The non-banking finance company, Muthoot Finance, has inked deal with the government owned body Pension Fund Regulatory and Development Authority (PFRDA) to provide pension schemes from its various branches.
It is to be noted that Muthoot Finance is a gold loan provider based in Kerala and PFRDA is a government body controlled by the Ministry of Finance.
The tie up allows Muthoot Finance to operate as a service provider and offer pension plans under the national pension scheme. The national pension scheme can be availed by all Indian citizens voluntarily. It also benefits those employees who are working in unorganized sectors. National pension scheme is promoted by the government of India to provide financial security to elderly people.
Talking about the tie up, the Managing Director of Muthoot Finance, Mr. George Alexander Muthoot said, "With our pan India network, we will ensure that the benefit of this pension scheme reaches maximum number of Indians."
The most significant aspect of the scheme is that it can be availed by all Indian citizens who are in the age group of 18 years to 60 years. The scheme provides a regular (monthly) source of income after the age of 60 years and tax benefits of 10 percent to a person on his/her salary (basic +DA) as per the section 80 CCD (2) of the Income Tax Act. In addition to this, on reaching the age of 60, an individual also receives 60 percent of outstanding balance in his/her account, as lump sum amount.