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‘NPS to witness exponential growth’

The New Pension Scheme (NPS) is expected to witness exponential growth with the Madhya Pradesh government, State Bank of India and several state-owned companies joining the scheme.

business Updated: Nov 09, 2009 21:56 IST

The New Pension Scheme (NPS) is expected to witness exponential growth with the Madhya Pradesh government, State Bank of India and several state-owned companies joining the scheme.

“We have seven lakhs people in the NPS. We have Rs 3,200 crore in the management and more and more are opining... (NPS will see) exponential growth from hear onwards,” said, D Swarup, chairman, Pension Fund and Regulatory Development Authority (PFRDA) said on Monday.

The Madhya Pradesh government, which runs a co-contribution pension scheme for the low income earners, wants NPS to manage the funds, he said adding that other states would follow the suit once they realise the benefits.

“They (MP government) are bringing in a whole lot of self-help groups into it. Similarly, several other state governments run co-contribution schemes...They would also automatically follow, because it (NPS) offers low-cost and flexible model,” he added.

SBI, has about Rs 13,000 crore in a retirement scheme which it operates for bank employees. “They also have agreed in principle to transfer this fund to NPS for management,” Swarup added.