Pension Bulletin Volume VI Issue II

Pension Fund Regulatory and Development Authority

Chhatrapati Shivaji Bhawan, B-14/A,Qutab Institutional Area, Katwaria Sarai, New Delhi-110016

Table of Contents

Page No.

Section 1: Transfer of amount from recognized Provident Fund/Superannuation fund to National Pension System...... 2 Section 2: NPS Statistics ...... 7 i. Sector wise growth ...... 7 ii. Overall Status of State Governments ...... 13 iii. UoS Sector (All citizens) in NPS ...... 15 iv. Total amount of subscribers’ contribution under UoS (Tier-I & Tier II): ...... 15 v. Total amount of AUM under UoS (Tier-I & Tier II) ...... 16 vi. Total number of corporate, subscriber, contribution & AUM registered in Corporate Sector:...... 17 vii. Status of APY: ...... 18 viii. PFM wise Total Assets on NPS schemes ...... 19 ix. PFM wise Return on NPS Schemes ...... 20 x. Performance of NPS Schemes of Central Government & State Government Employees . 21 xi. Performance of NPS schemes for Unorganized/Private Sector ...... 21 Section 3: Circulars/Notices/Guidelines Issued/Advisory ...... 26 Section 4: Workshops /Press Release/Conference conducted ...... 31 Section 5: Macro-Economic Statistics...... 36

Section 1: Transfer of amount from recognized Provident Fund/Superannuation fund to National Pension System Indian workforce employed in organized sector is covered under the following funded pension arrangements. i) mandatory pension scheme of Employees' Provident Fund Organization of India, ii) Approved Superannuation Funds by the corporates, iii) National Pension System. i) Scheme by Employees’ Provident Fund Organisation: The Employees’ Provident Funds and Miscellaneous Provisions Act, 1952 (EPF Act) is the major social security legislation in India aimed at, inter alia, securing retirement benefits for employees. Currently, three schemes operate under the EPF Act: Employees’ Provident Fund Scheme (EPFS), Employees’ Pension Scheme (EPS) and Employees’ Deposit Linked Insurance Scheme (EDLIS). Broadly speaking, the EPF Act applies to the following entities: • Every establishment which is a factory engaged in any industry specified by the central government and in which 20 or more persons are employed; • Any other establishment employing 20 or more persons which the central government may, by notification, specify in this behalf. An employee whose salary is greater than INR15,000 per month and who is not currently a member of the EPF scheme may be excluded from the provisions of the EPF Act. This clause of salary- based exclusion does not apply to International Workers and employees working in newspaper establishments. ii) Superannuation Funds Superannuation Fund (SAF) is an employer-sponsored voluntary pension plan to facilitate pensions for employees when they retire/leave the organisation. SAF can be either a defined contribution or a defined benefit scheme, depending upon the option selected by the employer. An employer may create a SAF through a Trust, by executing a Trust Deed and have the same approved by the income-tax authorities. The Superannuation trust funds could be managed internally or through an insurance service provider which is approved by the Insurance Regulatory and Development Authority. Data on the number of SAFs in India is not consolidated; accordingly, the number of participants and the total corpus is unavailable. Due to insufficient data, it is difficult to establish the coverage and effectiveness of this pension instrument. iii) National Pension System: The Government of India (GOI) rolled out the NPS initially for government employees other than armed forces, joining service from 1st January 2004 which was later extended to all citizens of India from May 1, 2009 and Corporate sector from December, 2011.

Under NPS, two types of account are available to subscribers i.e. Tier I & Tier II; Tier I account is a pension account - where subscribers contribute his / her savings (may include employers contribution in case of Corporate sector) for retirement into a partially withdrawable account, and a Tier II account - a voluntary savings account from which subscribers are free to withdraw their savings whenever he wishes. The facility of Tier II account was made available from December 01, 2009 to All Citizens of India including Govt. employees and Corporate sector subscribers not mandatorily covered under NPS. An active Tier I account is a pre requisite for opening of a Tier II. A subscriber can open an NPS account through their DDA/PAO or through the online platform eNPSor through with any one of POPs (Point Of Presence) and get a PRAN. Subscribers can choose their own investment option and pension fund. Subscribers can operate their account from anywhere in the country, even if they change the city, job or their pension fund manager. NPS is regulated by PFRDA, with transparent investment norms and regular monitoring and performance review of fund managers by NPS Trust. A summarised comparison of NPS, approved Superannuation fund and Employees’ Provident has been provided below. Comparison between EPF, Superannuation Fund and NPS

National Pension Approved Employees Provident Fund Particulars System (NPS) Superannuation Fund (ASAF)

10% of Basic + DA Employee contribution is eligible for deduction from Subject to Maximum of employees’ taxable income Limit of contribution Rs. 1.50 Lacs Subject to Maximum of up to INR 150,000* by Employee for Additional tax deduction Rs. 1.50 Lacs tax purpose available on contribution upto Rs. 50000/- (Exclusive for NPS)

10% of Basic + DA Not Taxable up to Rs. Employer contribution up to Employer's 1,50,000 per annum 12 per cent of defined salary Contribution to the per employee. not included in employees’ Fund for tax (No Monetary Limit) taxable income. purpose Above Rs. 1.5 lac, it is treated as perquisites

in the hand of employee and taxed accordingly.

Monthly member pension Limit on Lump sum under EPS at retirement or Amount to be Minimum 40% of the withdrawal. Rest to be permanent disability. utilised for accumulated corpus. utilised for annuity purchase of Annuity However, subscriber can payment. utilise higher corpus also.

Maximum 60% of the 1/3rd of the Corpus can Lump sum withdrawal at corpus be withdrawn in lump resignation, retirement or sum in case Gratuity is death.

Lump sum paid Withdrawal 40% of the corpus is tax ½ of the corpus can be exempt from F.Y. 2016- withdrawn in case 17 gratuity is not paid.

Formation of an Registration of the Irrevocable Trust and establishment with EPFO.

appointment of Trustees Requirement for Registration with CRA by Opening of Trust operationalization providing some basic Account of scheme by the information. Corporates Decision on the fund management technique, i.e., self- managed or insurer managed.

Not required Required from Not required Income Tax concerned Income Tax Approval Authority

Subscribers may choose The accumulations are their own investments invested by the board of from three asset classes trustees of EPF, as per the i.e. corporate bonds, norms laid down by Ministry The trustees of SAF government securities of Labour and Employment, invest the funds as per and equity. The Government of India. Investment the norms laid down by investment in equity is Ministry of Finance, capped at 50 per cent. Government of India. One can also opt for life cycle funds which have pre-determined investment pattern.

In the Union Budget 2016-17, one time portability without any tax implication has been allowed to the subscriber for shifting from recognized provident funds and superannuation funds to National pension System. With the implementation of the above proposals from this Financial Year and the tax benefits available under NPS, NPS has become very attractive to the subscribers. NPS now provides the seamless facility to the subscribers of Superannuation Scheme and Provident Fund scheme to shift to NPS without any tax implication. In this context, PFRDA has come out with a circular on transfer of amount from recognized Provident Fund/Superannuation fund to National Pension System (PFRDA/2017/11/PD/3 dated 6th March 2017). In case the subscriber is interested to get his recognized provident fund/superannuation fund transferred to NPS, he may follow the below mentioned process:

 The subscriber should have an active NPS Tier I account which can be opened either through the employer (where NPS is implemented) by filling up the prescribed subscriber registration form or through the Points of Presence (POPs) (Banks/non-banks entities registered as POPs with PFRDA) or online through eNPS on the NPS Trust website.

 The subscriber presently under Govt./Private sector employment is required to approach the recognized provident fund/Superannuation Fund Trust through the current employer by giving request for transfer of his recognized provident fund/ superannuation fund to his NPS account.

 The recognized Provident Fund/Superannuation Fund Trust may initiate transfer of the Fund as per the provisions of the TRUST Deed read with the provisions of the Income Tax Act, 1961.

 The Recognised Provident Fund/Superannuation Fund may issue the cheque/draft in the name of Nodal Office with employee name and PRAN FOR Govt. employees and in the name of

POP Collection Account-NPS Trust with the subscribers name and PRAN for the private sector including All Citizen Model.

