MUMBAI (Reuters) - The finance ministry has approved in principle making the Pension Fund Regulatory and Development Authority (PFRDA) the sole regulator for all Indian pension products, said Supratim Bandyopadhyay, a member of the authority.
“The in-principle approval has come from finance ministry for the PFRDA Act amendment which will make PFRDA the single regulator for pension products,” said Bandyopadhyay.
The proposal has been forwarded to other ministries and will need an approval from the cabinet. Final approval could come in a few months.
The authority now regulates only certain pension products. It has recommended that products other than those it sells not carry the pension tag to avoid confusing customers. Funds it oversees have returned 9.5% to 11.3% a year since it was set up in 2003.
The various pension funds in India total over 25 trillion rupees ($351.62 billion). The authority now handles only 4 trillion rupees, Bandyopadhyay said.
($1 = 71.0992 Indian rupees)
Reporting by Nupur Anand, editing by Larry King