The registration of Reliance Capital Pension Fund under National Pension Scheme (NPS) has been cancelled following a request by the company, pension fund regulator PFRDA said. Reliance Capital Pension is no longer available for subscription under NPS, said PFRDA. It was one of the eight companies registered under NPS to manage funds for subscribers for the private sector.
Earlier this year, the company had surrendered its NPS licence.
"This is to inform to general public that based on the request received from Reliance Capital Pension Fund Ltd, the certificate of registration granted to Reliance Capital Pension Fund Ltd has been cancelled by the Authority and the pension fund is no longer available for subscription under NPS," PFRDA said in a notification dated 15th November.
The other seven funds for private sector subscribers are HDFC Pension Management Co, ICICI Prudential Pension Fund Management Co, Kotak Mahindra Pension Fund, LIC Pension Fund, SBI Pension Funds, UTI Retirement Solutions, and Birla Sunlife Pension Management.
NPS, which was initially introduced for government employees, was later thrown open to all citizens of the country, including unorganised sector workers. Recently, PFRDA permitted Overseas Citizen of India (OCI) to enroll in NPS at par with Non-Resident Indians (NRIs).
The contributions made towards the NPS are eligible for an additional tax deduction under section 80CCD (1B) up to ₹50,000 which is over and above the ₹1,50,000 limit of deduction available under sec 80CCD (1).
In the Union Budget 2019, the tax exemption limit for lumpsum withdrawal on exit/maturity from the NPS was increased from the present 40% to 60% under Section 10 (12A) of the IT Act and the remaining 40% of the corpus is already tax-exempt as it is mandatorily utilized for annuity purchase.
PFRDA runs two pension schemes - NPS and Atal Pension Yojana. The former caters to the government and organised sector employees, the latter is mainly for the workers in the unorganised sector.
As on October 26, 2019, the total number of subscribers under the NPS and Atal Pension Yojana has crossed 3.18 crore. The asset under management (AUM) stands at ₹3,79,758 crore.