RBI rejects NBFCs’ plea to service pension system

Mumbai, Feb 18 (IANS) The Reserve Bank of India (RBI) on Thursday decided not to allow non-banking financial companies undertake point of presence services for National Pension System (NPS).

“Thebank has examined the proposals and it has been decided in public interest that NBFCs shall not undertake point of presence services for National Pension System,” RBI chief general manager C.D. Srinivasan said in a notification here.

NBFCs had sought the central bank’s approval for undertaking such services under the Pension Fund Regulatory and Development Authority for NPS.

All scheduled banks are authorised to service the NPS as point of presence, or collection points and providing a slew of services to the system’s subscribers.

NPS was launched on January 2004 to provide retirement income to all citizens across the country by inculcating saving habit for retirement.

The scheme was extended from May 1, 2009 to the unorganised sector workers on voluntary basis.

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