MONTHLY PENSION BULLETIN

Transcription

1 AUGUST 2014 Vol. III Issue VIII MONTHLY PENSION BULLETIN Pension Fund Regulatory and Development Authority 1 st Floor, ICADR Building, Plot No.6 Vasant Kunj Institutional Area, Phase-II, New Delhi Ph.: , Fax: , Website:

2 CONTENTS Page No. 1. Statistics on National Pension System 2 2. Developments in PFRDA Macroeconomic Statistics

3 Sl. No. Employer/Sector Statistics on National Pension System (m-o-m) Number of subscribers As on 7 th As on 7 th % July 2014 August Change 2014 (m-o-m) 13,97,594 13,95, As on 7 th July 2014 Corpus under NPS (In Rs. crore) As on 7 th August 2014 % Change (m-o-m) 1. Central 28, ,266 Government 2. State Government 21,10,624 21,68, ,099 25, Private Sector 3,66,764 3,74, ,766 3, NPS-Lite 30,99,790 31,67, ,114 1, Total 69,74,772 71,05, ,245 58, Tier II Accounts 12, ,977 Activated Note: Data pertaining to Chandigarh, Puducherry and WB is "included under State Government" and is excluded from Central Government. 2

4 Developments in PFRDA PFRDA First Pension Conclave held on 26 th August 2014, IHC, New Delhi Panel Discussion Sh. R. V. Verma, Chairman, PFRDA welcoming the panelists and delegates at the First Pension Conclave L to R: Sh. R V Verma, Chairman, PFRDA, Mr. Mukesh Agarwal, President, CRISIL Research, Mr. Otto Thoresen, Director General, Association of British Insurers., Dr. Nachiket Mor, Board Chair, CARE India & Director, Central Board, Reserve Bank of India, Mr. William Joseph Price, Senior Financial Sector Specialist, Finance and Markets, The World Bank Group, Dr. Ajay Shah, Professor, National Institute of Public Finance and Policy, Mr. Alexander Ilkgelen, Global Head, Insurance Group, Global Financial Markets, International Finance Corporation. 3

5 Mr William Joseph Price, Senior Financial Sector Specialist, World Bank, Keynote Speaker addressing the delegates at the First Pension Conclave Dr. Ajay Shah, Professor, National Institute of Public Finance and Policy addressing the delegates at the First Pension Conclave Dr. Nachiket Mor, Board Chair, CARE India & Director, Central Board, Reserve Bank of India addressing the delegates at the First Pension Conclave 4

6 Mr. Otto Thoresen, Director General, Association of British Insurers addressing the delegates at the First Pension Conclave Mr. Alexander Ilkgelen, Global Head, Insurance Group, Global Financial Markets, International Finance Corporation addressing the delegates at the First Pension Conclave 5

7 Mr. Mukesh Agarwal, President, CRISIL Research addressing the delegates at the First Pension Conclave Dr. B. S. Bhandari, WTM, PFRDA proposing the vote of thanks at the First Pension Conclave 6

8 Delegates at the First Pension Conclave 7

9 Delegates at the First Pension Conclave Launch of PFRDA Website and Release of Annual Report by Shri Arun Jaitley, Hon ble Union Finance Minister, Govt. of India Arrival of Shri Arun Jaitley, Hon ble Union Finance Minister, Govt. of India at the First Pension Conclave and Welcome by Sh. R V Verma, Chairman, PFRDA 8

10 Shri Arun Jaitley, Hon ble Union Finance Minister, Govt. of India lighting the lamp at the First Pension Conclave Sh. R. V. Verma, Chairman, PFRDA welcoming Shri Arun Jaitley, Hon ble Union Finance Minister, Govt. of India and Other Eminent Dignitaries and Delegates at the First Pension Conclave 9

11 Mr. Onno Ruhl, Country Head, World Bank India addressing the delegates at the First Pension Conclave Dr. Anup Wadhawan, Joint Secretary (PI & BA), Ministry of Finance, Department of Financial Services addressing the delegates at the First Pension Conclave L to R: Dr. Anup Wadhawan, Joint Secretary (PI & BA), Department of Financial Services, Ministry of Finance, Dr. B. S. Bhandari, WTM, PFRDA, Shri Arun Jaitley, Hon ble Union Finance Minister, Govt. of India, Sh. R V Verma, Chairman, PFRDA, Mr. Onno Ruhl, Country Head, World Bank India 10

