (IRDAI), the Employees’ Provident Fund Organisation (EPFO), and various government departments.
Currently, pension plans are marketed by insurance companies, mutual funds, and other entities regulated by the PFRDA, alongside the EPFO, which manages the Employees Pension Scheme. Each of these entities operates under distinct management, investment, and cost structures. Despite being on the government’s agenda for over a decade, consensus on common regulations has remained elusive due to the unwillingness of entities to agree on unified standards.
“Stakeholder consultations are underway; the goal is to create a predictable, citizen-centric pension market with clear regulations and seamless services,” said Sitharaman.
