{"id":563975,"date":"2026-03-27T08:51:07","date_gmt":"2026-03-27T08:51:07","guid":{"rendered":"https:\/\/www.newsbeep.com\/ca\/563975\/"},"modified":"2026-03-27T08:51:07","modified_gmt":"2026-03-27T08:51:07","slug":"bank-sponsored-pension-funds-to-be-a-game-changer-for-nps-says-pfrda-chief","status":"publish","type":"post","link":"https:\/\/www.newsbeep.com\/ca\/563975\/","title":{"rendered":"Bank-sponsored pension funds to be a game changer for NPS, says PFRDA chief"},"content":{"rendered":"

MUMBAI: Opening up pension fund sponsorship to banks could mark a turning point for the National Pension System (NPS), according to Pension Fund Regulatory and Development Authority (PFRDA<\/a>) chairperson Sivasubramanian Ramann, signalling a push to scale up distribution and deepen investor reach.<\/p>\n

Speaking at a fireside chat at the Mint India Investment Summit 2026, held in Mumbai on Thursday, Ramann suggested the move would significantly widen access. \u201c(W)hether it is to be seen as a barometer of the reforms that have been already brought in, but we have four pension funds which are knocking on the door,\u201d he said.<\/p>\n

One new pension fund, sponsored by Parag Parikh Financial Advisory Services, has already received a licence, with three more expected over the next 30-40 days, he added.<\/p>\n

Also Read | Why UPS pensions are hard to replicate through NPS<\/a><\/p>\n

The broader strategy hinges on expanding distribution, particularly through digital channels. In a market as large and fragmented as India, Ramann argued, digital adoption is critical to achieving meaningful scale.<\/p>\n

Smaller than MF<\/p>\n

Despite steady growth, NPS remains far smaller than the mutual fund industry. Mutual funds closed FY25 with a record \u20b965.74 trillion in assets under management, compared with \u20b913.98 trillion for NPS in FY25.<\/p>\n

The gap reflects structural differences. NPS is a government-backed, long-term retirement product designed to enforce disciplined savings, while mutual funds offer greater flexibility, liquidity and a wider range of investment options. Market participants say this makes mutual funds more adaptable to varied financial goals, even as NPS anchors retirement planning.<\/p>\n

Also Read | Can your NPS pay hospital bills? ICICI Pru tests a new model<\/a><\/p>\n

Ramann emphasized the distinction between financial products and NPS, adding that the system is not necessarily meant to function like a mutual fund. He noted that each serves a distinct purpose, and investors need different products to meet different goals.<\/p>\n

\u201cOur aim is not to trap an investor and make them a prisoner. The aim is to teach you to be patient. Keep your money for a long time, the power of compounding is just phenomenal,\u201d he said.<\/p>\n

Easing rigidity<\/p>\n

The regulator has, however, been easing some of NPS\u2019s rigidity. The recently introduced Multiple Scheme Framework (MSF), effective 1 October 2025 for non-government subscribers, allows greater flexibility and choice in investment options.<\/p>\n

This marks an evolution in the system\u2019s design, from an initially passive approach to allowing active strategies and a broader investment universe. Ramann likened the shift to building a system with \u201cboth an accelerator and a brake,\u201d balancing growth with stability.<\/p>\n

Looking ahead, the PFRDA is targeting double-digit returns for NPS investors over the next decade, particularly as government bond yields potentially soften, making diversification more important.<\/p>\n

Also Read | Corporate NPS makes more sense than ever. The catch: your employer<\/a><\/p>\n

That imperative is sharpened by the scale of long-term domestic capital. Ramann pointed to combined pools from NPS, Employees Provident Fund Organisation<\/a>, and insurance funds exceeding \u20b9120 trillion, raising critical questions around deployment and returns.<\/p>\n

To address this, Ramann said, NPS has begun allocating a small portion of its corpus, around 1%, to unlisted assets via the AIF route, aiming to capture long-term returns over 25-35 years. It has also introduced limited exposure to commodities such as gold and silver, again capped at about 1% of assets.<\/p>\n","protected":false},"excerpt":{"rendered":"MUMBAI: Opening up pension fund sponsorship to banks could mark a turning point for the National Pension System…\n","protected":false},"author":2,"featured_media":563976,"comment_status":"","ping_status":"","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[14],"tags":[217630,45,49,48,217631,217629,133,217628,35403,217627,217624,217626,131,132,217625,150872],"class_list":{"0":"post-563975","1":"post","2":"type-post","3":"status-publish","4":"format-standard","5":"has-post-thumbnail","7":"category-personal-finance","8":"tag-alternative-investment-funds-nps","9":"tag-business","10":"tag-ca","11":"tag-canada","12":"tag-digital-distribution-pensions-india","13":"tag-epfo-insurance-funds-capital","14":"tag-finance","15":"tag-multiple-scheme-framework-msf","16":"tag-national-pension-system","17":"tag-nps-aum-vs-mutual-funds","18":"tag-nps-india","19":"tag-pension-fund-sponsors-banks","20":"tag-personal-finance","21":"tag-personalfinance","22":"tag-pfrda-ramann","23":"tag-retirement-planning-india"},"_links":{"self":[{"href":"https:\/\/www.newsbeep.com\/ca\/wp-json\/wp\/v2\/posts\/563975","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/www.newsbeep.com\/ca\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.newsbeep.com\/ca\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.newsbeep.com\/ca\/wp-json\/wp\/v2\/users\/2"}],"replies":[{"embeddable":true,"href":"https:\/\/www.newsbeep.com\/ca\/wp-json\/wp\/v2\/comments?post=563975"}],"version-history":[{"count":0,"href":"https:\/\/www.newsbeep.com\/ca\/wp-json\/wp\/v2\/posts\/563975\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/www.newsbeep.com\/ca\/wp-json\/wp\/v2\/media\/563976"}],"wp:attachment":[{"href":"https:\/\/www.newsbeep.com\/ca\/wp-json\/wp\/v2\/media?parent=563975"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.newsbeep.com\/ca\/wp-json\/wp\/v2\/categories?post=563975"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.newsbeep.com\/ca\/wp-json\/wp\/v2\/tags?post=563975"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}