12 Shri Arun Jaitley, Hon ble Union Finance Minister, Govt. of India releasing the Annual Report of PFRDA at the First Pension Conclave Eminent Dignitaries holding the Annual Report of PFRDA after release by the Hon ble Union Finance Minister, Govt. of India 11

13 Shri Arun Jaitley, Hon ble Union Finance Minister, Govt. of India launching the Website of PFRDA at the First Pension Conclave Shri Arun Jaitley, Hon ble Union Finance Minister, Govt. of India addressing the delegates at the First Pension Conclave 12

14 PFRDA Aggregator s Conclave held on 26 th August 2014, IHC, New Delhi Sh. R. V. Verma, Chairman, PFRDA welcoming the panelists and delegates at the PFRDA Aggregator s Conclave L to R: Sh. R V Verma, Chairman, PFRDA, Sh. Rakesh Sharma, GM, PFRDA, Sh. A. G. Das, CGM, PFRDA, Dr. B. S. Bhandari, WTM, PFRDA, Ms. Madhavi Das, ED, PFRDA, Sh. Chandrashekhar Tilak, EVP, NSDL Sh A. G. Das, CGM, PFRDA addressing the delegates at the PFRDA Aggregator s Conclave 13

15 Delegates at the PFRDA Aggregators Conclave Presentation by Aggregators at the PFRDA Aggregators Conclave 14

16 PFRDA Officials at the First Pension Conclave 15

17 FM LAUNCHES NEW WEBSITE OF PFRDA AND RELEASES ITS FIRST ANNUAL REPORT; SAYS THE PENSION REFORMS WILL HELP IN RELEASING RESOURCES FOR BETTER DEPLOYMENT AND UTILISATION IN OTHER SOCIAL SECTORS New Delhi, August 26, 2014 The Union Finance Minister Shri Arun Jaitley said that to build a consensus on issues such as pension across the political spectrum is not easy. He said that the Pension Fund Regulatory and Development Authority (PFRDA) legislation has however gone through a process of guided development and adequate sensitisation. He highlighted the important aspects and implications of pension reforms, a key area of financial sector and economic reforms in the country. He said that an amendment to the Insurance Act to enhance the limit of FDI to 49% will also mean similar provision for the pension sector. The increase in the FDI limit to 49%, will permit inflow of foreign capital, investment expertise and new technology. The Finance Minister Shri Jaitley was speaking after launching a new user friendly and informative website of PFRDA at First Pension Conclave held here today. The Finance Minister also on this occasion released the First Annual Report of PFRDA for post notification of the PFRDA Act. Releasing the Report, the Finance Minister hoped that the Regulatory Authority would provide a conducive and enabling environment for expansion in pension industry with larger number of players. The Union Finance Minister Shri Arun Jaitley said that considering that pension pay-outs, particularly unfunded and uncertain are to be borne by the Public exchequer, the pension reforms will mitigate this burden releasing resources for better deployment and utilisation in other social sectors. He highlighted the need to build up corpus of funded resources to eventually act as the source for pension pay outs in future, and also as a source for financing critical sectors as infrastructure and also capital market. Highlighting the importance of NPS Swavalamban scheme for the unorganised sector people, the Union Finance Minister Shri Arun Jaitley said that this segment requires special support and he urged PFRDA to promote this scheme vigorously across the country. Expressing confidence about the role of PFRDA in promoting Swavalamban Scheme, he expressed that the scheme signifies an element of selfpride through participation of the less fortunate and excluded segments. The Finance Minister expressed confidence that the regulatory authority will formulate regulations for sound and sustainable growth of the pension system with due regard to the interest of the subscribers including setting-up an efficient and responsive grievance redressal mechanism, He exhorted the industry to come up with more and more new products which could compete with each other with benefit accruing to the pension subscribers. 16

