Go to the post office, buy yourself a pension plan.
In a new impetus to boost subscription levels of the New Pension System (NPS), India Post, through its network of over 10,000 computerised post offices, is set to join the NPS as one of its points of presence (POP) to distribute the product and enhance its reach.
POPs are financial institutions whose branches act as the distribution centre for the NPS.
The NPS, which received 1,371 subscriptions as of now is still exploring ways to expand reach and penetrate the market.
India Post is expected to join the Pension Fund Regulatory and Development Authority (PFRDA) as one of its POP in two to three weeks. While the 21 POP are operating through 732 branches as of now, India Post through its computerised network of over 10,000 post offices will lead to a significant jump in the reach of NPS.
“Post offices have deep reach, especially in rural areas and it will go a long way in marketing NPS,” said D Swarup, chairman, PFRDA. “Talks are on and they are expected to join the NPS soon.”
While post offices are one way that the PFRDA is eyeing to broad base its reach, it is also looking to strengthen and make its current POPs more effective.