BFSI Summit Day 2 highlights: Biggest challenge is educating informal sector, says PFRDA chief

BFSI Insights Summit Day 2 highlights: The summit, scheduled from October 29 to 31, will bring together top policymakers, CEOs, and industry experts for a series of keynote addresses, fireside chats

7:17 PM

BFSI update: Clear, common definition of pension products needed, says PFRDA chief

“Employees’ Provident Fund (EPF), for instance, has delivered real value to millions. But pension awareness and clarity remain weak — many people don’t even realise a portion of their EPF goes toward it until they retire. What we need now is a clear, common definition of a ‘pension product’,” S Ramann, chairperson of the PFRDA, said.

6:56 PM

Financial literacy is the basis for driving purchase of financial products: S Ramann

6:48 PM

PFRDA must find ways to sustain pension inflows, says S Ramann

The NPS lost its tax incentives under the new tax regime, which has affected around 70 per cent of its subscribers, S Ramann, chairperson of the Pension Fund Regulatory and Development Authority (PFRDA), said.  He emphasised that the regulator must find ways to sustain pension inflows. 

6:40 PM

Biggest challenge is educating informal sector on investing, says PFRDA chief

S Ramann, chairperson of the Pension Fund Regulatory and Development Authority (PFRDA), stated that India already has a robust pension framework, comprising 10 pension funds, three interoperable central record-keeping agencies (CRAs), and a strong institutional backbone. “The real challenge lies in educating the informal sector; convincing people to invest in something they can’t see. The goal is to ensure people know how to grow rich before they grow old,” he said.

6:32 PM

BFSI update: The key question now is what role Bima Sugam will play, says Debasish Banerjee

6:17 PM

Wave affecting all sectors is digitisation and AI, says Kedaara's Manish Kejriwal

Time will tell how AI mania will affect India, said Manish Kejriwal, founder, Kedaara Capital.

6:12 PM

Bima Sugam to boost integration of workforce: IBAI's Narendra Bharindwal

The insurance industry, along with the regulator, has built a vast distribution network employing around 4.5 million people, directly or indirectly, Narendra Bharindwal of the Insurance Brokers Association of India (IBAI) stated. We look forward to seeing how this workforce will be integrated with the rollout of Bima Sugam, he added.

5:59 PM

BFSI update: Bima Sugam will make insurance more affordable: Sharad Mathur, CEO, Universal Sompo

5:56 PM

BFSI LIVE update: Private equity has outperformed public markets for 25 years, says Abhishek Kabra

Private equity has consistently outperformed public markets over the past 25 years, Abhishek Kabra of Samara Capital said. He added that allocation towards alternative investment strategies is set to rise, with India poised to see record deal flows in the coming years.

 

5:50 PM

BFSI update: Trends show PE in India is on its way to become a mainstream sector, says Gopal Jain

5:40 PM

BFSI Summit: Industry leaders discuss how Bima Sugam could simplify access, improve transparency

5:00 PM

Need stronger safeguards while driving AI innovation: Mahavir Jindal, COO, Amazon Pay India

The company aims to foster innovation and encourage experimentation while maintaining control and ensuring protection, Mahavir Jindal, chief operations officer (COO), Amazon Pay India, stated. “We need to do a better job of addressing the emerging threats posed by AI,” he added.

4:36 PM

Rapid growth, over-leveraging make microfinance more vulnerable: ICRA's Karthik Srinivasan

The industry’s rapid growth had led to some missteps both at the entity and macro levels, Karthik Srinivasan, group head of financial sector ratings at ICRA, said. Over-leveraging has occurred across the NBFC sector, with the microfinance segment appearing particularly vulnerable, he added.

4:24 PM

Over 70 per cent of microfinance clients have loans under ₹1 lakh: MFIN CEO

Almost 97 per cent of microfinance clients -- about 74 million borrowers -- have loans from three or fewer lenders, accounting for 91 per cent of the total portfolio outstanding, Alok Misra, chief executive officer of MFIN, stated. He added that for 71 per cent of clients, the outstanding loan amount is below ₹1 lakh.

4:10 PM

Microfinance sector serves 80 million households with ₹4.4 tn AUM: Muthoot CEO

Sadaf Sayeed, Chief Executive Officer of Muthoot Microfinance, said the microfinance industry currently manages assets under management (AUM) of about ₹4.4 trillion, covering around 80 million household accounts. “This is the only industry that provides customer data on a daily basis. Industry players have also been instrumental in lending to the bottom of the pyramid,” he stated.