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Presentation On for Aggregators 1
Presentation On
for Aggregators
1
Aggregator
Aggregators are entities registered by PFRDA who act as the only link between the Subscriber and National Pension
System.
Aggregator
Subscribers
Subscribers Subscribers
Aggregator
Subscribers
Subscribers Subscribers
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Nodal offices/entities running certain schemes for identified beneficiary
groups under Central and State Governments (e.g. Labour Boards).
Micro-Finance Institutions (MFIs).
Non Banking Finance Companies (NBFCs).
Non Government Organizations (NGOs).
Entities running Common Service Centers under National E-Governance
Plan.
Any other category as identified by PFRDA from time to time, such as
Banks, Regional Rural Bank etc.
Potential Entities For Role Of Aggregator
3
The Entity must be in the business of Financial Services or Commodity
Development for at least 3 years and must be financially viable.
Must have a formal governance structure
Must meet the Net worth criteria :-
Rs 1 crore for those in business for 3-5 years
Rs 50 Lakhs for those in business for more than 5 years
Entity must have the capability to manage large customer database.
Entity must have the cash management & transfer capabilities as
prescribed by PFRDA.
PFRDA may, at its discretion, relax some, or all of these eligibility criteria in case of entities which are fully or partly controlled by either
Central or any State government or have been created under any specific arrangement of the Central or State government or any other
entity with proven track record, on a case to case basis, in the initial stages of development of the sector.
Eligibility Criteria
4
Each entity enlisted as an aggregator shall have to submit a security
deposit in the form of a demand draft or a bank guarantee from a
scheduled commercial bank
The quantum of security deposit shall be determined in terms of the net
worth of the entity
• Security deposit = 1% of net worth or Rs 20Lakh , whichever is less.
• In case of Regional Rural Bank registered as Aggregator under NPS, quantum of security shall be equals to 1 % of net-worth or 10 Lakhs whichever is less.
• Security deposit is subject to a minimum of Rs 5 Lakhs.
Security Deposit
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Revenue Structure for Aggregators
At the End of Financial Year
Payment Cycle
Subscriber Enrolled per Year
Below 1
Lakh 1 Lakh to 3 Lakhs
3 Lakhs to 5 Lakhs
Above 5 Lakhs
Fixed Defined as
per Regulation
Rs.100 Rs.100 Rs.100 Rs.100
Variable Volume Driven
Incentive Rs.20 Rs. 30 Rs.40 Rs.50
Note: Only for Swavalamban eligible accounts.
At the End of Financial Year
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Note: Only for Swavalamban eligible accounts.
Illustration on Revenue Structure
Incentive shown here are indicative amounts for illustration purpose only.
Subscriber Registration Renumeration
Year 1 Year 2 Year 3 Year 1 Year 2 Year 3
Fixed Variable Fixed Variable Fixed Variable
New Subscribers 80000 120000 310000 Rs 80,00,000 Rs 16,00,000 Rs 1,20,00,000 Rs 36,00,000 Rs 3,10,00,000 Rs 1,24,00,000
Renewal Cases 0 80000 200000 0 0 Rs 80,00,000 0 Rs 2,00,00,000 0
Total 80000 200000 510000 Rs 96,00,000 Rs 2,36,00,000 Rs 6,34,00,000
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1. A. P. Building & Other Construction Workers
2. Allahabad U.P. Gramin Bank 3. Department of Post
4. Directorate of Women and Child Development 5. Karnataka State Un-organised Workers Social Security
Board (KSUWSSB)
