Microfinance

KGFS pilots pension product

By Arun Seethamraju, IFMR Rural Finance

With an objective to provide a long term savings option to its customers, KGFS has added NPS-Lite (New Pension Scheme) to its product portfolio. NPS-Lite is an initiative of Pension Fund Regulatory and Development authority (PFRDA) for the weaker and economically disadvantaged in the society to enable them to have a secured post-retirement living, so as to provide them with a regular stream of pension as annuities for old age. For KGFS customers, saving in NPS-Lite account now is one of the options to insure against longevity risk (outliving one’s productive age).

As a pilot, this product has been introduced across three branches (Kaikatti, Pulvankadu and Ilangarkudi) in Pudhuaaru KGFS and at Gokarnapur branch in Dhanei KGFS. On the first day 52 customers (24 females and 28 males) among different age groups have registered themselves for this scheme.pension kgfs

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