 In case of Government employees, the employee should request the recognized provident fund/Superannuation Fund to issue a letter to his present employer mentioning that the amount is being transferred from the recognized provident fund/ superannuation fund to be credited in the NPS Tier I account of the employee.

 The present employer/POP i.e. nodal office shall while uploading the fund may mention the transfer from recognized provident fund/superannuation fund in the remarks column while uploading it through arrears mode. The upload may be made as per the request letter of the ex-employer.

 In case of private sector employee including subscriber covered under All Citizen Model, the employee should request the recognized provident fund/superannuation fund to issue a letter to his present employer/POP as the case may be mentioning that amount is being transferred from the recognized provident fund/ superannuation fund to be credited in the NPS account of the employee/individual Tier I account. As per provisions of the Income Tax Act, 1961 the amount so transferred from the recognized provident fund/ Superannuation fund to NPS is not treated as income of the current year and hence not taxable. Further, the transferred recognized provident fund/superannuation fund will not be treated as contribution of the current year by employee/employer and accordingly the subscriber would not make IT claim of contribution for his transferred amount. ***

Section 2: NPS Statistics i. Sector wise growth a) The number of subscribers under NPS and APY increased from Rs. 145.42 lakhs as at the end of January, 2017 to Rs. 148.60 lakhs as end of February, 2017 i.e. by 2.19 % growth supported by a growth of 5.34 % in APY and 12.62 % in unorganized sector. During the current financial year i.e. April - February 2017, the number of subscribers has increased from 122.35 lakhs to 148.60 lakhs, registering a growth of 21.45 %. The maximum growth is witnessed in APY, in which the number of subscriber increased from 24.85 lakhs as at the end of March 2016 to 44.16 lakhs as at the end of February 2017, registering a growth of 77.71 %. UoS/All citizen subscribers have increased by 70.23% during the first 11 months of the current financial year and Corporate Sector subscribers have increased by 20.04 % during the same period.

Table No: 1. Number of Subscriber (in lakhs)

Number of Subscribers (in lakhs) Year/Month Mar-12 Mar-13 Mar-14 Mar-15 Mar-16 Jun-16 Sep-16 Oct-16 Nov-16 Dec-16 Jan-17 Feb-17 Schemes

A. CG 9.35 11.27 13.42 15.12 16.58 16.94 17.31 17.44 17.51 17.61 17.68 17.77 B. SG 11.56 16.41 20.07 26.30 29.24 30.29 31.36 31.70 31.97 32.31 32.60 32.90 Govt. sec Total (A+B) 20.91 27.67 33.49 41.42 45.82 47.23 48.67 49.14 49.49 49.92 50.28 50.67 Govt. sec % growth 32.33 21.03 23.67 10.63 10.74 12.06 12.30 12.21 12.38 12.18 11.63 C. Corporate Sector 0.17 1.43 2.62 3.73 4.74 4.95 5.21 5.32 5.39 5.51 5.57 5.69 D. All Citizen 0.57 0.70 0.79 0.87 2.15 2.37 2.61 2.69 2.75 2.93 3.25 3.66 (Corp+All Citizen) Sec Total (C+D) 0.74 2.14 3.41 4.60 6.89 7.33 7.82 8.01 8.14 8.44 8.82 9.35 (Corp+All Citizen) Sec % growth 188.52 59.65 34.87 49.77 49.64 49.54 49.24 49.07 50.45 51.55 50.68 E. NPS Lite/ Swavalamban 9.69 17.80 28.16 41.47 44.80 44.64 44.57 44.53 44.52 44.42 44.40 44.38 F. APY - - - - 24.85 29.81 34.43 36.56 37.24 39.11 41.92 44.16 Subtotal (NPS lite+APY) (E+F) 9.69 17.80 28.16 41.47 69.65 74.45 79.00 81.09 81.76 83.53 86.32 88.54 (NPS lite+APY) % growth 83.74 58.21 47.26 67.95 57.98 50.24 52.87 45.24 33.05 34.04 33.40 Grand Total (A+B+C+D+E+F) 31.33 47.61 65.06 87.49 122.35 129.01 135.49 138.24 139.38 141.89 145.42 148.60

Chart No: 1. Number of Subscriber (in lakh)

Number of subscriber (in lakhs) 160.00 60.00 145.42 148.60 139.38 141.89 135.49 138.24 140.00 129.01 122.35 50.00 51.95 120.00 36.66 40.00 100.00 34.47

39.84

36.26 35.31 80.00 33.83 30.00

65.06 87.49 31.68

in lakh in

Y % growth % Y

o - 60.00 47.61 25.77 26.41 25.97 Y 20.00 40.00 31.33 10.00 20.00

0.00 0.00 Mar-12 Mar-13 Mar-14 Mar-15 Mar-16 Jun-16 Sep-16 Oct-16 Nov-16 Dec-16 Jan-17 Feb-17

CG SG Corporate Sector All Citizen NPS Lite/ Swavalamban APY Total YoY % of Growth

Of the total subscribers, government sector subscribers are 32 % of the total subscriber, each APY and NPS – Lite constitute 30% of the subscriber and Corporate and All Citizen subscribers constitute 4 % and 2% respectively of the total subscriber.

Chart No: 2. % share of subscriber as on 25th Feb, 2017

APY CG 30% 12% SG 22%

NPA Lite 30%

Corporate Sector 4% All Citizen 2%

b) The contribution under NPS has increased from Rs. 126730 crores as at the end of January, 2017 to Rs. 129971 crores as at the end of February, 2017 i.e. by 2.56 %. During April - Feb 2017, the contributions received from subscribers have increased from Rs.95849 crores to Rs. 129971 crores, i.e. a growth of 35.60 %. The maximum growth in contribution has been witnessed in APY (227.12 %), followed by All Citizen (107.76 %) and Corporate sector (44.80 %). Table No: 2. Total Contribution (Rs. In crores)

Total Contribution (Rs. In crores ) Mar- Mar- Mar- Year/Month Mar-12 Jun-16 Sep-16 Oct-16 Nov-16 Dec-16 Jan-17 Feb-17 14 15 16 Schemes A. CG 9516 20029 27458 36329 38721 41996 43133 44123 45299 46248 47294 B. SG 3276 18364 29702 48007 52461 57474 59060 60361 61851 63431 64847 Govt. sec Total (A+B) 12792 38393 57160 84336 91182 99470 102193 104483 107150 109679 112142

61.39 48.88 47.54 42.99 38.81 38.78 38.15 37.73 37.51 36.95 Govt. sec % growth C. Corporate Sector 122 2790 4801 8010 8827 9783 10172 10487 10889 11225 11599 D. All Citizen 130 348 497 1219 1441 1650 1743 1834 2000 2250 2533 (Corp+All Citizen) Sec 252 3138 5298 9229 10267 11432 11915 12322 12889 13476 Total (C+D) 14131

(Corp+All Citizen) Sec 95.01 68.82 74.20 62.30 60.56 60.00 59.79 59.58 59.96 59.71 % growth E. NPS Lite/ 138 793 1380 1792 1900 2036 2046 2057 2068 2082 2092 Swavalamban F. APY - - - 491 743 1037 1149 1256 1386 1494 1606 Subtotal (NPS lite+APY) 138 793 1380 2283 2643 3074 3196 3313 3454 3575 3698 (E+F)

(NPS lite+APY) % 94.71 73.93 65.45 69.91 80.94 82.54 83.16 75.11 74.29 71.64 growth Grand Total 13181.95 42325 63838 95849 104092 113977 117304 120118 123492 126730 129971 (A+B+C+D+E+F)

Chart No: 3. Total Contribution (Rs. In crore)

140000 129971 120.00 123492 126730 117304 120118 120000 95.77 113977 104092 100.00 95849 100000

80.00

80000 64.01 63838 50.14 60.00 45.28

60000 growth of % Y

41.63 41.62 -

Rs in crores in Rs 41.07 40.58 40.44 39.93 o

42325 50.83 - Y

40.00 40000 25806

20000 13182 20.00

0 0.00 Mar-12 Mar-13 Mar-14 Mar-15 Mar-16 Jun-16 Sep-16 Oct-16 Nov-16 Dec-16 Jan-17 Feb-17 CG SG Corporate Sector All Citizen NPS Lite/ Swavalamban APY Total YoY % of Growth

Contribution by the government subscribers constitute 86 % of the total contribution in NPS followed by contribution of 9 % of corporate subscribers and 2 % each by NPS-Lite and All Citizen subscribers.

