Pension Fund Regulatory and Development Authority (PFRDA) has introduced NPS-Lite which specifically targets the economically disadvantages sections of society. NPS-Lite expects to build a corpus sufficient enough to buy an annuity for their old age. Earlier PFRDA had extended New Pension System (NPS) to all citizens of India with effect from 1st May, 2009. The NPS system has failed to take off due to lack of incentives for marketing.
“Swavalamban Scheme” of Govt. of India, which grants an incentive of Rs.1000 to all eligible NPS accounts shall be available to all NPS-Lite account holders as well, if they meet the prescribed criteria.
NPS-Lite works on a “group” model and shall be available through “Aggregators” appointed by PFRDA. It also aims at harnessing the outreach and capacity of the Government operated schemes, NGOs, MFIs, NBFCs etc. in targeting and servicing the old age savings needs of low income workers.
“Andhra Pradesh Building and Other Construction Workers Welfare Board” has already been appointed as an aggregator under NPS-Lite for making NPS available to its more than a million potential member base.