About Pension fund regulatory and development authority (pfrda)
Pension Fund Regulatory and Development Authority (PFRDA) is a regulatory body established by the Government of India on 23rd August, 2003. The primary objective of PFRDA is to promote and regulate the pension sector in India. The government has mandated PFRDA to act as a regulator for the pension sector through an executive order dated 10th October 2003.
PFRDA is responsible for regulating and supervising all pension funds in India, including National Pension System (NPS), Atal Pension Yojana (APY), and other pension schemes. It also ensures that all pension funds are managed efficiently, transparently, and in accordance with the rules and regulations set by the government.
One of the key functions of PFRDA is to develop a robust regulatory framework for pensions in India. This includes setting up guidelines for investment management, risk management, accounting standards, disclosure requirements, etc. PFRDA also works towards creating awareness about pensions among people through various initiatives such as seminars, workshops, campaigns etc.
The National Pension System (NPS) is one of the flagship schemes regulated by PFRDA. NPS was launched on January 1st ,2004 with an aim to provide retirement income security to all citizens of India including unorganized sector workers on voluntary basis . NPS offers two types of accounts: Tier-I account which is mandatory for every subscriber who joins NPS; Tier-II account which can be opened only if you have a Tier-I account already open .
Atal Pension Yojana(APY)is another scheme regulated by PFRDA which was launched on May 9th ,2015 with an aim to provide guaranteed minimum monthly pension ranging from Rs1000/-to Rs5000/- per month depending upon contribution made during accumulation phase after attaining age of sixty years or death whichever comes earlier .
Apart from regulating pensions schemes,PFRDA also plays a crucial role in promoting financial literacy and inclusion among people. It has launched various initiatives such as Swavalamban Yojana, NPS Lite, etc. to encourage people from all walks of life to save for their retirement.
In conclusion, Pension Fund Regulatory and Development Authority (PFRDA) is a regulatory body that plays a vital role in promoting and regulating the pension sector in India. Its primary objective is to ensure that all pension funds are managed efficiently, transparently, and in accordance with the rules and regulations set by the government. PFRDA also works towards creating awareness about pensions among people through various initiatives such as seminars, workshops, campaigns etc. With its robust regulatory framework and innovative schemes like NPS & APY,PFRDA has become an important player in India's financial landscape.