Chart No: 4. % share of contribution in NPS as on 25th Feb, 2017

NPS Lite APY All Citizen 2% 1% Corporate Sector 2% 9% CG 36%

SG 50%

c) The AUM under NPS have increased from Rs. 166,847crore as end of January, 2017 to Rs. 167,178 crore as at the end of February, 2017 i.e. by 0.20 % during the month of February 2017. During April –Feb 2017 of the current Financial Year, the AUM under NPS & APY has increased from Rs. 118,810 crores to Rs. 167,178 crore i.e. by 40.71 %. The year over year (Feb 2017 over Feb 2016) growth in AUM of NPS & APY combined has been 50.06%. During the month of February 2017, the highest growth in AUM in percentage terms is witnessed in unorganized sector which is 9.99 % followed by increase of 4.85% in APY. AUM under APY has more than tripled during April - February 2017, from Rs. 506 crores as end of March 2016 to Rs. 1707 crores as end of February, 2017 i.e. by 237.35 %.

Table No: 3. AUM (Rs.in crores)

AUM (Rs. In crore ) Mar- Mar- Mar- Mar- Year/Month Mar-16 Jun-16 12 13 14 15 Sep-16 Oct-16 Nov-16 Dec-16 Jan-17 Feb-17 Schemes A. CG 11256 17317 24177 36737 48135 51885 58892 60353 63146 62896 64853 64797 B. SG 3506 10748 20095 36244 57498 63565 73264 75245 78894 78532 81351 81293 Govt. sec total 14762 28065 44272 72981 105633 115450 132156 135598 142040 141428 146204 146090 (A+B) Y-o-Y Govt. sec 90.12 57.75 64.84 44.74 45.36 46.48 46.28 50.48 46.31 48.91 46.71 % growth C. Corporate 129 1120 2628 5675 9290 10390 12169 12604 13269 13379 13982 14147 Sector D. All Citizen 132 231 365 594 1273 1526 1838 1916 2008 2119 2393 2632 (Corp+All Citizen) Sec 261 1351 2993 6269 10563 11916 14007 14520 15277 15497 16375 16778 Total (C+D) Y-o-Y (Corp+All Citizen) Sec % 417.76 121.56 109.45 68.5 72.16 76.74 75.01 79.38 74.37 78.99 77.79 growth E. NPS Lite/ 140 436 839 1606 2108 2257 2547 2562 2649 2592 2641 2604 Swavalamban F. APY - - - - 506 779 1140 1255 1405 1498 1628 1707 (NPS-Lite+APY) 140 436 839 1606 2614 3036 3687 3817 4054 4090 4268 4310 Sub total (E+F) Y-o-Y (NPS- Lite+ APY) % 210.41 92.47 91.31 62.79 71.64 86.625 87.83 94.63 81.78 84.75 80.01 growth Grand Total 15163 29852 48105 80855 118810 130403 149850 153935 161370 161016 166847 167178 (A+B+C+D+E+F)

Chart No: 5. AUM (Assets under Management)

AUM (Rs.in crore)

166847 167178 180000 161370 161016 120.00 153935 160000 96.87 149850 100.00

140000 130403

120000 80.00 61.14 68.08 100000 53.70 52.17 80855 48.00 49.67 49.41 49.36 50.06 60.00

80000

Y %of growth Y

Rs. In crores In Rs. o

60000 48105 40.00 - Y 40000 29852 15163 20.00 20000 0 0.00 Mar-12 Mar-13 Mar-14 Mar-15 Jun-16 Sep-16 Oct-16 Nov-16 Dec-16 Jan-17 Feb-17

CG SG Corporate Sector All Citizen NPS Lite/ Swavalamban APY Total Y-o-Y Total % of growth

AUM of government sector constitutes 88 % of the total AUM under NPS followed by 8 % AUM of Corporate sector, 2% AUM of All Citizen and 1% each of NPS Lite and APY.

Chart No: 6. % share of AUM in NPS as on 25th Feb, 2017

All citizen model NPS Lite APY 2% 1% 1% Corporate sector 8%

Government Sector 39%

State Government 49%

12 ii. Overall Status of State Governments

There are 29 states under NPS. Tamil Nadu has adopted pension scheme under National Pension System (NPS), though it does not contribute towards the employees’ pension account under NPS. So, PFRDA have to take them on board to make contribution. Besides, West Bengal and Tripura have not adopted the NPS so far, and PFRDA is in discussion with both the states to take them on board, as end of January 2017, Uttar Pradesh has the highest number of subscribers enrolled under NPS followed by Madhya Pradesh, Rajasthan and Chhattisgarh. In terms of contribution and assets under management (AUM), Rajasthan has the highest AUM of Rs. 9,556 crore followed by Maharashtra and Madhya Pradesh. Chart No: 7. State government wise Number of subscribers in NPS (in lakh)

(As on 25th Feb, 2017)

Total No. of Subscriber(in lakh) 4.5 4.0 4.0 3.6 3.5 2.7 2.7 3.0 2.4 2.5 1.8 2.0 1.7 1.4 1.3 1.3 1.2 1.2 1.2 1.5 1.1 1.0 0.9 1.0 0.7 0.7 0.6 0.3 0.3 0.5 0.1 0.1 0.1 0.1 0.1 0.1 0.0 0.0 0.0

0.0

Goa

J &K J

Bihar

Orissa

Kerala

Sikkim

Assam

Punjab

Gujarat

Haryana

Tripura*

Manipur

Mizoram

Nagaland

Rajasthan

Karnataka

Telangana

Jharkhand

Meghalaya

TamilNadu

Utarakhand

Chhattisgarh

Maharashtra

Puduchery**

Chandigarh**

UttarPradesh

AndhraPradesh

Madhya Madhya Pradesh Himachal PradeshHimachal Total No. of Subscriber(in lakh) Arunachal Pradesh

*Executed agreement with CRA and NPS trust only for AIS officer ** Chandigarh and Puducherry status is included under the state government Status

Chart No: 8. State government wise amount of contribution in NPS (Rs.in crore)

(As on 25th Feb, 2017)

7,582 Contribution M&B (Rs.in crore) 8,000 7,000 5,668 6,000 5,0984,998 4,104 5,000 4,315 3,5633,315 2,946 2,517 4,000 3,084 2,942 2,163 1,908 2,423 3,000 2,037 1,7761,440 2,000 649 457 448 415 1,000 330 216 137 122 112 74 2 0

Goa

J & K & J

Bihar

Orissa

Kerala

Sikkim

Assam

Punjab

Gujarat

Haryana

Tripura*

Manipur

Mizoram

Nagaland

Rajasthan

Karnataka

Telangana

Jharkhand

Meghalaya

Tamil Nadu Tamil

Utarakhand

Chhattisgarh

Maharashtra

Puduchery**

Chandigarh**

Uttar Pradesh Uttar

AndhraPradesh

MadhyaPradesh

Himachal Pradesh Himachal ArunachalPradesh

Contribution M&B

*Executed agreement with CRA and NPS trust only for AIS officer ** Chandigarh and Puducherry status is included under the state government Status

Chart No: 9. State government wise Assets under Management in NPS (Rs.in crores)

As on 25th Feb, 2017

AUM (Rs. in Cr) 12,000 9,556 10,000 6,438 8,000 6,500 6,130 5,264 6,000 5,481 4,270 4,402 3,869 3,913 3,737 2,739 3,278 2,514 4,000 2,973 2,731 2,2031,774 2,000 742 547 524 510 419 265 148 144 124 85 2 0

Goa

J & K & J

Bihar

Orissa

Kerala

Sikkim

Assam

Punjab

Gujarat

Haryana

Tripura*

Manipur

Mizoram

Nagaland

Rajasthan

Karnataka

Telangana

Jharkhand

Meghalaya

Tamil Nadu Tamil

Utarakhand

Chhattisgarh

Maharashtra

Puduchery**

Chandigarh**

Uttar Pradesh Uttar

AndhraPradesh

MadhyaPradesh

Himachal Pradesh Himachal ArunachalPradesh AUM(Cr)

*Executed agreement with CRA and NPS trust only for AIS officer ** Chandigarh and Puducherry status is included under the state government Status