18 Speech by Shri Arun Jaitely, Hon ble Union Finance Minister at the PFRDA First Pension Conclave I am extremely delighted to associate with the brief function today for the launch of the website of the Pension Fund Regulatory Authority and the release of its Annual Report. Pensions always was key area of reform in India. Decision making in democracies is a very intrinsic issue and in a democracy where the benefits of change and reform don t reach some section of people and are slow in reaching many others, some are completely kept out, decision making becomes far more difficult. Decision comparison to various developed nations where people have already enjoyed the fruits of development. Therefore it s the art of carrying a large section of public opinion, parliament opinion with you and the reforms do come but they come a little too slowly. The pension sector reforms are really a part of this process. It s in 2003 that finally after consultation a realisation which most state government, central government felt had started dawning upon the policy makers. You have special equities in the society where people need an economic resource, particularly at a time when they are not working productively. Age expectancy is rising and therefore in the post active working age you need an element of social security. So longevity is a reality, security is a reality on the other side the burden on public exchequer is also a reality. You can t manage your economic resource in a manner in which you have to borrow all the time in order to fund your own existence. Government can not indefinitely do that. And therefore by an executive fiat in 2003, I recollect after a great debate, I was part of the government at that time also, the Government decided that we must set up the pension schemes and the Regulatory Authority. It was notified in early 2004, and the legislation itself took a considerable amount of time. It spent a very long time in the Standing committee. The Standing committee wanted to ensure that the return to the investor would not be less than what they earned from their provident funds. There was always the fear of the unknown as to where the funds would be invested and it was this fear of unknown which was being highlighted that the legislation was being delayed. I am glad in 2013, the legislation was eventually passed and as now been notified. There is yet another link which remains. Hopefully by the end of the year the amendments to the insurance act get approved by parliament and are notified, then there is an intrinsic link which the act acts with the pension law itself. The Foreign Direct Investment limits in the insurance act automatically and ipso facto applies to the pension law and therefore additional investment coming in, more expertise coming in more capital coming in, hopefully more funds coming in and different kind of product competing against each other would then become a greater reality. 17

19 In the new economic setup to what extent do the government scheme loading up with the expenditure of their own service. Do they keep contributing annually along with the employee and as the global experiment has taken place in most places of the world. The pension funds keep getting that money. So you have the periodic investment and you have the state responsibility element, you have an element of social security and you also have the channelizing of all these investments into the developmental activity of the society In the end of day pension funds are one of the biggest investor globally and there is no reason why we should not strive to reach that optimal limit. Of course with Funds operating and investing, you need an effective regulator and I am glad today that the pension regulator has also made its own affairs public. Its annual report is being released with great fan-fare, its website will now be active hopefully it will further keep expanding and its Greivance Redressal System could also become digital. And with these areas I am quite certain that with the slow but sure direction of the pension reforms taking place in India coupled with the social security Swavalamban that the government had launched previously as world itself indicate its, it signifies the sense of dignity, it signifies an element of sufficiency on your own,there is an element of self-pride in it with all these coupled up which make up the Swavalamban, which is for the less fortunate so that they also have a element of social security, I hope our success would lie in the years to come when we see more and more products of all kinds competing with each other so that eventually the pensioner is always the winner out of this scheme. 18

