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SIB Targets NPS Hard-Sell

The bank increased the number of outlets to 105

Indicating its strong belief in the New Pension Scheme (NPS), the Kerala-based South Indian Bank has put in place as many as 105 branches, which have been designated as Points of Presence (PoPs) for providing all related services to investors.

By doing that the bank has become the largest service provider for NPS in India, says the Economic Times.

There are 21 banks and financial institutions that have been chosen for the job by the Pension Fund Regulatory & Development Authority (PFRDA).

The NPS is open for subscription to all employees, whether from organized or unorganized sector.

However, the popularity of the scheme is in question as it has failed to lure enough investors due to various reasons, the foremost being that the corpus will be taxed on withdrawal – government has taken some steps that indicate this may well change.

Another reason may be that there are no commissions on offer for agents and distributors to start hard-selling the scheme. Conversely, banks can earn as much as 5 per cent while selling insurance plans. Banks make as much as Rs 20 for every time investors invest in the NPS.

According to DNA, the 731 nominated PoPs have been able to sell only 1,629 forms.