New Delhi, Jan. 1 -- In a significant move to strengthen India's pension ecosystem, the Pension Fund Regulatory and Development Authority (PFRDA) has, in principle, approved a framework permitting Scheduled Commercial Banks (SCBs) to independently establish pension funds to manage the National Pension System (NPS).
The decision aims to enhance competition and protect subscriber interests by addressing previous regulatory constraints that limited bank participation.
According to an official government release, the new framework introduces clear eligibility criteria for banks wishing to sponsor pension funds. These criteria, based on net worth, market capitalization, and prudential soundness aligned with Reserve Bank of India norms, will en...