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The NPS industry has added close to 7 lakh new individual subscribers in FY 2022-23, shows PFRDA data. These include individuals who registered under the ‘All Citizen’ model i.e. subscribers who opened NPS accounts on their own or through Point of Sales Representatives.
The number of such subscribers increased close to 30% from 22.92 lakh as on March 2022 to 29.57 lakh as on March 2023. Commenting on these numbers, Kurian Jose, CEO, Tata Pension Management said, “The growth numbers are encouraging. There is a slow pull that is being generated in the NPS space and we expect these numbers to be higher in the coming years.”
Further analysis shows that ‘All Citizen’ subscribers formed only 5% of the total subscribers (NPS and APY) and APY subscribers enjoyed the largest share at 73%.
“APY aims at bringing the economically weaker section of the society under the pension umbrella, and as banks motivate more and more of this population to invest, the number of subscribers is understandably high here”, explained Kurian.
In terms of AUM, subscribers to the ‘All Citizen’ model held assets of Rs. 42,623 crore as on March 2023, 32% higher than the previous year. However, these assets formed just 5% of the total NPS and APY AUM.
Notably, Central Government, State Government and Corporate Subscribers collectively had a humungous share of 92% in the total AUM. NPS subscription is mandatory for government organisations and PSUs, and hence they have a significant contribution to the total assets.
At the industry level, the total AUM was Rs. 8.98 lakh crore as on March 2023.
