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Friday, January 30, 2015

Jayant Sinha, Minister of State for Finance Emphasises the Need for Innovative Product Development in an Ever Expanding Capital Market

Urges The Central Government Ministries to Maximise the Number of Members in NPS; more than 80 Lakh Subscribers Under NPS with Total Asset Under Management (AUM) of more than Rs.76,000 crores 

Shri Jayant Sinha, Minister of State for Finance emphasised the need for innovative product development in an ever expanding capital market. He stressed the aspect of empowerment and not empty entitlements as the core philosophy of the present Government. While commending Pension Fund Regulatory Development Authority (PFRDA) for putting-up a highly efficient technology platform under the NPS architecture, Shri Sinha urged the Central Government Ministries to maximise the number of members in NPS. Currently, NPS has more than 80 Lakh subscribers with total Asset Under Management (AUM) of more than Rs.76,000 crores. Shri Sinha stressed that the Government would strive to provide all possible enablers. Minister of State for Finance Shri Sinha was delivering the inaugural address at a Conference organised by the Pension Fund Regulatory and Development Authority (PFRDA) for the Central Government Ministries to discuss on the important role of the Financial Advisors & Chief Controller of Accounts (FAs/CCAs) of the Central Government Ministries in the implementation and monitoring of the National Pension System (NPS). He said that the workers in the unorganised sector through Swavalamban would be supported through the social security net. He added that NPS would effectively address the pension issues of approximately 10-12 million young work force being added on an annual basis. Addressing the issue of future course of action, Shri Sinha urged PFRDA to provide enabling framework for more products and wider coverage of the population with pension products. Further the Regulator may consider alternative investment funds like Venture Capital funds and Growth Capital Funds which are important to encourage entrepreneurship in our country, the Minister added. 

Earlier speaking on the occasion, Chairman PFRDA, Shri Hemant Contractor, commended the substantial improvement in performance of Central Government Ministries under NPS. He stated that the attractive market based returns have added to the stakeholder confidence. He raised two pertinent issues for the participating members which impact the final pension receivable by a Government subscriber which include efficiency in handling of subscriber contribution & its timely deployment for investment, and ensuring full coverage of all government subscribers including autonomous bodies. 

Shri Ratan P Watal, Secretary, Department of Expenditure, Ministry of Finance emphasised on the dual responsibility of PFRDA as a regulator and developer of the pension industry. Shri Watal stressed the process orientation of NPS and emphasised the important role of FAs/CCAs in terms of early enrolment and timely contribution, upload and redressal of subscribers' grievances. He further advised the FAs/CCAs to carry-out periodic reviews on the implementation of NPS and performance of the scheme under the above parameters specifically. 

Shri R V Verma, Whole Time Member (WTM- Finance), while summing- up emphasised the need for discipline of remitting of the subscriber contribution especially in view of the enhanced role of the Government nodal officers as envisaged in the regulations and the provisions of the Act . He sought the cooperation of Government to suggest the way forward for providing individual choices of pension funds and investment pattern for Government Subscribers. He stressed on the need for enhancing capacity building of the nodal officers so that they could in turn enable the financial literacy and awareness of the subscribers. 
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