6. LIC Housing Finance Ltd 7. LIC of India
8. M.P. State Electronic Development Corporation Limited 9. Society for Elimination of Rural Poverty
10. Building and Other Construction Workers Welfare Board (Rajasthan)
11. Jharkhand Building & other construction workers welfare Board
12. Canara Bank 13. Oriental bank of Commerce
14. Punjab National Bank 15. Allahabad Bank
16. Bank of India 17. Bank of Baroda
18. Indian Overseas Bank
19. Vijaya Bank
20. Corporation Bank
21. Indian Bank
1. Adhikar Micro Finance Private Limited
2. Bandhan Financial Services Pvt. Ltd.
3. Bandhan Konnagar 4. ESAF Microfinance
5. Financial Inclusion Network And Operations Ltd 6. BWDA Finance Ltd.
7. M/S Cashpor Micro Credit 8. South Indian Bank Limited
9. Alankit Assignments Ltd
10. IFMR Holdings Private Limited
11. SPANCO Ltd. 12. Banaskantha Dist. Co-op. Milk Producers Union Limited
13. SREI Sahaj e-Village Limited (SSEL) 14. Samhita Community Development Services
15. Saptarishi Consultancy Services 16. SEWA Bank
17. Shree Kshethra Dharmasthala Rural Development Project 18. Abhipra Capital Ltd
19. C DOT
20. Margdarshak Financial Services
21. IL$FS Securities
22. Indur Intimideepam 23. India Infoline limited
Government
( Undertakings , Autonomous Bodies Banks etc)
(41)
Non - Government
(25)
AGGREGATORS (As on 09/11/2012) 66
Aggregators
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22. State Bank of Patiala 23. Union bank of India 24. Saptagiri Grameen bank 25. Karnataka Gramin Bank
26. North Malabar Gramin Bank
27. Krishna Gramin Bank
28. Nainital Almora Kshetriya Gramin Bank
29. Dena Bank
30. State Bank of Mysore
31. Sate bank of Bikaner & Jaipur
32. United Bank of India
33. State Bank Of Hyderabad
34. Baroda Gujarat Gramin Bank
35. Parvatiya Gramin Bank
36. Pallavan Gramin Bank
37. Puduvai Bharthiar Gram Bank
38.Saptagiri Gramin Bank
39.Jhabua Dhar Kshetriya Gramin Bank
40. Baroda Rajasthan Gramin Bank
41.Andhra Bank
Government
( Undertakings , Autonomous Bodies Banks etc)
(41)
Non - Government
(25)
AGGREGATORS (As on 09/11/2012) 66
Aggregators
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24. Asomi finance Pvt. Limited
25. Grameen FinancialServices
Relationship between Subscribers & Aggregator
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Aggregator with the Subscribers
Aggregator shall be the primary point of interaction between the subscriber and the NPS - Swavalamban architecture.
The Aggregator shall perform the following activities for the subscriber.
1. NPS - Swavalamban Awareness
2. Subscriber Registration
3. Subscriber Servicing
4. Grievance Handling
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1. Swavalamban Awareness
The Aggregator has an important role to play in creating awareness on the following points:
Need for pension/old age income security.
NPS is the ideal product to meet the need for old age income security.
Government support to NPS - Swavalamban for small and regular investors .
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2. Subscriber Registration and Contribution Processing
Helping subscriber to register into NPS -Swavalamban.
Receiving and Verifying duly filled forms from subscribers.
Checking of KYC documents and eligibility of subscribers.
Ensuring the first contribution of a minimum of Rs 100 and collecting subsequent contributions.
Processing of forms.
Collection of subscriber’s regular contribution and uploading it into the system.
Transferring funds into the system
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3. Subscriber Servicing The Aggregator is the nodal point for servicing the customer
Process subscriber requests for carrying out changes in the following cases:
O Name O Address O Phone/Mobile Number/Email ID O Subscriber Bank Details O Change in nomination details
The Aggregator must ensure that in all cases the request for change should be supported with prescribed documents
Request for re issue of PRAN card
Provide information on Statement Of Transactions
Process withdrawal requests (this is important and is detailed in the next slide)
Any other requests by subscriber
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Subscriber Servicing - Withdrawal Process
CRA system
Pension Fund
Manager
Trustee Bank
Transfer of Settlement amount
Aggregator
Maker Checker
Withdrawal Request
Request Processing • Execution of withdrawal Request •withdrawal instructions to Trustee Bank & PFM
Calculates NAV and transfers money to TB
Subscribers / Nominee
Transfers settlement amount into subscribers and ASP
Cash Flow
Information Flow
1 2
3
4 5
6
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Withdrawal Process
Exit on 60 yrs
Subscriber would be required to invest minimum 40% of accumulated savings (pension wealth) to purchase annuity.