14 iii. UoS Sector (All citizens) in NPS

As end of February 2017, 76 PoPs with 65,540 service providers are registered with PFRDA to provide NPS services to citizens. While the registration and contribution upload of Government and Government bodies employees is done by their respective Pay & Account offices, the private and the unorganized sector employees are serviced through the PoPs which are banks & non-banking finance companies. As on 25th February 2017, the total number of active accounts of All Citizen subscribers under Tier I is 365,771 against 325,253 in January 2017. As at the end of February, 2017, there are 73,277 subscribers having Tier II accounts under NPS against 61,568 accounts as end of January, 2017. Table No: 6. Total number of PoP & PoP-SP & subscribers in CRA

Mar- Apr- May- Aug- Sep- Nov- Dec- Feb- Registered PoPs Jun-16 Jul-16 Oct-16 Jan-17 & PoP-SP in CRA 16 16 16 16 16 17 17 17 Total number of registered PoPs in CRA 70 72 72 71 73 74 75 76 76 76 76 76 Total number of registered PoP- SP in CRA 55,580 55,644 55,647 56,065 56,893 56,908 56,959 56,977 57,063 57,489 58,214 65,540

Chart No: 10. Total number of active account subscriber in CRA under Tier-I & Tier-II

400,000 365,771 350,000 325,253 292,564 274,995 300,000 260,769 268,543 245,384 253,532 225,605 231,056 237,471 II 250,000 - 204,536

200,000 I & Tier & I

- 150,000

Tier 100,000 61,568 73,277 42,739 46,062 49,340 51,309 51,761 55,255 50,000 31,002 33,091 34,450 35,283 0

Total no.of active account subscriber in no.of Total account active Mar-16 Apr-16 May-16 Jun-16 Jul-16 Aug-16 Sep-16 Oct-16 Nov-16 Dec-16 Jan-17 Feb-17

Tier I Tier II iv. Total amount of subscribers’ contribution under UoS (Tier-I & Tier II):

The contribution to Tier-I under UoS (All citizen) has increased from Rs. 1,966 crores as on 28th January, 2017 to Rs 2,232 crores as on February, 2017. The contribution received under Tier II as end

15 of February, 2017 is Rs. 300 crores against the contribution of Rs. 285 crores as end of January, 2017. During April - February 2017, the contributions under All Citizen Tier I NPS have increased from Rs. 962 crores to 2,232 crores i.e. a growth of 132.02 % and Contribution under Tier II NPS has increased from Rs. 161 crores as end of March 2016 to Rs. 300crores as at the end of February, 2017 i.e. by 86.34 %. Chart No: 11. Contribution of subscribers under (UoS) in NPS under Tier-I &Tier-II (Rs. in crores)

2500 2232 1966 2000 1733 1586 1430 1507 1500 1318 1372 1170 1213 1257 962

1000 Rs.in Crore Rs.in

500 266 285 300 161 172 178 184 193 205 220 236 249 0 Mar-16 Apr-16 May-16 Jun-16 Jul-16 Aug-16 Sep-16 Oct-16 Nov-16 Dec-16 Jan-17 Feb-17

Tier-I Tier-II v. Total amount of AUM under UoS (Tier-I & Tier II)

The AUM for UoS under Tier- I as end of February, 2017 was Rs. 2316 crores against the AUM of Rs. 2090 crores as end of January 2017. During April – Feb 2017, the AUM increased from Rs. 1103 crores to Rs. 2316 crores, i.e. 109.97%. The AUM of Tier-II has increased from Rs.304 crores as end of January 2017 to Rs. 316 crores in the month of February, 2017. During April – February 2017, Tier II AUM increased from Rs. 170 crores to Rs. 316 crores, i.e. 85.74 %.

Chart No: 12. AUM of individual subscriber (UoS) in NPS under Tier-I &Tier-II (Rs. In crores)

2500 2316 2090 2000 1838 1739 1596 1659 1453 1513 1500 1333 1226 1287 1103 1000

500 256 269 280 304 316 170 179 187 193 210 224 242

0 Mar-16 Apr-16 May-16 Jun-16 Jul-16 Aug-16 Sep-16 Oct-16 Nov-16 Dec-16 Jan-17 Feb-17

Tier I Tier II vi. Total number of corporate, subscriber, contribution & AUM registered in Corporate Sector:

The total number of corporates registered under NPS has increased from 3,064 as on January 2017 to 3,179 as on February 25th 2017. During the first 11 months of current FY 2016-17, number of corporates registered under NPS has increased from 2,354 to 3,179.

Table No: 7. Total number of corporate registered in Corporate Sector:

Mar- Apr- May- Jun- Jul- Aug- Sep- Oct- Nov- Dec- Jan- Feb- 16 16 16 16 16 16 16 16 16 16 17 17

2,354 2,426 2,474 2,554 2,652 2,728 2,808 2,873 2,911 2,991 3,064 3,179

Chart No: 13. Total number of subscriber, contribution & AUM registered in Corporate Sector

16000 557450 569374 600000 538759 550538 532268 14147

521083 504019 513132 13982 14000 487431 495452 13269 13379 472076 479487 12604 12169 500000 11661 11599 12000 11206 10889 11225 10487 10048 10390 10172 9677 9484 9783 400000 10000 9124 8827 9168 8268 8540 7873 8000 300000

6000 Subscriber 200000 4000 100000

2000 AUM & CONTRIBUTION (Rs. In Thousand) In (Rs. CONTRIBUTION & AUM

0 0 Mar-16 Apr-16 May-16 Jun-16 Jul-16 Aug-16 Sep-16 Oct-16 Nov-16 Dec-16 Jan-17 Feb-17 Contribution amount in corporate sector(Rs.in crore) Total AUM in corporate sector (Rs.in crore) Total number of subscriber registered in Corporate Sector

As on 25th February 2017, the number of Corporate registered under NPS is 3,179 with 569,374 subscribers. The contribution received from the corporate subscribers as on 25th February, 2017 was Rs.11, 599 Crores and AUM was Rs. 14,147 Crores. As on 25th February 2017, AUM per subscriber for Corporate Sector is Rs.2.48 lakhs. vii. Status of APY:

The subscriber base of Atal Pension Yojana has reached 44.16 lakhs as on February 28th 2017 from 24.85 lakhs as end of March 2016. AUM under APY has increased from Rs.1628 crores as at the end of January, 2017 to Rs. 1707 Crores as at the end of February 2017. Table No. 8. Status of APY

Year/Month Mar-16 Jun-16 Sep-16 Oct-16 Nov-16 Dec-16 Jan-17 Feb-17

Subscribers 2484895 2981063 3443079 3655938 3723994 3911100 4192355 4416196

Chart No: 14. Total number of subscriber, contribution & AUM registered in APY

1800 4416196 5000000 4192355 1600 3911100 4500000 3723994 3655938 4000000 1400 3443079 1707 3267259 1628 3143750 1498 3500000 1200 2981063 2857868 1405 2620143 1606 3000000 1000 2484895 1255 1140 1386 1494 1014 2500000 800 922 1256 1167 2000000 779 1042 600 686 938

1500000 subscriber of Number 595 865 506 748 400 1000000 Contribution &AUM (Rs.in crores) (Rs.in &AUM Contribution 592 677 491 200 500000

0 0 Mar-16 Apr-16 May-16 Jun-16 Jul-16 Aug-16 Sep-16 Oct-16 Nov-16 Dec-16 Jan-17 Feb-17

Contribution (Rs.in crore) AUM (Rs.in crore) Subscribers (in lakh)

viii. PFM wise Total Assets on NPS schemes

Table No: 9. Pension Fund wise Assets under Management (Rs.in crores)

Year/Month Mar-16 Jun-16 Sep-16 Dec-16 Jan-17 Feb-17 PFs SBI 45846.16 50373.85 57307.78 61125.39 63306.11 63498.10 UTI 35344.97 39571.91 45061.98 48417.98 50104.56 50215.07 LIC 35751.53 39491.36 44768.13 47689.28 49358.53 49553.03 KOTAK 172.69 197.87 232.24 254.55 276.08 286.48 RELIANCE 701.13 830.96 985.14 1109.88 1220.38 1299.26 ICICI 111.23 124.86 138.96 147.09 155.14 159.16 HDFC 376.24 483.13 622.26 773.5 878.41 972.43 Source: NPST. Website: www.npst.org.in

