The ambitious New Pension System, which offers pension solutions to individuals through a defined contribution model, has evidently received lukewarm response in the two weeks since its launch.
Though officials at the Pension Funds regulatory and Development Authority (PFRDA) were still awaiting the exact numbers, it is believed only about 200 subscriptions have been received till Friday.
“The numbers are not worrying because we expect the scheme to grow and attract the subscribers gradually and it will take some time,” said a senior official at PFRDA who did not wish to be named.
One reason, it is felt, is the ongoing election fever. “Since the scheme has been launched, people have been more focussed on elections,” the PFRDA official said.
The NPS can be subscribed through the 348 offices of the 23 points of presence (POPs) in 95 cities across the country. As on Thursday, it received 134 subscriptions. “We have received a larger number of subscriptions today (Friday),” another official at PFRDA added.
The PFRDA expects that as demand grows, the product would be offered by more branches of the POPs, and that would make it more accessible.
“Not all branches of the POPs are offering the product, but as the market for pension grows and more people come to open accounts it will compel the banks to nominate more branches to sell this product,” said D Swarup chairman PFRDA.