Choose the annuity service provider.
Subscriber will provide the bank account and withdrawal details to aggregator and aggregator to upload the information for execution in CRA System.
At the time of exit, our effort is to give a monthly pension of Rs.1000/-. If 40% of corpus is not sufficient to give pension of Rs.1000/- higher percentage or entire pension wealth would be subject to annuitisation.
Exit before 60 yrs
Subscriber would be required to invest minimum 80 % of accumulated savings (pension wealth) to purchase annuity.
Choose the annuity service provider.
Subscriber can withdraw balance 20%.
At the time of exit, our effort is to give a monthly pension of Rs.1000/-. If 80% of corpus is not sufficient to give pension of Rs.1000/- higher percentage or entire pension wealth would be subject to annuitisation.
Withdrawal on Death of Subscriber
In case of death, the entire corpus will get transferred to the nominee/ legal heirs.
The nominee/ legal heir will approach the aggregator with necessary documents such as Death Certificate of the deceased, Identify proof of the nominee, etc.
Withdrawal will be done through the Aggregator.
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Process flow for Subscriber Servicing
Subscriber
Account Office
CRA
Request to Change details
Acknowledgement Number through
e-mail/web access
Request capture & Authorize
Collection Center
Verify and forward
https://cra-nsdl.com
1.
2.
3. 4.
5.
6.
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4. Grievance Handling
Receiving of grievances submitted by the subscriber against
any NPS Intermediary including aggregator .
Uploading all grievances in the Central Grievance
Management System (CGMS) of CRA on a daily basis.
The CGMS system of CRA would route the grievances to
respective NPS intermediaries for resolution.
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The NPS – Swavalamban Architecture & Entities
Aggregator
NPS Trust
PFMs
Pension Fund Regulatory and Development Authority
19
CRA Trustee
Bank
Annuity Service
Provider Custodian
INTERFACE
The various entities in the NPS-Swavalamban architecture as
represented above and their roles are detailed in the next few slides
Pension Fund Regulatory and Development Authority
NPS - Swavalamban Architecture - PFRDA
Subscriber
Aggregator Account Office
Aggregator Collection
Center
Aggregator Oversight Office
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PFRDA is the regulator established by Government of India to promote old age income security in the country.
PFRDA Establishes, develop and regulate pension funds, to protect the interests of subscribers to schemes of pension funds and for matters connected therewith or incidental thereto.
PFRDA has put in place the institutional framework and infrastructure required for administering the ‘National Pension System’ (NPS) for government employees & all citizens of India.
Pension Fund Regulatory and Development Authority
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Sector Number of Subscribers
AUM (Rs Crores)
Central Government
1,060,062 14,835
State Government 1,462,413 7,426
Private 163,317 745
NPS Lite 1,297,456 344
Total 3,983,248 23,350
Pension Coverage under NPS ( As on 07-11-2012)
22 *In Financial Y ear (2011-2012 ) 6.39 lakh subscribers were eligible for
Swavalamban incentive
Pension Fund Regulatory and Development Authority
Central Recordkeeping
Agency
NPS - Swavalamban Architecture - CRA
Subscriber
Aggregator Account Office
Aggregator Collection
Center
Aggregator Oversight Office
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Services provided by CRA (1/2) Registration of aggregator offices – Oversight Office (OO)/Account office (AO)/ Collection Center (CC). Issuance of unique PRAN to each subscriber. Maintain database of all PRANs and record the transactions related to each subscriber’s PRAN. Receive instructions from subscribers through their Aggregator; transmit such instructions to appointed Trustee Bank, Pension Fund Managers , Annuity Service Provider. Monitor each Aggregator’s contributions and instructions to transmit the information to the respective PFMs on a daily basis. CRA provides Aggregators, a web based interface to view/ download detailed history of transactions of PRAN.