Table No: 10. Scheme wise Assets under Management (Rs.in crores)

Pension Funds→ (SBI+LIC+KOTAK+HDFC+ICICI+RELIANCE+UTI) (Assets Rs in crores )

Total Assets Mar Mar- Mar- Mar- Mar- Mar- Jun- Sep- Oct- Nov- Dec- Jan- Feb-

(Rs. In crore) -11 12 13 14 15 16 16 16 16 16 16 17 17

Scheme↓ 726 1125 1731 2418 3673 4813 5239 5896 6035 6319 6289 6484 6495 CG 6 6 3 8 6 5 8 3 4 9 6 1 4

122 1082 2021 3639 5769 6453 7379 7548 7929 7877 8167 8183 SG 3555 9 3 1 6 3 7 9 0 5 4 1 0 1018 1026 Corporate CG - - 693 1810 4105 6805 7692 8924 9189 9740 9782 1 1 E 28 64 168 356 655 1181 1443 1676 1755 1744 1821 2050 2256

TIER I C 20 48 129 247 470 888 1008 1177 1229 1308 1349 1453 1523

G 29 78 245 409 771 1325 1521 1786 1856 2018 2023 2162 2235 NPS Swavalamba 3 141 436 844 1606 2108 2279 2547 2562 2647 2592 2638 2607 n E 4 7 14 26 44 60 72 87 91 91 96 107 116

TIER II C 3 8 16 24 38 55 61 76 80 85 88 94 96

G 4 7 13 20 35 54 63 81 86 95 96 103 105 Source: NPST. Website: www.npst.org.in ix. PFM wise Return on NPS Schemes Table No: 11. Returns since inception (in %) As on 28th Feb, 2017

Pension Funds→ SBI UTI LIC KOTAK RELIANCE ICICI HDFC

CG 10.43 10.03 10.11

SG 10.03 10.09 10.21

Corporate-CG 10.60 10.77

E 9.22 11.35 13.27 10.34 10.47 11.54 15.91 TIER I C 11.22 9.84 11.79 11.16 9.72 11.20 11.82 G 10.09 8.75 12.51 8.97 8.65 9.04 11.19 E 8.81 9.13 8.09 9.42 8.99 8.93 11.25 TIER II C 10.88 10.04 10.06 9.88 9.45 11.13 9.96 G 10.33 9.90 12.82 8.84 8.98 9.21 11.83 NPS Swavalamban 11.10 10.93 10.91 11.17 Source: NPST. Website: www.npst.org.in

Central Government: 1-Apr-08 State Government: 25-Jun-09 Swavalamban: (SBI, LIC, UTI,): 4-Oct-10, (Kotak PF): 31-Jan-12 Corporate (Central Govt. Pattern): 5-Nov-12 Scheme – [E, C, G] (Tier-I) - (SBI, UTI, ICICI, RELIANCE, KOTAK): 1-May-09, (LIC): 23-Jul-13, (HDFC PF): 1-Aug-13 Scheme – [E, C, G] (Tier-II) - (SBI, UTI, ICICI, RELIANCE, KOTAK): 14-Dec-09, (LIC): 12-Aug-13, (HDFC PF): 1-Aug-13

x. Performance of NPS Schemes of Central Government & State Government Employees

Table No: 12. Performance: Scheme CG (As on February 28th, 2017)

SCHEME CG PFM Financial Year Return (%) Return (%) FY FY FY FY FY FY FY 2009- 2010- 2011- 2012- 2013- 2014- 2015- 1-Yr 2-Yr 3-Yr 5-Yr 10 11 12 13 14 15 16 LIC 12.27 8.3 5.8 12.06 5.93 18.96 5.99 15.57 8.63 12.86 10.6 SBI 8.88 8.05 5.81 12.75 3.92 19.38 6.47 15.44 8.81 13.05 10.51 UTI 9.27 8.45 5.52 12.26 5.04 18.58 6.24 15.76 8.86 12.85 10.52 Source: NPST. Website: www.npst.org.in

Table No: 13. Performance: Scheme SG (As on February 28th, 2017)

Scheme SG Financial Year return (%) Return (%) PFM FY FY FY FY FY FY 2010- 2011- 2012- 2013- 2014- 2015- 1-Yr 2-Yr 3-Yr 5-Yr 11 12 13 14 15 16 LIC 10.77 6.68 12.8 5.87 19.4 5.97 15.58 8.64 13 10.83 SBI 9.88 6.8 13 3.83 19.8 6.62 15.62 8.92 13.28 10.75 UTI 11.34 6.04 13.2 4.7 18.8 6.3 15.7 8.87 12.91 10.67 Source: NPST. Website: www.npst.org.in

21 xi. Performance of NPS schemes for Unorganized/Private Sector Table No: 14. Performance: Scheme E- Tier I (As on February 28th, 2017)

Scheme E- Tier I Financial Year Return % Return (%) PFM FY FY FY FY FY FY 2010- 2011- 2012- 2013- 2014- 2015- 1-Yr 2-Yr 3-Yr 5-Yr 11 12 13 14 15 16 LIC 27.51 -7.91 31.18 2.39 13.63 - SBI 8.05 -7.18 8.24 20.68 28.37 -7.16 31.54 2.45 14.4 12.64 UTI 8.35 -10.6 7.42 21.29 29.74 -6.72 32.19 3.53 15 13 ICICI 11.8 -7.75 9.05 21.18 28.65 -7.37 31.7 2.68 14.59 12.88 KOTAK 11.9 -10.2 11.52 19.48 28.41 -6.88 30.65 2.99 14.66 12.69 RELIANCE 10.8 -10.5 7.75 20.2 28.3 -7.26 28.66 1.99 14 12.04 HDFC - - - - 28.63 -7.47 32.53 2.85 14.69 - IDFC 8.89 -9.32 ------Source: NPST. Website: www.npst.org.in

Table No: 15. Performance: Scheme E- Tier-II (As on February 28th, 2017)

Scheme E- Tier II Financial Year Return % Return (%) PFM FY FY FY FY FY FY 2010- 2011- 2012- 2013- 2014- 2015- 1-Yr 2-Yr 3-Yr 5-Yr 11 12 13 14 15 16 LIC 21.46 -7.29 31.03 3.14 10.37 - SBI 7.86 -7.51 8.26 20.37 28.64 -7.13 31.3 2.38 14.45 12.59 UTI 10.16 -10.74 7.63 20.51 31.04 -6.54 30.6 3.08 15.27 12.92 ICICI 10.12 -10.41 9.79 21.14 28.66 -7.39 31.65 2.65 14.57 12.49 KOTAK 11.66 -9.8 11.33 19.5 28.12 -6.67 30.27 3 14.57 12.6 RELIANCE 5.37 -10.37 7.79 20.67 28.25 -7.22 28.71 1.96 14.12 12.11 HDFC - - - - 22.77 -7.17 32.82 3.29 11.59 - IDFC 7.05 -9.46 ------Source: NPST. Website: www.npst.org.in

Table No: 16. Performance: Scheme C- Tier I (As on February 28th 2017)

Scheme C- Tier I Financial Year Return % Return (%) PFM FY FY FY FY FY FY 2010- 2011- 2012- 2013- 2014- 2015- 1-Yr 2-Yr 3-Yr 5-Yr 11 12 13 14 15 16 LIC 15.43 15.43 12.76 10.12 12.22 - SBI 12.66 11.07 14.27 5.24 15.7 8.72 13.32 9.93 12.24 11.05 UTI 9.2 10.19 13.41 6.14 15.09 8.83 13.08 9.99 12.05 10.7 ICICI 9.41 11.43 14.22 6.22 15.72 9.77 13.76 10.89 12.76 11.4 KOTAK 10.86 10.19 15.01 5.77 15.22 9.46 13.94 10.59 12.55 11.34 RELIANCE 8.12 8.13 13.89 6.89 15.04 9.12 13.39 10.21 12.26 11.1 HDFC - - - - 15.2 15.2 13.33 10.29 12.25 - IDFC 6.26 9.15 ------Source: NPST. Website: www.npst.org.in

Table No: 17.Performance: Scheme C- Tier II (As on February 28th 2017)

