NEWS & ADVICE : SAVINGS ACCOUNTS
Finance Ministry sets targets for New Pension Scheme subscriptions for PSBs
By Neelima Shankar
Jun 25, 2012
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Disappointed by the poor subscriptions on New Pension Schemes (NPS) at public sector banks (PSB) has made the finance ministry to set a minimum target for the banks to achieve.

As per the ministry data, only 501 out of 6.44 lakh NPS subscriptions were registered at PSB branches designated as Points of Presence (PoP). The ministry has now set a target of 150 and 50 subscriptions for rural and urban branches respectively.

PSBs have registered 8000 PoPs with the Pension Fund Regulatory and Development Authority (PFRDA). Government had launched the Swavalamban Yojana for all citizens 18- 60 years of age not covered under any other pension scheme.

As per the scheme, anyone with investments of Rs. 1000 to Rs. 12000 per month can be a part of the scheme, with Rs. 1000 per month contribution from the government for the first four years.

The ministry has also suggested a performance based appraisal for the employees of the PoPs, and also emphasized on better training to the employees of the branches.

According to bankers, it becomes difficult to sell the NPS scheme since the returns cannot be shown. Since the returns are related to market returns, customers are a bit wary to switch from the fixed returns they are getting from term deposits and savings bank account.


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