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Providing subscribers with periodic Statement of Transactions (SOT) detailing the total contribution, time-wise credits into the account and other relevant information. Grievance Redressal Act on/transmit instructions of Aggregators
Investment option selection Switching over options Confirmation report
Retirement Account Information to be provided to subscribers Pension wealth accumulated in subscribers PRA Amount that can be withdrawn by subscriber in lump sum
Services provided by CRA (2/2)
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Aggregator’s role in relation to CRA
27
Subscribers will be mapped to the Aggregators
Subscriber
Oversight Office
Accounts Office
Collection Center
Aggregator’s Registration Hierarchy
1
2
3
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Roles & Responsibilities of Aggregator
Identification of designated offices & registration as Aggregators.
Registration of Oversight Office (OO)
Account Offices (AO)
Collection Centers (CCs)
At the time of registration, OO shall specify/choose the following
Centralized / decentralized models of contribution upload
Choice of Fund Manager
Aggregator's
Oversight Office
Aggregator's
Account Office
Aggregator's
Account Office
Aggregator's
Account Office
Collection
Center
Collection
Center
Collection
Center
Collection
Center
Collection
Center
Collection
Center
Collection
Center
Collection
Center
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Registration of Aggregators and their Offices
Form N1
Form N2
Form N3
Registration Forms are available on PFRDA website
CRA
OO
AO
CC
Forwarding Form with covering letter
Details to be submitted to CRA
Name of the Office, Address, Email id, Authorised Signature & Stamp
1
3 2
4 5
Subscriber
Forwarding Form with covering letter
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Choice of PFM by Aggregator
PFM – Central Govt. Private Sector
ICICI Prudential pension Funds Management limited company
Kotak Mahindra Pension Funds Limited
Reliance Capital Pension Funds Limited
SBI Pension Funds Limited
UTI Retirement Solutions Limited
LIC Pension Fund Limited (34.0%)
SBI Pension Funds Limited
(34.0%)
UTI Retirement Solutions Limited
(32.0%)
Only one PFM should be selected by the aggregator on behalf of subscriber and should be confirmed (checked) in the subscriber registration form. # As per new guidelines for registration of PFMs, there is no ceiling on number of PFMs.
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Registration of subscribers to be carried out with the submission of physical applications.
Verified physical forms to be submitted by aggregator to CRA-FCs.
CRA will print and dispatch the PRAN Kit, for the newly registered
subscribers to AO.
CC AO /
OO CRA - FC
Checking and
Authorization of
Registration Forms
Consolidation and
Submission of forms to
CRA-FC
Digitising Subscriber
information and
upload to CRA main
CRA
CC wise PRAN Kits
generation & Dispatch
to Aggregator AO / OO
Subscriber Registration Process
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Subscriber
AO
Submission of Form Verification of details, provide KYC
documents, Consolidation and Submission
Scanning & digitization of Forms
Verification and Upload
Gen
erate PR
N
and
/or R
ejection
L
etter
CRA
CC NL-CC packets
Delivery of PRAN kit
Su
bm
issi
on
of
form
s
CRA-FC
Process flow of Aggregator
1. 2.
9.
8. 3.
4. 7.
5.
6. 33
Collection of subscriber’s contribution by CC.
CRA will provide the software utilities to aggregators for contribution upload.
Subscriber’s contribution upload by AO as decided by the aggregator/facilitator.
Submission of funds to the Trustee Bank after receiving the Transaction ID.
Contribution Upload Process
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Pension Fund Regulatory and Development Authority
Trustee Bank BOI
NPS -Swavalamban Architecture – Trustee Bank
Subscriber
Aggregator Account Office
Aggregator Collection
Center
Aggregator Oversight Office
CRA
Reports/MIS
35
Aggregator’s role in relation to Trustee Bank
37
Consolidation of Records
Submission of CSF & Transfer of funds
Fund Receipt
Confirmation
Aggregator
Trustee Bank BOI CRA
Process flow
1.