Scheme C- Tier II Financial Year Return % Return (%) PFM FY FY FY FY FY FY 2010-11 2011- 2012- 2013- 2014- 2015- 1-Yr 2-Yr 3-Yr 5-Yr 12 13 14 15 16 LIC 12.37 8.26 13.08 11.18 10.79 - SBI 14.46 10.7 12.69 4.15 15.62 8.6 13.05 9.91 12.08 10.38 UTI 7.62 11.4 12.95 5.75 15.3 8.57 12.89 9.77 11.98 10.48 ICICI 10.74 12.3 13.6 6.1 15.91 9.46 13.58 10.74 12.69 11.23 KOTAK 7.2 9.7 13.15 5.76 15.19 8.61 13.84 10.19 12.17 10.7 RELIANCE 7.28 7.86 12 6.04 14.97 8.8 12.75 9.92 11.98 10.48 HDFC - - - - 9.51 8.94 13.62 10.62 10.06 - IDFC 6.02 10 ------Source: NPST. Website: www.npst.org.in

Table No: 18. Performance Scheme G- Tier I (As on February 28th 2017)

Scheme G- Tier I Financial Year Return % Return (%) PFM FY FY FY FY FY FY 2010- 2011- 2012- 2013- 2014- 2015- 1-Yr 2-Yr 3-Yr 5-Yr 11 12 13 14 15 16 LIC 20.93 6.5 15.96 9.42 13.87 - SBI 12.25 5.46 13.48 0.23 20.73 7.16 14.56 8.87 13.43 10.07 UTI 12.52 3.75 13.57 0.93 20.18 7.16 13.32 8.59 12.99 9.92 ICICI 7.71 6.07 13.84 1.51 20.75 6.97 14.3 8.72 13.28 10.31 KOTAK 9.14 6.14 13.61 0.84 19.63 7.54 15.05 9.42 13.41 10 RELIANCE 7.65 5.63 13.74 0.89 20.24 7.22 14.86 9.01 13.31 10.15 HDFC - - - - 19.88 6.77 14.14 8.67 12.89 - IDFC 6.97 5.9 ------Source: NPST. Website: www.npst.org.in

Table No: 19. Performance Scheme G- Tier II (As on February 28th 2017) Scheme G- Tier II Financial Year Return % Return (%) PFM FY FY FY FY FY FY 2010-11 2011- 2012- 2013- 2014- 2015- 1-Yr 2-Yr 3-Yr 5-Yr 12 13 14 15 16 LIC 19.94 6.75 15.27 9.21 13.38 - SBI 11.82 5.31 13.47 0.39 20.57 7.28 14.57 8.97 13.47 10.08 UTI 16.44 3.81 13.52 0.51 20.27 7.28 13.68 8.72 13.16 9.88 ICICI 6.43 6.36 14.36 1.12 20.7 7.05 14.24 8.7 13.25 10.36 KOTAK 6.4 5.37 12.86 1.18 19.9 7.66 14.32 9.3 13.28 10.09 RELIANCE 4.68 5.76 13.68 0.87 20.44 7.37 14.59 9 13.34 10.15 HDFC - - - 19.45 6.83 13.96 8.62 12.73 - IDFC 6 7.22 - - - - Source: NPST. Website: www.npst.org.in

Table No: 20. Performance: Scheme NPS -Lite (As on February 28th 2017) Scheme NPS-Lite FY Return % Return (%) PFM FY 2011- FY 2012- FY 2013- FY 2014- FY 2015- 1-Yr 2-Yr 3-Yr 5-Yr 12 13 14 15 16 LIC 10.1 13.02 5.91 19.52 5.72 15.9 8.59 13.08 10.9 SBI 8.7 13.83 4.11 19.52 6.3 15.92 8.75 13.12 10.8 UTI 8.55 13.18 4.9 19.2 5.83 15.94 8.53 12.9 10.71 KOTAK 14.58 5.18 19.23 6.37 15.36 8.83 13.16 10.92 Source: NPST. Website: www.npst.org.in

Table No: 21. Performance: Scheme Corporate- CG (As on February 28th 2017)

Scheme Corporate CG FY Return % Return (%) PFM FY 2013-14 FY 2014-15 FY 2015-16 1-Yr 2-Yr 3-Yr 5-Yr LIC 5.63 19.53 5.72 16.25 8.57 13.15 - SBI 3.31 19.99 6.54 15.86 8.91 13.37 - *Source: NPST. Website: www.npst.org.in

Section 3: Circulars/Notices/Guidelines Issued/Advisory

CIRCULARS i) Proper checks and controls in collection of NPS contributions (PFRDA/2017/2/PoP/1). Dated 03rd Jan, 2017

Point of presence (PoP) is an important intermediary under the NPS architecture, which is entrusted with the most important assignment of on boarding of subscribers under NPS and providing them various services under it. In order to provide maximum convenience and to ensure ease of transaction to the subscribers, the Point of presence (PoPs) are also providing new options to the subscribers for remittance of NPS contributions to the collection account maintained at their end. The PoPs are now-a -days collecting NPS contributions through various channels including online payment gateways, keeping in view the thrust on digital modes of payment. In this direction, it is also important that all the NPS contributions collected by a PoP through various modes are accounted for and essential details of the NPS subscribers are captured properly. All the PoPs must ensure that proper checks controls and mechanisms are in place so that no unaccounted funds are collected without details of the corresponding PRANs. In case, details of the PRANs are not captured at the time of collecting NPS contributions the same may result in building of a pool of unreconciled amount, which is highly unwarranted and detrimental to the interest of the subscribers, leading to high number of grievances. Besides, reconciliation of such amounts without details of corresponding PRANs will be an uphill task in the future. The PoPs also need to ensure that in case, they provide the facility to their NPS subscribers for remittance of NPS contributions directly to the collection accounts of the PoPs, the NPS contributions are not collected without capturing details of the PRAN in which the same have to be credited. All the Point of Presence (PoPs) are advised to disseminate information regarding this to all the PoP- SPs for ensuring compliance at their level. ii) Circular on Reactivation of frozen PRANs where 20% of the accumulated pension corpus has been withdrawn as lump sum but subscriber subsequently reemployed in establishments covered under NPS (PFRDA/2017/3/CSG/1) Dated 01st Feb,2017. 1. The Pension Fund Regulatory and Development Authority has been receiving requests from government employees subscribing to NPS who had on premature leaving/change of employment discontinued their NPS account, and in some case, had also withdrawn the lump sum amount as applicable under the Exit under NPS Regulations, to reactivate the PRAN account/open a new PRAN on reemployment/ reinstalment in establishment which are covered under the NPS. In some cases subscribers had withdrawn 20%lump sum amount in their PRANs which were later deactivated. Later

26 they got new PRANs generated due to fresh employment, which also got deactivated as these being duplicate PRANs. Thus, in such a scenario the subscriber could not use either the previous PRAN or the new PRAN. 2. In this context, it may be clarified that PRAN is unique and portable across locations and employment. The same PRAN should continue throughout the working tenure of the employee/subscriber. As currently applicable, the subscriber is required to intimate his previous PRAN to the employer on joining new service. The basic purpose of NPS is to provide social security to the subscribers during their old age. If subscribers withdraw, inspite of the fact that they can continue in the system up to their superannuation from service or 60years of age. The very purpose of NPS is defeated. 3. With a view to preserve the accumulation for pension and alleviate the hardship during old age, all NPS subscribers are advised to continue in the system with the same/first PRAN till the subscriber attains the age of superannuation or 60 years even if the subscriber has become jobless temporarily and withdrawn 20% from his/her PRAN. The 20% withdrawn amount will be considered as a special withdrawal and same PRAN would be activated on the employees joining a new employer and making contribution to the NPS. iii) Circular on Operationalization of M/s Karvy Computershare Private Limited as second CRA under NPS (PFRDA/2017/5/CRA/2) Dated 09th Feb, 2017

