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NPS guaranteed return product to have floating rates, reset every year

Guarantee benchmarked to the rate of return on ten-year government security

Supratim Bandyopadhyay, Chairman, PFRDA
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Supratim Bandyopadhyay, Chairman, PFRDA | Illustration: Binay Sinha

Indivjal DhasmanaSanjay Kumar Singh New Delhi
A minimum assured return scheme (MARS) in the new pension system (NPS) would have a floating rate which would reset every year under the proposed new product to be launched by the pension regulator early next financial year.

There would be a lock-in period of ten years for the product and the guarantee would be benchmarked to the rate of return on ten-year government security, Supratim Bandyopadhyay, chairman of the pension fund regulatory and development authority (PFRDA), told 'Business Standard'.

"The guarantee is not a fixed guarantee, it is a floating one every year," he said.

Suppose the guarantee is

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First Published: Dec 29 2022 | 12:09 PM IST

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