The demand for products offered by the New Pension Scheme (NPS) was likely to outpace the demand for pension products of insurance companies, said Yogesh Agarwal, chairman of the Pension Fund Regulatory and Development Authority (PFRDA).
“NPS is a much superior product, both in terms of returns and architecture,” Agarwal told reporters on the sidelines of a conference organised by Union Bank of India to launch the facility of handling NPS through all its branches.
“Financial analysts are already saying because of the various facets like the architecture of NPS, the tax treatment exclusively accorded to the NPS, people will gradually move from insurance companies’ pension products to NPS,” he said.
Agarwal also dismissed reports of a turf battle between PFRDA and Insurance Regulatory and Development Authority (Irda) over regulation of pension products.
Earlier, a media report claimed PFRDA wanted all existing pension schemes to come under its purview once the PFRDA Bill, tabled in Parliament last month, was passed. The bill seeks to empower PFRDA to regulate the NPS and carry out promotional, developmental and regulatory functions related to pension funds.
The report also said the matter had been referred to the Financial Stability and Development Council (FSDC), which settles disputes among regulatory bodies.
“There is no turf war going on between the regulators. No reference has been made to FSDC of any kind. What PFRDA is doing is managing the NPS. There is no dispute between the regulators,” Agarwal said.