Reference is drawn to our circular no. PFRDA/2017/1/CRA/1, dated January 03rd, 2017 on operationalization of Karvy Computershare Private Limited as second Central Record Keeping Agency (CRA) for NPS. The Authority has decided to allow M/s Karvy Computershare Private Limited to start its operations for servicing of accounts sourced through e-NPS module of NPS Trust wherein the subscriber would be provided an option to choose between NSDL e-governance Ltd (1st CRA) and M/s Karvy Computerized Pvt. Ltd (2nd CRA) with effect from February 15, 2017 and other distribution channels thereafter. It has been decided that M/s Karvy Computershare would be allowed to service the new accounts till March 31st 2017 and thereafter it would be allowed to function as a full-fledged CRA with interoperability functionality providing for option to shift for existing subscribers of NPS from April 01st 2017 onwards. Under sub regulation 4 of regulation 3 the CRA Regulations, the allocation of the subscribers between the existing Central Record Keeping Agency and the other Central Record Keeping Agency or agencies, if appointed shall be based on a transparent criteria and process as may be notified by the Authority from time to time having regard to the subscribers’ interest. Accordingly, the criteria of allocation of subscribers are mentioned as under:

In case where there are employee-employer relationship, including corporate, if the CRA charges are being borne by the employer, the decision to select the CRA shall rest with the employer, unless they specifically delegates the option to individual employees and in all other cases, the choice of selection of CRA will rest with the employee/ subscriber under NPS. In case of voluntary subscribers (without existence of any employer-employee relationship) the option to choose a CRA rests with the subscriber in general. In case of subscribers registered under Atal Pension Yojana, the respective Government will choose the CRA rendering the services. In case of NPS-Lite subscribers the aggregators will have the option to choose the CRA. The charge structure for NPS regular and NPS Lite subscribers is provided hereunder the information of all concerned:

S.N Service charge M/s NSDL e-governance M/s Karvy Computerised Pvt. Ltd head Infrastructure Ltd (1st CRA) (2nd CRA) NPS Regular NPS-Lite/APY NPS Regular NPS-Lite/APY (Rs.) (Rs.) (Rs.) (Rs.)

1 PRA opening 50 15 39.36 15 charges 2 PRA Annual 190 40 57.63 14.4 maintenance charges 3 Transaction 4 NIL 3.36 NIL charges

Further the charge structure with effect from 01st April, 2017 would be as under:

S.N Service charge M/s NSDL e-governance M/s Karvy Computerised Pvt. Ltd head Infrastructure Ltd (1st CRA) (2nd CRA) NPS Regular NPS-Lite/APY NPS Regular NPS-Lite/APY (Rs.) (Rs.) (Rs.) (Rs.) 1 PRA opening 40 15 39.36 15 charges 2 PRA Annual 95 25 57.63 14.4 maintenance charges 3 Transaction 3.75 NIL 3.36 NIL charges

This is issued for the information of all concerned.

28 iv) Circular on Charges and incentive structure under NPS w.e.f. 01/04/2017 (PFRDA/2017/5/SWM/1) Dated 20th Feb, 2017

1. As per the existing revenue structure for Aggregators under NPS-Lite/Swavlamban, till 2016-17 the Aggregators are paid Rs. 100/- for opening/servicing every persistence NPS-Lite/Swavlamban account, provided the contribution deposited by the subscriber is between Rs. 1000/- to Rs. 12000/- in a financial year. However the incentive is applicable till 31.03.2017 only. 2. In order to continue the incentives for the Aggregators even after 31.03.2017 so that they continue to service the subscriber base of NPS-Lite attached to them, the following charge and incentive structure has been approved by PFRDA and will be applicable w.e.f. 01.04.2017:

Charges under NPS-Lite/Swavlamban w.e.f 01.04.2017* Method of leaving charges The charges for any subsequent transaction under NPS- Through unit deduction by NSDL/CRA at the Lite/Swavlamban @0.25% of the total contribution end of the financial year. deposited by the subscriber in NPS-Lite/Swavlamban in a financial year subject to a minimum of Rs. 20/-.

Any other transaction not involving a contribution from subscriber @ Rs. 10/- per transaction.

3. All the Aggregators are hereby advised to take note of the same and also disseminate information regarding the same to the associated nodal offices including facilitators. 4. It is further advised that an Aggregator is not permitted to collect any charge or fee upfront from subscriber. In case of any violation of these instructions suitable action will be initiated as envisaged in the PFRDA (Aggregator) Regulations, 2015. v) Constitution of Subscriber Education and Protection Fund (SEPF) Committee (PFRDA/2016/27/HR/3) Dated 21st Feb, 2017

In partial modification of Circular No. PFRDAl2016/24/HR/2 dated 7th December, 2016, Sh. Rajesh Kumar, Chief Controller of Accounts (Home), Ministry of Home Affairs has been nominated to the Subscriber's Education and Protection Fund Committee in place of Sh. Bhupal Nanda. The rest of the aforementioned circular dated 7th December, 2016 remains unchanged

29 vi) Notice- Appointment Of Training Institute For Imparting Training On Pension Schemes Regulated/Administered By Pension Fund Regulatory And Development Authority (PFRDA) For North West Zone (21-02-2017)

PFRDA has appointed IL & FS Skill Development Corporation Ltd, 2 nd Floor, DND Flyway, Near Toll Plaza,Noida-201301 as the training institute to create mass awareness and impart training on pension schemes under National Pension System and Atal Pension Yojana to the employees of Points of Presence (POPs) /POPService Providers /APY-Service Providers/Corporates/ Nodal officers of Central & State Governments/ Nodal officers of Central and State Autonomous Bodies/ Retirement advisors and other stakeholder registered with PFRDA, in the North West Zone of the country. The zone comprises of the following States and UTs: Jammu and Kashmir, Himachal Pradesh, Uttar Pradesh, Uttaranchal, Punjab, Haryana, Bihar, Jharkhand, Chandigarh, Delhi, Goa, Gujarat, Maharashtra, Madhya Pradesh, Rajasthan, Chhattisgarh, Daman and Diu, Dadra and Nagar Haveli. With a view to draw a detailed training schedule, all the intermediary offices have been requested to furnish the list of nominees/persons to be trained to the appointed training agency to Ms Alfa Mary +91-98336-83265 and Mr Avinash Goregaonkar +91-9022992993 at the following email id : [email protected] under advice to PFRDA. It is intended to have at least 50-60 participants in each session of 3-4 hours duration and conduct approximately 1610 training sessions and train 64500 participants in the NW zone over the next 12 months. On receipt of the nominations, the agency would be establishing contact with the nominated nodal officials for further co-ordination and logistics. vii) Advisory for all the Pension Fund and Custodian regarding investments in Mutual Fund schemes (14-02-2017)

1. PFRDA has appointed SHCIL as custodian of Securities for custody of the securities pertaining to the funds under management under all schemes of NPS/APY. 2. It is observed that some Pension Funds are not keeping some of the securities particularly mutual fund units with the appointed custodian. 3. It is advised that all Pension Funds shall maintain the holding in mutual funds with the appointed custodian. 4. Pension funds are further advised to convert the existing holdings of mutual funds units in de-mat form in coordination with SHCIL under confirmation to the NPS Trust and the Authority.

Section 4: Workshops /Press Release/Conference conducted /Awards i) PFRDA conducts Strategy Meeting with Service Providers under APY / NPS at Bangalore (22-Feb-2107)

The APY was launched by Honourable Prime Minister of India on 09th May, 2015 and became operational from 1st June, 2015. APY is available for all citizens of India in the age group of 18-40 years. Under the APY, the subscribers would receive a minimum guaranteed pension of Rs. 1000 per month, Rs. 2000 per month, Rs. 3000 per month, Rs. 4000 per month, Rs. 5000 per month, at the age of 60 years, depending on their contributions, which itself would vary on the age of joining the APY. There are more than 43 lacs subscribers registered in the scheme till date. 2. PFRDA had conducted review cum strategy meeting on 10.02.2017 at Bangalore & on 13.02.2017 at Chennai for Public Sector Banks, Private Sector Banks and Regional Rural Banks and POPs having their head office in southern part of India. 3. Shri A G Das, Chief General Manager, PFRDA had addressed the meeting where Chairmen/Senior officials of the Banks/RRBs were present. A review on the past and current performance of the banks vis-a-vis their target for last and current financial year was conducted. The APY service providers- Banks had shared their action cum strategy plan to meet stipulated target in last quarter of the FY 2016-17, this activity was performed to highlight the importance of Atal Pension Yojana (an old age income security scheme of Govt. of India) and to address the issues in promoting the scheme to grass

root level.

