India’s PFRDA Bill finally gets the green light
05 September 2013
News, Asia, India
By Asia Asset Management
The Lok Sabha, which is India’s “House of the People”, more commonly known as the lower house of the Parliament of India, passed the Pension Fund Regulatory and Development Authority (PFRDA) Bill, 2011 on Wednesday, September 4 to regulate the New Pension System (NPS).
According to Business Standard, the bill was introduced in the lower house in March 2011 to provide for a statutory regulatory body. Currently the PFRDA has a non-statutory status.
The NPS has been made mandatory for all the central government employees (except armed forces) entering service with effect from January 1, 2004, a finance ministry statement said. In all, 26 states have already notified NPS for their employees.
"NPS has been launched for all citizens of the country including unorganised sector workers, on voluntary basis, with effect from May 1, 2009," the statement added.
The ministry said the PFRDA Bill would also provide subscribers a wide choice to invest their funds for assured returns by opting for government bonds as well as in other funds depending on their capacity for risk.
More News >