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Photo: iStock
Photo: iStock

AUM under NPS, Atal Pension Yojana schemes cross 5 trillion

  • The number of subscribers under the NPS and Atal Pension Yojana crossed 37.6 million as on 10 October

The Pension Fund Regulatory and Development Authority (PFRDA) on Thursday said the assets under management (AUM) of the National Pension System (NPS) and Atal Pension Yojana schemes has crossed the 5 trillion mark, up 35% since October last year. It had assets of 4.17 trillion under management at the end of March, and seeks to achieve 6 trillion by the end of FY21.

The number of subscribers under the NPS and Atal Pension Yojana crossed 37.6 million as on 10 October.

“We have enabled a robust and unique architecture with efficient systems and professional fund managers delivering market-based returns, enabling our subscribers to accumulate their retirement corpus. During this pandemic, a growing realization of both corporates and individuals has emerged that retirement planning is not a mere saving or tax benefit choice, witnessed by NPS enrolment growing almost 14% during this challenging period," said Supratim Bandyopadhyay, chairman, PFRDA.

On steps taken by the regulator to ensure the growth of pension schemes, the chairman said it has simplified the process for joining by corporates, and employers have been allowed to authenticate employees’ NPS application forms through email.

According to PFRDA, 45 central public sector enterprises have moved their existing superannuation funds to NPS, with another two-three public companies in the process of shifting their accounts.

On the timeline for the launch of guaranteed return products, Bandyopadhyay said PFRDA will form a committee to study the product.

“The moment you give a guaranteed product, the capital adequacy requirements go up. Since it is a part of the PFRDA Act, we have to offer such a product, and during this financial year, we will formulate a product and will give it to the board for approval," Bandyopadhyay said.

The NPS has given an annualized return of 9.71% on equity investments in the past 11 years, while the bond portion has delivered 10.31% return.

The regulator has introduced new methods for authenticating subscribers, including OTP- or eSign-based and offline Aadhaar-based onboarding, third-party onboarding after KYC verification, e-nomination and e-exit for NPS subscribers.

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