4. PFRDA had awarded best performing branches/banks in the meeting for their outstanding performance in various campaigns organised by DFS/PFRDA :

5. PFRDA had offered capacity building assistance for Staffs/BCs of the banks and other promotional material assistance as well. PFRDA expects good number of enrolments in last quarter of FY 2016-17. ii) Budget 2017- New Benefits announced for NPS Subscribers In a bid to provide further impetus to the National Pension System (NPS), the following provisions have been introduced in the Finance Bill 2017 laid down in the Parliament today. (i) Tax-exemption to partial withdrawal from National Pension System (NPS) The existing provision of section 10(12A)of the Income Tax Act, 1961 provides that payment from National Pension System (NPS) to a subscriber on closure of his account or opting out shall be exempt up to 40% of total corpus at the time of withdrawal . The amount utilized for purchase of annuity is also tax exempt. At the time of normal exit, 40% of the total corpus is mandatorily required to be purchased for annuity. The subscriber has the option to use higher amount for purchase of annuity. In order to provide further relief to the subscriber of NPS, it has been proposed to insert a new clause (12B) in the section 10 of Income Tax Act, 1961 to provide exemption on partial withdrawal not exceeding 25% of the contribution made by an employee in accordance with the terms and conditions specified under Pension Fund Regulatory and Development Authority Act, 2013 and regulations made there under. This benefit will be effective on partial withdrawal made by the subscriber after 1st April 2017. (ii) Further, Contribution up to 20% of the Gross Income of the Self-employed individual (Individual other than salaried class) will be deductible from the taxable income under Section 80CCD (1) of the Income Tax Act, 1961, as against 10% earlier. This is with a view to provide parity between a salaried employee and a self-employed, This benefit will be available on contribution made by the self-employed persons on or after 1st April 2017.

This increased limit for tax benefit will help the self-employed individuals, to save taxes on higher contribution in NPS and thereby properly plan for their old age income security. Additional tax deduction on investment upto Rs. 50000/- under Section 80CCD (1B) will continue to remain the same for all NPS subscribers whether salaried or self-employed. iii) NPS Awards to POPs for FY 2016-17 (22-Feb-2017)

Based on the performance of POPs in terms of subscribers registered and activated by POPs during the FY 2016-17, PFRDA has decided to award the POPs. Following are the proposed awards and the parameters based on which the awards would be given:

1 Best POP- All Citizen subscriber Maximum subscriber registration. Eligibility: Public registration (Open to all POPs) Sector Banks: Minimum 5,000 NPS accounts Private 1.(during the period 01-04-2016 to Sector Banks: Minimum 4,000 NPS accounts Non- 31-03- 2017) Banks: Minimum 3,000 NPS accounts

2 Best POP- NPS Corporate- Max. Number of corporate subscribers registered Corporate Subscriber Registration (POPs own employees as subscribers will not be 1.(during the period 01-04-2016 to taken into consideration for the count. Also, 31-03- 2017) Corporates under Direct Upload model will be excluded in this) Eligibility: Public Sector Banks: Minimum 5,000 NPS accounts Private Sector Banks: Minimum 4,000 NPS accounts Non-Banks: Minimum 3,000 NPS accounts

3 Best POP- POP-SP Activation Max. number of POP-SPs activated (Absolute 1.(during the period 01-04-2016 to number and not percentage activated. POPs under 31-03- 2017) the Centralized model would also be excluded from this). (Definition of POP-SP Activation: Acquisition of min. 1 or more PRAN during the period) Eligibility: Public Sector Banks: Activation of minimum 20 POP- SPs Private Sector Banks: Activation of minimum 15 POP-SPs Non-Banks: Activation of minimum 10 POP-SPs

4 Best POP – NPS Private Sector Maximum score obtained by POP based on the (Open to all POPs) 1.(during the figures of All Citizen Subscriber, Corporates sourced, period 01-04-2016 to 31-03- 2017) Corporate subscribers registered and Number of Corporates activated. The formula for deciding the said award is at Table below.

Table - Best POP Private Sector NPS

Parameter Weightage Acquisition Numbers Formula

All Citizen subscriber 0XA+ 30XB+ 30XC+ 10XE registration during 30 A 100 Where, A = All Citizen period subscriber registration during period Corporate Subscriber registration during 30 B period#

Corporate B= Corporate Subscriber Registration during 30 C registration during period C period = Corporate Registration during period D = Corporate Activation, and E* = _____ Corporate Activation D______Total Definition of Corporates Regd. till date) Corporate Activation: 10 D* Registration of min. 1 or more subscriber till date

*- Parameter D and E have been introduced to incentivize the POPs to not only source new corporates but also to activate the already registered ones. Parameter takes into account the performance on activation till date (data of previous years) and not confined to the present FY. #- POPs own employees as subscribers will not be taken into consideration for the count. Also, Corporates under Direct Upload model will be excluded in this.

Section 5: Macro-Economic Statistics

As on 31st As on 28th Absolute Percentage Indicators Units Jan,2017 Feb,2017 Change Change 5= Col 4- 6= {Col 5/Col 1 2 3 4 Col 3 3} *100 S&P BSE Sensex - 27,655.96 28,743.32 1,087.36 3.93 CNX Nifty - 8561.3 8879.6 318.3 3.72 Rs/$ - 67.81 66.74 -1.07 (-)1.58 Rs/ 10 Gold 770 2.67 gm 28,825 29,595 Brent Crude $/barrel 55.7 55.59 -0.11 (-)0.20 Whole Price Index ON BASE 2004- - 0.9 6.55 (Y-o-Y) 05=100 184.6 185.5

Consumer Price Index ON BASE - 0.3 3.65 (Y-o-Y) 2012=100 130.3 130.6

Index of Industrial Production ON BASE - 7.8 2.7 (Y-o-Y) 2004-05=100 183.5 191.3

10 year G-Sec Yield % p.a 6.41 6.87 0.46 7.18 USD in Foreign Exchange Reserve 1.24 0.34 bn 361.56 362.8 Rs. Net FPI/FII(Equity) (Rs. crores) 8725.58 741.59 Crores (-)1176.6 9902.18 Rs. Net FPI/FII (Debt) 3641.06 157.00 Crores (-)2319.19 5960.25 Rs. Net FII (Total) 12366.64 353.76 Crores (-)3495.79 15862.43 * Figures of January & February, 2017

Source: BSE, NSE, RBI, CSO, SEBI

 India SENSEX increased 1087.36 points or 3.93% to 28,743.32 on 28th February 2017 from 27,655.96 as end of January 2017.  Nifty 50 closed at 8879.6 as on 28th February, 2017. Nifty increased 3.72% during the month of February, 2017.  Gold Price increased from Rs 28,825 as end of January, 2017 to Rs. 29,595 as end of February, 2017.  Brent crude oil decreased -0.20 USD/BBL or -0.00 % to 55.59 on 28th February, 2017 from 55.7 in the previous month (January, 2017).

 India's consumer price index was 3.65 percent higher in February, 2017 compared with February 2016.

 The annual rate of inflation, based on monthly WPI, stood at 6.55% (provisional) for the month of February, 2017 (over February, 2016) as compared to 5.25% (provisional) for the previous month and -0.85% during the corresponding month of the previous year.

 The General Index for the month of January 2017 stands at 191.3, which is 2.7 percent higher as compared to the level in the month of January 2016. The cumulative growth for the period April- January 2016-17 over the corresponding period of the previous year stands at 0.6 percent.

 The Indices of Industrial Production for the Mining, Manufacturing and Electricity sectors for the month of January 2017 stand at 146.1, 199.2 and 195.6 respectively, with the corresponding growth rates of 5.3 percent, 2.3 percent and 3.9 percent as compared to January 2016. The cumulative growth in these three sectors during April-January 2016-17 over the corresponding period of 2015-16 has been 1.4 percent, (-) 0.2 percent and 5.0 percent respectively.  India Government Bond 10Y increased to 6.87 on 28th February, 2017 from 6.41 in the previous month.  There was net inflow of Rs. 15862.43 crores foreign portfolio investments in India in the month of February, 2017, against the outflow of Rs (–) 3495.79crores in the month of January, 2017.  Foreign Exchange Reserves in India increased 1.24 USD Billion or 0.34 % to 362.80 USD Billion on 28th February, 2017 from 361.56 USD Billion in January 2017.  US Dollar to Indian Rupee Exchange Rate is at a current level of 66.74, low from 67.81, the previous month. **********