Press Information Bureau

Government of India

Ministry of Finance

02-December-2011 18:7 IST

National Bank for Agriculture and Rural Development (NABARD) has reported that in the Self Help Group (SHG)-Bank Linkage Programmes for Rural Poor household, the saving portion of the groups can be utilized by the rural poor to meet requirements during old age.

Government of India (GoI) has identified the interim Pension Fund Regulatory and Development Authority (PFRDA) as the implementing agency for New Pension System (NPS). To encourage the people from the unorganized sector to voluntarily save for their retirement, Government of India had launched the Co-contributory Pension Scheme called “Swavalamban” during 2010-11, whereby the Government of India would contribute a sum of Rs.1,000 in each NPS account opened with a minimum contribution of Rs.1,000 and maximum contribution of Rs.12,000 per annum. The Scheme is managed by PFRDA. NABARD has decided to support PFRDA through a grant assistance of Rs.50 crore towards promotional and developmental activities for enrolment and contribution collection under Swavalamban Scheme.

This information was given by the Minister of State for Finance, Shri Namo Narain Meena in written reply to an Unstarred Question in Lok Sabha today.

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Pension scheme support: NABARD grants funds to promote Swavalamban enrolment and contributions by unorganised sector workers. The Government designated interim PFRDA as New Pension System implementer and launched the co contributory Swavalamban Scheme to encourage voluntary NPS enrolment by offering a government co contribution tied to personal deposits; NABARD will provide grant assistance to support promotional and developmental activities for Swavalamban enrolment and contribution collection, and SHG savings are identified as a resource for rural poor old age needs.