20 PFRDA First Pension Conclave The First Pension Conclave of PFRDA was organized on 26 th August 2014 at India Habitat Centre, New Delhi. The Conclave included a panel discussion session followed by launch of PFRDA s Website and release of Annual Report by Shri Arun Jaitley, Hon ble Union Finance Minister, Govt. of India. Sh. R V Verma, Chairman, PFRDA welcomed the panelists and delegates at the First Pension Conclave and invited the panelists to address the delegates. The panel discussion was addressed by Mr. William Joseph Price, Senior Financial Sector Specialist, Finance and Markets, The World Bank Group. Dr. Nachiket Mor, Board Chair, CARE India & Director, Central Board, Reserve Bank of India. Mr. Alexander Ilkgelen, Global Head, Insurance Group, Global Financial Markets, International Finance Corporation, Mr. Otto Thoresen, Director General, Association of British Insurers, Mr. Mukesh Agarwal, President, CRISIL Research and Dr. Ajay Shah, Professor, National Institute of Public Finance and Policy. Mr. William Joseph Price, the keynote speaker at the panel discussion presented views on demographic challenges, contributory pension, elements of a pension system and understanding pension outcomes in other developing countries. He informed that 10% of global population is already over 65, that s going to be 20% by 2050 and a little under 30% by India is relatively young but ageing rapidly. Contributory pension /contributions is too low in India. It is in the group of 0-30% contribution. Number of people contributing and receiving pension is going to be key issue. Good pension policy looks for broad and diversified sources of retirement income. NPS model embodies some strong advantages like avoiding duplication of resources, costs etc. Dr. Nachiket Mor presented views on aggregator model and pension for the unorganised sector. Saving in the country from households are falling and people are not responding as much to other financial sector opportunities and in that somewhat gloomy context to have a program like NPS to do well is quite remarkable.one of the innovations that PFRDA brought out was whole notion of Aggregator which really allowed a number of formal players to enter this market. It conceived of the aggregator with capital, with the ability to be financially responsible. The current feature of illiquidity in NPS product is in fact is one of the most important benefits of the scheme. He suggested PFRDA to find the way out to discourage the multiple identity of a subscriber and should find a way out to use the already available identity to ease the duplicity of the same to the subscriber. Mr. Otto Thoresen presented views about the journey of the U.K. pension system from defined benefit to defined contribution and highlighted the challenges linked with the transition from defined benefit to defined contribution pension system. He informed that there is an organization known as National Employment Savings Trust (NEST) which has been created and supported by government and which has a duty to be there if no other provider is able to provide pension solutions. But UK has a very well development private sector DC model which is being rolled out at the same time.he informed that on data and data management, UK does not have a central depository for pension data. People s savings are spread across many technologies, many provider system in many places and there are discussions happening as to how they can be brought together in one place and make it available to the people, so that they can engage with the wealth they are building-up for their retirement years. 19

21 Mr. Alexander Ilkgelen presented views about the pension system in Latin America and costs of distribution and asset management and highlighted the challenges linked with low pension penetration in India and leveraging alternate channels. Dr. Ajay Shah presented views on the principles around NPS, the USPs of NPS and its achievements. He informed that NPS a framework built on thrift and self-help where people will build their own wealth and they will stand on their own feet. It is an individual account defined contribution system. There are no transfers between individual accounts. It is not a social system. The idea is to change investment policy in order to obtain better returns. The only way to serve the poor people is to use computer technology. The USPs of NPS are simplicity, scale, portability and procurement. He said that four things have been achieved. There is enormous achievement of politics. In Dec. 2002, the NDA took a decision to do the pension reform and in late 2004, the UPA endorse the decision and carried the work forward. Institutional framework was built before statutory PFRDA came into being. There are 7.1 million accounts and 0.60 trillion rupees assets under management. Today scale is not bottleneck. There is no problem with cost effectiveness with CRA. We are in for dramatic growth of the NPS in the next 10 years. Everywhere in the world, the pension systems have a way of just growing. They become the largest pools of investment in any country. UIDAI is phenomenal enabling technology. It works great for NPS. Auto filling of NPS forms by use of UID. Transformative technology can be harnessed for the purpose of NPS. Payment will be a mobile phone business. Payment will become an IT business. We have to exploit it for NPS. The civil servant can be the beach head and can be used to communicate for NPS in the society. He highlighted the problems of Indian workforce % of Indian work force needs to be increased. 2. We should make NPS to work for civil servants and for NPS subscribers to make them beach head.there should be only one scheme of NPS. We should make the NPS work better by use of technology. Transparency of data should be more. Asset allocation should be revisited. We should stay on the original course of NPS. He further suggested that we need to do much more to go to unorganised sector. The pension provisions like gratuity, superannuation funds should be merged with NPS. Role of co- contribution can play in building well-functioning defined contribution system for poor people. We do need to do more research in this field. EPF should be merged with NPS. Dr. Mukesh Agarwal presented views on about the need for long term funds for infrastructure and how the pension sector can play a pivotal role. The address by the speakers was followed by interactions with the delegates present at the conclave. Dr. B S Bhandari, Whole Time Member, PFRDA while proposing the vote of thanks at the Conclave solicited the support and cooperation of corporate, media and civil society in creating awareness about NPS and financial literacy among the subscribers. The panel discussion session was followed by the arrival of Shri Arun Jaitley, Hon ble Union Finance Minister, Government of India. Sh. R V Verma, Chairman, PFRDA delivered the welcome address and welcomed the Hon ble Union Finance Minister, Government of India, dignitaries and delegates to the launch of PFRDA s website and release of annual report. Mr. Onno Ruhl, Country Head, World Bank India in his address at the Conclave said that pension system is not just a financing opportunity for infrastructure but also a safety net for many people when they get older. Therefore, it is a very important job for PFRDA going forward about how India can build a pension system that can meet the dual challenge of deepening financial and capital markets 20