2.
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Role & Responsibilities of Aggregator
Fund Transfer Process
The NPS-Swavalamban AO can transfer the funds to the Trustee Bank through the following modes:
Cheque transfer – Cheque to be submitted to the branch of the Trustee Bank along with the Contribution Submission Form(CSF).
Electronic transfer (RTGS/NEFT)– Instructions to be given to the bank’s nodal office to transfer the funds to the Trustee Bank. In the RTGS/NEFT application, the nodal office has to mention the following details:
City, Bank Name, Branch Details , Aggregator name, Account type, Account Name & Number. In remarks column – Aggregator Registration Number allotted by CRA and Transaction id are to be entered mandatorily.
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Pension Fund Regulatory and Development Authority
NPS Trust
NPS -Swavalamban Architecture –NPS Trust
Subscriber
Aggregator Account Office
Aggregator Collection
Center
Aggregator Oversight Office
Trustee Bank BOI
CRA
Reports/MIS
40
Pension Fund Regulatory and Development Authority
Custodian (SHCIL)
NPS Trust
TB
NPS -Swavalamban Architecture - Custodian
Subscriber
Aggregator Account Office
Aggregator Collection
Center
Aggregator Oversight Office
CRA
Reports/MIS
42
The Custodian is the agency responsible for holding assets of the NPS Trust.
Pension Fund Regulatory and Development Authority
Custodian (SHCIL)
NPS Trust
Trustee Bank BOI
PFM
NPS -Swavalamban Architecture - PFM
Subscriber
Aggregator Account Office
Aggregator Collection
Center
Aggregator Oversight Office
CRA
Reports/MIS
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PFMs manage the retirement savings of subscribers under the NPS/Swavalamban. The PFMs are required to invest strictly in accordance with
guidelines issued by the Government/PFRDA
Pension Fund Regulatory and Development Authority
Custodian (SHCIL)
NPS Trust
Trustee Bank BOI
PFM
NPS -Swavalamban Architecture - ASP
Subscriber
Aggregator Account Office
Aggregator Collection
Center
Aggregator Oversight Office
CRA
Reports/MIS
46
Annuity Service Providers
Pension Fund Regulatory and Development Authority
Custodian (SHCIL)
NPS Trust
Trustee Bank BOI
PFM
NPS -Swavalamban Architecture – Information Flow
Subscriber
Aggregator Account Office
Aggregator Collection
Center
Aggregator Oversight Office
Information Flow
1
2
4
5 6
7
8
CRA
Reports/MIS
3
Annuity Service Providers
9
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Pension Fund Regulatory and Development Authority
Trustee Bank BOI
Fund Flow
Annuity Service Providers
PFM
Funds Flow Subscriber
Aggregator Account Office
Aggregator Collection
Center
Aggregator Oversight Office
NPS -Swavalamban Architecture – Fund Flow
1
2
3 4
5
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Pension Fund Regulatory and Development Authority
Custodian (SHCIL)
NPS Trust
Trustee Bank BOI
PFM
NPS -Swavalamban Architecture
Subscriber
Aggregator Account Office
Aggregator Collection
Center
Aggregator Oversight Office
CRA
1
2
3
4
6
7
8
Annuity Service Providers
Fund Flow
2
1
3
4
5
5
Funds Flow
Information Flow
Reports/MIS
9
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Important Websites Pension Fund Regulatory Development Authority
www.pfrda.org.in
Central Recordkeeping Agency
Transactional Website: https://cra-nsdl.com
Business Website: www.npscra.nsdl.co.in
Important Documents
Registration Forms: Visit www.npscra.nsdl.co.in (Subscribers Corner Forms NPS/Swavalamban Forms) Notifications Visit http://pfrda.org.in Toll Free Numbers •CRA- 1800222080 •NPS Helpdesk- 1800110708 51
