Kerala-based Muthoot Finance Ltd, a leading gold loan company, today said it has tied up with Pension Fund Regulatory and Development Authority (PFRDA), an autonomous body under the Ministry of Finance, to act as a
service provider for the National pension scheme.
Muthoot Finance is the only Non-Banking Financial company in the state to be approved by the PFRDA to act as a service provider for the pension plan, a company release said here.
The national pension scheme extends on voluntary basis to all citizens of the country and would also include workers of unorganised sectors. The scheme's core aim is to promote the old age income security of the people.
Commenting on the association, George Alexander Muthoot, Managing Director, Muthoot Finance, said the company was honoured to be associated with the PFRDA.
With its pan India network of close to around 4,000 branches in both urban as well rural areas, Muthoot will ensure that the benefit of this pension scheme reaches maximum number of Indians, he said.
The scheme is open to the Indian citizens between the ages of 18-60. The minimum amount of subscription is Rs 500 per month with an option for the investors to choose any growth scheme (i.e. active and auto choice).
It assures regular monthly pension on attaining the age of 60 and tax benefits up to 10 per cent of individual's salary (basic + DA) under section 80CCD(2) over and above the present limit of Rs 1,00,000. The scheme also has lumpsum repayment of funds upto 60 per cent of the balance outstanding in the account on attaining the age of 60.