22 and providing for people who get older. World Bank has worked in many countries on pension systems most notably in Eastern Europe but there is completely different demographic situation in India which starts off with a great population. He appreciated the PFRDA s Swavalamban scheme under GoI for covering 3.2 million subscribers and highlighted the future challenge ahead to add 6 million every year. Dr. Anup Wadhawan, Joint Secretary (PI & BA), Department of Financial Services, Ministry of Finance in his address said that pension sector is not just a vehicle for old age security but also a source of long term funds which are critical for infrastructure development. There is absence of long term funds in India, asset liability mismatches which institutions like banks suffer from in financing infrastructure needs and long term funds requirements. Pension funds can be great source of long term funds, trigger for development of capital markets and development of new instruments by creating demand. They can provide great impetus through suitable and prudent investment guidelines for sector like capital bond markets. He highlighted that the progress of NPS since is very encouraging. NPS has covered lakh subscribers. A large fraction is from the government employees. The challenge is to expand NPS to private and unorganised sector. NPS is very credible, robust and flexible platform. Flexibility enables NPS to meet the needs of the subscribers very satisfactorily. It enables a contributor with limited means to make small contributions periodically, no great fixity about the frequency of payments and amount of payments, tremendous flexibility. The Key challenge is whether we can build an institutional framework where he is able to regularly contribute and we are able to regularly facilitate collection from him. He expressed confidence that PFRDA will live up to the challenge and create the necessary reach for its aggregators and agents. The Challenge is for the agent to be visible and extended. The address by speakers was followed by the release of Annual Report and the launch of PFRDA Website by Shri Arun Jaitley, Hon ble Union Finance Minister, Government of India. Shri Arun Jaitley in his address said that the operation and investment of funds under NPS need an effective regulator and was delighted that the pension regulator has made its own affairs public with the release of its Annual Report and the launch of its website. He expressed that the grievance Redressal system of PFRDA should also become digital. He said that the direction of the pension reforms taking place in India, coupled with the social security Swavalamban scheme that the government had launched signify a sense of dignity, self-reliance and pride as the Swavalamban scheme is for the benefit of the underprivileged section of the society. He highlighted the important aspects and implications of pension reforms, a key area of financial sector and economic reforms in the country. He said that an amendment to the Insurance Act to enhance the limit of FDI to 49 percent will also mean similar provision for the pension sector. The increase in the FDI limit to 49 percent, will permit inflow of foreign capital, investment expertise and new technology. Dr. B S Bhandari, Whole Time Member, PFRDA while proposing the vote of thanks at the Conclave mentioned that it would be PFRDA s endeavor to take pension from metro and state capitals to the remotest place in the country, from the salaried class to the unorganized masses in a manner that is affordable to the subscriber and sustainable to the system. 21

