The Pension Fund Regulatory and Development Authority (PFRDA) is a regulatory body established in India to oversee the administration and management of pension funds in the country. The PFRDA was established under the Pension Fund Regulatory and Development Authority Act of 2013 and is responsible for protecting the interests of the subscribers of pension schemes, as well as promoting the development of pension funds in India.
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PFRDA Act 2013
The Pension Fund Regulatory and Development Authority Act of 2013 lays out the framework for the regulation of pension funds in India. The act provides for the establishment of the PFRDA, as well as the guidelines for its functioning. The act also outlines the powers and responsibilities of the PFRDA, including the regulation of pension funds, the protection of subscribers’ interests, and the promotion of the development of pension funds in India.
Functions of PFRDA
Here are some of the key functions of PFRDA:
- Regulation of pension funds: PFRDA regulates and oversees the functioning of pension funds to ensure that they are managed in accordance with established laws, regulations, and best practices.
- Development of the pension sector: PFRDA is responsible for developing the pension sector in India by promoting pension products, encouraging savings, and enhancing the participation of citizens in pension schemes.
- Protection of subscribers’ interests: PFRDA protects the interests of subscribers by ensuring that pension funds are managed in a responsible and secure manner. It also ensures that the benefits promised to subscribers are delivered on time.
- Promotion of transparency: PFRDA promotes transparency in the pension sector by requiring pension funds to disclose relevant information about their investment portfolios, fees, and charges.
- Encouragement of competition: PFRDA encourages competition in the pension sector by promoting the entry of new pension providers, thus increasing choice for subscribers.
Intermediaries Under PFRDA
The Pension Fund Regulatory and Development Authority (PFRDA) is the regulatory body for pension funds in India. PFRDA has introduced two intermediaries under its purview to ensure secure and convenient investment management for pension fund subscribers.
- Central Record-Keeping Agency (CRA): The Central Record-Keeping Agency is responsible for maintaining accurate and up-to-date records of all pension fund subscribers. It also provides consolidated statements of all transactions, facilitating easy monitoring of investments. The CRA ensures the protection of subscribers’ personal information and the secure transfer of funds.
- Online Services of PFRDA: PFRDA’s online services provide a convenient platform for subscribers to manage their pension fund investments. The portal offers various services, including registration, contribution, and fund switching. Subscribers can also view their account statements and transaction history online, making it easy to track their investments. The online portal is secure and user-friendly, providing subscribers with complete control over their pension funds.
Conclusion
The Pension Fund Regulatory and Development Authority (PFRDA) plays a critical role in the administration and management of pension funds in India. By regulating pension funds, protecting the interests of subscribers, and promoting the development of pension funds, the PFRDA is helping to ensure that the retirement savings of millions of Indians are secure. With the increasing importance of pension funds in India, the PFRDA will continue to play a vital role in ensuring the long-term financial security of the country’s citizens.
