Of the total 24 lakh subscribers of NPS, only around 45,000 are from the informal sector. NPS is a government-run retirement scheme for individuals, including those in the unorganised sector
The government is looking at ways to popularise the new pension system (NPS) by strengthening the distribution base to reach out to the informal sector, a finance ministry official said today.
Of the total 24 lakh subscribers of NPS, only around 45,000 are from the informal sector. NPS is a government-run retirement scheme for individuals, including those in the unorganised sector.
"We are aiming at increasing the subscriber base by way of strengthening Points-of-Presence (PoPs), which will enable us to reach out to people," the official said. PoPs are the first points of interaction with NPS subscribers. Authorised branches act as collection points and extend customer services.
There are about 30 PoPs in the country at present. The official said the ministry is looking at ways to reduce expenditure and reach out to people to increase participation.
"We need to increase awareness among people about NPS. We are trying to find ways to reduce distribution expenses and involving state agencies to reach out to the informal sector.
Of the total NPS subscribers, over 7.92 lakh are central government employees, 9,042 are from private companies, 41,826 are employees from central autonomous bodies. About 7.84 lakh subscribers are from state governments.
Earlier this year, a committee set up by the Pension Fund Regulatory and Development Authority (PFRDA) had suggested substantial lowering of the cost of buying NPS, besides providing incentives to distributor, which could help in increase in sales the scheme.
The report also recommended bringing down the minimum annual subscription of Rs6,000 for the main NPS to Rs1,000 per year so as to ease the entry barrier for investors. It would also help attract lower-end customers towards NPS.
NPS, launched for all citizens in May 2009, failed to take-off due to lack of sales ''push''. So far it has attracted only 50,000 individual buyers, out of the over 400 million workforce in the country.
According to the RBI data, transactions using credit card during the April-August period of this fiscal stood at Rs37,678.25 crore, against Rs29,024.75 crore in the same period of 2010-11
Transactions carried out using credit cards in August were worth Rs8,078.98 crore, 29.1% more than that in the same month last year. Credit card transactions in August 2010 amounted to Rs6,259.42 crore. The number of credit cards in circulation has, however, declined by over 6.7% to 1.75 crore as of 31 August 2011, from 1.88 crore at the end of the same period last year.
According to the Reserve Bank of India (RBI) data, transactions using credit card during the April-August period of this fiscal stood at Rs37,678.25 crore, against Rs29,024.75 crore in the same period of 2010-11. Meanwhile, debit card transactions were up by 37.3% in August to Rs4,560.52 crore from Rs3,321.09 crore in the corresponding month last year. There were over 25.14 crore debit cards in use in the country as of 31August 2011, up from 20 crore in the year-ago period. Transactions by debit card during April-August period were up 43.5% to Rs20,483.87 crore.
The latest jump in transactions through credit and debit cards signals continuation of growth observed in the last fiscal, according to experts. In 2010-11, transactions through credit cards in the country went up by 22.15% to touch Rs75,515.68 crore in value terms. In addition, debit card transactions went up by 46.46% last fiscal to Rs38,691.88 crore. Experts said the jump in transaction points to greater use of the electronic payments system as the people move away from old formats of payment, especially in major urban centres.
Chola MS’ networth, which was Rs257 crore in March 2011, has increased by Rs50 crore through this infusion by its promoters
Cholamandalam MS General Insurance Company Ltd, a joint venture between the Murugappa Group and Mitsui Sumitomo Insurance Group Japan has enhanced its capital base by Rs50.05 crore through a rights issue for growth and expansion plans. The networth of the company which was Rs257 crore in March 2011 has increased by Rs50 crore through this infusion by its promoters.
SS Gopalarathnam, managing director, Chola MS said, “This additional capital infused in our business will be utilised for our business growth and expansion. We are well on our way to achieve our business plan of Rs1,200 crore for the current year.”
Chola MS has achieved a gross written premium (GWP) of Rs546 crore during the April-August 2011 period thereby registering a growth 36.9% over the same period last year. In 2010-11, the company achieved a GWP of Rs968 crore. It has 96 branches and over 7,500 agents across the country.