The gold loan company Muthoot Finance Ltd has entered into a tie-up with the Pension Fund Regulatory and Development Authority (PFRDA) to offer the National Pension Scheme (NPS).
With this, Muthoot Finance becomes the only NBFC in Kerala to be approved by the PFRDA to act as a service provider for the pension plan.
The scheme is available to all citizens on voluntary basis and would include workers in the unorganised sector. The aim of the National Pension Scheme (NPS) is to promote old age income security.
George Alexander Muthoot, Managing Director Muthoot Finance said, “With our pan-India network of close to 4,000 branches in both urban as well rural areas, we will ensure that the benefit of this pension scheme reaches the maximum number of Indians.”
The salient features of the scheme are that it is open to all citizens between the ages of 18–60 years. The minimum subscription is Rs 500 per month with an option for investors to choose any growth scheme (active and auto choice).
The scheme assures regular monthly pension on attaining the age of 60 and tax benefit of up to 10 per cent of the individual’s salary (basic + DA) under Section 80CCD (2) over and above the current limit of Rs 1 lakh. The scheme also allows lumpsum repayment of funds of up to 60 per cent of the balance outstanding in the account on attaining the age of 60.