In a significant milestone for the National Pension System (NPS) private sector, the total subscriber base has surged to 51.8 lakh, with assets under management (AUM) worth ₹2.09 lakh crore as of January 13, 2024. The number of corporate subscribers, on the other hand, has reached 18.94 lakh, marking a 16% increase from the previous financial year.
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The AUM for corporate subscribers has surged by 38%, reaching ₹1.55 lakh crore, up from ₹1.17 lakh crore Year-on-Year (YoY), Pension Fund Regulatory and Development Authority (PFRDA) said on Friday, January 19.
Commenting on this, Deepak Mohanty, Chairman, PFRDA said, "We have 7 crore subscribers in NPS and Atal Pension Yojana (APY) put together. APY is at 1 crore subscribers, and we had a target of 1.3 crore, which we are in range to achieve."
While speaking to CNBC-TV18, Mohanty further addressed the expansion of the AUM, saying, "The corpus has also expanded and crossed ₹11 lakh crore. We expect it to cross ₹12 lakh crore before the end of this year."
Recently, the number of registered corporate entities under NPS has shown a positive trend, increasing to 14,991 as of December 2023, compared to 12,865 in March 2023.
The milestones include reaching an AUM of ₹11 lakh crore on January 10, 2023, and the private sector AUM hitting the ₹2 lakh crore mark on December 9, 2023.
Notably, the AUM grew from ₹10 lakh crore to ₹11 lakh crore in just four months and 18 days
On the other hand, the "All Citizen" category has also contributed to the growth, witnessing a 22% increase in subscribers, reaching 32.86 lakh from 29.57 lakh. The AUM for All Citizen subscribers has surged by 38%, reaching ₹0.54 lakh crore from ₹0.43 lakh crore YoY.
PFRDA said its recent regulatory enhancements such as the Point of Presence (PoP) regulations 2023, notified on January 10, 2024, simplified the registration process.
"The revisions allow banks and non-banks to require a single registration for NPS, as opposed to multiple registrations earlier, promoting efficiency and broader digital adoption," PFRDA said.
Under the revised regulations, the eligibility criteria for entities engaging in distribution have been strengthened, with a minimum net-worth requirement of Rupees two crore.
Additionally, the recent entry of DSP Pension Fund Managers as the 11th Pension Fund has added diversity to the sector.
Subscribers can now get systematic lump-sum withdrawals, choose from multiple Pension Funds (PFs) for each asset class, and experience more flexibility in their equity exposure.
(Edited by : Vijay Anand)
First Published: Jan 19, 2024 4:27 PM IST
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