Former SBI MD Hemant Contractor Appointed Chairman of PFRDA
Former SBI MD Hemant Contractor Appointed Chairman of PFRDA
Former Managing Director of the State Bank of India, Hemant Contractor has been selected as the new Chairman of the PFRDA (Pension Fund Regulatory and Development Authority). The government cleared his name for the post.
Financial Services Secretary G. S. Sandhu was quoted by the PTI as saying, “We have approved the name of Hemant Contractor as the new Chairman of PFRDA.”
The post for Chairman of PFRDA has been lying vacant for nearly a year following the resignation of its former Chairman Yogesh Aggarwal. Aggarwal had quit following differences with the Ministry of Finance regarding the appointing of a PFRDA member. Though the interview for the regulatory head had been conducted earlier in the year, no decision regarding this had been taken by the government.
Meanwhile, the Acting Chairman of the pension regulatory and development watchdog had been R. V. Verma for this period. He is the whole time member (finance) who has been working in this capacity for some time now. Another whole time member of the body is B. S. Bhandhari.
The most important decisions regarding PFRDA currently revolve around the New Pension System or NPS, a system which has met with its share of critics. The challenge before the new chairman, to quote one media daily, will be to popularise this system. Media reports have indicated that one of the most important policy decisions to boost the NPS will be allowing corporates to subscribe to this system.
There are currently 10 bodies involves in the pension system. Also on the agenda is the facilitation of tax benefits to NPS subscribers. Sandhu has also been quoted as saying that the Government is considering separating the posts of Chairman from MD in most public sector banks. Apart from SBI, currently all state owned banks have a single person who has been allocated this post.
Many PSU banks currently have pending appointments and the Secretary indicated the Government is already working on this and the exercise is on to fill the vacant positions. PFDRA or the Pension Fund Regulatory & Development Authority Act was passed on September 19th last year. The Act was notified on 1st February this year. PFRDA has a chairman and not more than 5 members. It is the regulatory body for the National Pension System.
The NPS is subscribed by GoI employees as well as state government and private sector employees from organised and unorganised sectors. This regulatory body is ensuring the growth of the Indian pension market. The NPS was extended to all citizens of the nation from May, 2009. It now includes self employed professionals and others within the unorganised sector on a basis that is voluntary. PFRDA is an important regulatory body with an important role in advancing the development of the pension market in India.
