As in some of the countries, minors in India may also be allowed to open NPS account by the PFRDA. Hemant Contractor, Chairman of the pension body in India, as quoted in the PTI report said, "We are looking at the possibility of allowing minors to join NPS because in some countries it is allowed. So we are looking at that issue".
Within its fold, pension fund regulator PFRDA runs two of the schemes, one primarily catering to both private and government sector employees (NPS) and the other which is specifically targeted at unorganized sector (APY).
Contractor further added, "There are legal issues like a minor's capacity to enter a contract. Under the law, minors cannot enter into a contract. Another issue is like whether they can discharge their responsibilities under the contract. So we are trying to find out how to get around those issues".
In respect of the timeframe as to by when the decision on the matter shall be taken Contractor said, "We are looking at it very closely, may be in 2-3 weeks something concrete may come up".
The body shall first conduct an internal discussion on the matter and then take on the proposal with the finance ministry.
With Inputs From PTI