PFRDA To Observe National Pension System Diwas (NPS Diwas) On October 1

The Pension Fund Regulatory and Development Authority (PFRDA) will celebrate National Pension System Diwas (NPS Diwas) on October 1 to encourage individuals to think about their retirement plans. On September 23, 2021, the regulator announced the launch of a campaign called "Azadi Ka Amrit Mahotsav." The PFRDA is implementing the #npsdiwas initiative on its social media networks to promote pension and retirement planning.
The authority intends to urge every working individual and self-employed individuals - to prepare for a steady income so that they can have a stable life once they retire. Upon their retirement, NPS subscribers can now reap many benefits which include power of compounding also, said PFRDA in a statement.

"We are happy to announce October 1 as NPS Diwas, especially for pension and retirement planning. We are excited to be a part of the Azadi Ka Amrit Mahotsav of the Government. Through this campaign, we want to create awareness about pension planning among the public. As a regulatory body, our foremost aim is to cover all eligible citizens under a pension scheme to fulfill the vision of a pensioned society for India," PFRDA Chairperson Shri Supratim Bandyopadhyay acknowledged.

In addition, on September 22, the Pension Fund Regulatory and Development Authority (PFRDA) has also released a new Pension Fund Regulatory and Development Authority (Custodian of Securities) (Amendment) Regulations, 2021.

If the sponsor of a Pension Fund, Trustee Bank, or central record-keeping agency, or their associates, possess 50% or more of the voting rights of a custodian's share capital, the custodian can apply to the Authority to become a custodian. The conditions are as follows:

• The sponsor, associates, or holding company, as the case may be, must have a net worth of at least Rs.50,000 crore.
• The custodian's board of directors must have 50% or more directors who do not represent the sponsor or its associates' interests.
• PFRDA has further said that the custodian and the pension fund company cannot be subsidiaries of each other and no one can be a director of both the custodian and the pension fund company at the same time.
• In their dealings with the schemes, the custodian and the pension fund company must sign an agreement stating that they would act independently of each other, and the applicant's minimum holding of assets under custody on the date of application shall be as defined under the selection process, PFRDA further added.
• These shall come into force on the date of their publication in the official gazette, said the regulator.
• For the purpose of this provision the expression "holding company" shall have the meaning as provided in Section 2(46) of the Companies Act, 2013.

Source: PFRDA