The National Pension System (NPS), which provides

Solution

Regulatory Authority The Pension Fund Regulatory and Development Authority (PFRDA) is the statutory body established by the Government of India to promote, develop, and regulate the pension sector. It was initially established through a government resolution in 2003 and later gained statutory status through the PFRDA Act, 2013 , which came into effect on February 1, 2014.   About the National Pension System (NPS)

• Mandatory for Government: NPS was made mandatory for all new recruits of the Central Government (except for the Armed Forces) joining service on or after January 1, 2004 .
• Structure: It is a voluntary, defined-contribution pension system. It allows subscribers to contribute to a retirement account (PRAN - Permanent Retirement Account Number) during their working life.
• Universal Reach: While initially meant for government employees, it was opened to all citizens of India (including NRIs and the unorganized sector) in May 2009.
• Asset Management: The funds are managed by PFRDA-registered Pension Fund Managers (PFMs) , who invest the corpus in various asset classes like Equity, Government Securities, and Corporate Bonds.

• RBI: Regulates the banking sector and monetary policy in India.
• SEBI: Regulates the securities market (stock exchanges, mutual funds, etc.).
• IRDAI: Regulates the insurance sector in India. While NPS subscribers must buy an annuity from an insurance company upon retirement, the NPS scheme itself is governed by PFRDA.