Mumbai, December 21, 2024: The Association of NPS Intermediaries was officially launched today at an event held at the Insurance Institute of India, Mumbai. This landmark initiative brings together key stakeholders from the National Pension System (NPS) ecosystem to foster collaboration, strengthen subscriber welfare, and promote the continued growth of NPS as a critical retirement planning tool for the citizens of India.
In collaboration with the Pension Fund Regulatory and Development Authority (PFRDA), the Association hosted a conference titled “Securing Tomorrow, With Pension.” During the event, the association’s logo was also unveiled by Dr. Deepak Mohanty, Chairperson of PFRDA, along with other dignitaries.
The National Pension System (NPS) has seen tremendous growth in recent years, establishing itself as a cornerstone for long-term retirement planning in India. With assets under management (AUM) exceeding ₹13.7 lakh crore, NPS has emerged as one of the most efficient, tax-advantageous, and low-cost retirement solutions available today. This remarkable growth underscores its increasing acceptance and the vital role it plays in securing the future of India’s working population.
The NPS industry continues to expand rapidly, driven by growing awareness, government initiatives through PFRDA and NPS Trust and support from a robust network of intermediaries. The system’s flexibility, transparency, and ability to cater to a wide range of investors—from salaried employees to self-employed individuals—have made it a preferred choice for retirement planning across the country. The steady rise in subscribers and growing assets reflect the confidence Indian citizens place in NPS as a trusted retirement product.
A Milestone for the Ecosystem
As the NPS ecosystem evolves, the formation of the Association of NPS Intermediaries marks a significant milestone. This association unites various stakeholders, including Pension Fund Managers, Points of Presence (Bank and Non-Bank), Central Record Keeping Agencies, Trustee Banks, Custodians, Aggregators, Annuity Service Providers, Pension Agents, Retirement Advisors, and other industry participants.
The primary objectives of the association are to:
- Represent the interests of all intermediaries in the NPS ecosystem.
- Promote NPS as a reliable, flexible, and tax-efficient retirement product.
- Focus on subscriber welfare by ensuring smooth and transparent processes within the system.
- Collaborate with regulators and policymakers to improve the NPS framework and contribute to developing the pension market in India.
Speaking at the event, Dr. Deepak Mohanty, Chairperson of PFRDA, emphasized:
“The Association of NPS Intermediaries is a groundbreaking initiative that will unite various stakeholders to ensure the benefits of NPS reach every corner of the nation. Together, we can achieve the vision of providing secure and sustainable retirement options for all.”
Shri Nagaraju Maddirala, Secretary, Department of Financial Services, stated:
“This association will serve as a vital platform for dialogue, collaboration, and innovation in the NPS ecosystem. It will play a pivotal role in addressing challenges and unlocking opportunities to expand pension coverage in India.”
Shri Rama Mohan Rao Amara, Managing Director, State Bank of India said, “As a group along with SBI Pension funds which is the largest pension fund manager, we are striving to popularise NPS across all lengths and breadths of the Country in Corporate and Retail sector.”
The conference featured an insightful address by Shri Siddhartha Mohanty, Chairperson of LIC of India, who focused on the pivotal role of increased pension assets in the development of the financial sector in India. Shri Rama Mohan Rao Amara, MD of State Bank of India, and Shri Amitabh Chaudhry, MD & CEO of Axis Bank Ltd., shared their perspectives on the critical role financial institutions play in driving the adoption and growth of the NPS. Shri Animesh Mishra, Additional Central Provident Fund Commissioner, EPFO, also addressed the gathering, emphasizing the synergies between NPS and EPFO in fostering a robust and sustainable retirement ecosystem.
Event highlights
The launch event included a panel discussion on “Securing Pension for the Private Sector”, moderated by Prof. (Dr.) Manoj Anand, Whole-Time Member (Finance), PFRDA, with participation from esteemed industry experts.
The formation of this association marks an important step in ensuring the success and evolution of NPS. By empowering intermediaries and fostering innovation, the association aims to promote the adoption of NPS across India, ensuring a secure and retirement-ready future for its citizens.
