Very soon, investors will have more outlets for investing in the new pension system (NPS). These include post offices as well. Being dissatisfied with the current distributors, the pension fund regulator has tied up with 8 more service providers to increase the reach of the schemes. The scheme was first made open to public in May last year. But till date it has just managed to register only around 3,000 subscribers. The regulator considers the distribution or the point of presence (PoP) as the main problem hampering the spread of the system.
Now Department of posts, Bank of India, ICICI Securities, Muthoot Finance, Syndicate Bank, UTI Technology Services Ltd, Yes Bank and Karur Vysya Bank have become PoPs for the NPS. They are believed to add 2,000 branches more to the 880-branch network, to let subscribers open and run their NPS accounts. They are believed to become operational in another 2-3 months.
As IT connectivity is a must for dealing with NPS customers, the new points of presence will need some time for detecting the branches that can provide the services for the schemes. They are also merging their systems with those of National Securities Depository Ltd, which is the record-keeping branch of the NPS.
Get the best deals on loan offers
- Home loans
- Personal loans
- Car loans
Some useful personal finance calculators
Also Read :
- FAQs on the new pension scheme
- No investment into companies directly: PFRDA
- More