23 PFRDA AGGREGATOR S CONCLAVE 26th AUGUST, 2014 Aggregator s conclave was held on 26 th August, 2014 at India Habitat Center, Delhi in collaboration with NSDL with a view to provide a platform for the Aggregators to share their experiences, expertise and best practices on various issues and challenges faced at ground level in implementing the scheme. 85 representatives from various states participated in the conclave. The event was chaired by Shri R.V.Verma, Chairman, PFRDA. Dr. B. S. Bhandari, WTM, PFRDA, Ms. Madhavi Das, ED, PFRDA and Shri A. G. Das, CGM, PFRDA addressed the Aggregators Conclave and emphasized the importance of Swavalamban in NPS and aggregators role in mobilizing subscription through the large number of unorganized sector workers. The Chairman, PFRDA presented his vision for the future and the role of Aggregators in popularizing NPS-Swavalamban. Chairman stressed the need to introduce technology based solutions to improve subscriber services and to safeguard funds collected by the field offices of Aggregators. It was also advised to adopt best practices to overcome existing operational deficiencies. Several innovative ideas, solutions and resolution of issues like online issue of receipt, capturing of receipt issue date in SCF, real time recording of funds collected in central server of the Aggregator as well as CRA were discussed during the event. It was also decided to target different occupational groups and engagement of Govt. Departments like Dept. of Women & Child Development, Dept. of Labour and Dept. of health to target ASHA workers, Anganwadi workers & helpers and construction workers under the scheme. The importance of routing of all NPS collections through a single bank account designated for NPS at NLCC level was discussed with all Aggregators. Various operational issues like error rectification, closure of Swavalamban activities, issue of SoT by NL-CC, information of balance to subscriber on real time process were highlighted. 22

24 State Governments --- Monthly contribution crosses Rs Cr. 1. PFRDA has received highest ever & more than Rs cr. monthly contribution from State Governments. 2. In the month of July 2014, PFRDA has received Rs Cr. Following states are the main contributors in this month: Assam Cr. Rajasthan Cr. Andhra Pradesh Cr. Madhya Pradesh Cr. Uttar Pradesh Cr. 3. Following is the list of amounts received in this financial year ( ): April Cr. May Cr. June Cr. (This is also the highest ever ( Rs CR. ) quarterly contribution in a financial year) Central Autonomous Bodies (CABs) Central Autonomous Bodies (CABs) are institutions/ entities formed by Government of India under various ministries to perform certain activities/ functions in an independent manner. The employees joining CABs w.e.f are also covered under NPS like other government employees. There are 465 CABs registered in NPS architecture with the subscriber base of and the contribution to the tune of Rs cr as on * Status as on 26th July TOP 3 ministries having maximum number of CABs S.No Ministry Name Number of CABs 1 Human Resource Development Science and Technology 40 3 Health and Family Welfare 34 2 TOP 3 Cities having maximum number of CABs S.No City Name Number of CABs 1 Delhi Kolkata 21 3 Chennai 16 23

25 3 TOP 3 CABs in Subscriber base S.No CABs Name Number of subscribers Average Annual contibution(m&b) for FY (Rs. In Crores) 1 Pr.AO, Kendriya Vidyalaya Sangathan, New Delhi 2 Pr.AO, Employees State Insurance Corporation(HQ), New Delhi 3 Pr.AO, North Delhi Municipal Corporation, New Delhi 12, , , TOP 5 CABs in uploading Contribution S.No CAB Name Contribution Uploaded (Rs. In Crores) 1 Pr.AO, Kendriya Vidyalaya Sangathan, New Delhi Pr.AO, Employees State Insurance Corporation(HQ), New Delhi 3 Pr.AO, Council of Scientific & Industrial Research, New Delhi 4 Pr.AO, North Delhi Municipal Corporation, New Delhi 5 Pr. AO, All India Institute of Medical Sciences, New Delhi In provided data status as on July 26, 2014 has been considered 2. In provided data (table 2), contribution matched during financial year has been considered 3. In provided data (table 3), contribution matched and uploaded till July 26, 2014 has been considered 24

26 General Macroeconomic Indicators: Indicators Units As on 30 th As on 31 st Absolute Percentage June 2014 July 2014 Change Change 5=Col 4- Col 6= {Col 5/ Col 3 }*100-25, , Rs/$ $/Ounce (0.38) (40) 3.02 Index ON BASE =100 ON BASE 2010=100 Index ON BASE = year G-Sec Yield Net FII (Equity) Net FII (Debt) Net FII (Total) Rs/ gms 2, , (66.82) p.a. USD in bn (y-o-y) (y-o-y) 173.8* 170.5** (3.3) 3.4 (y-o-y) 8.7% 8.7% - NIL Rs Crore Rs Crore Rs Crore FDI Equity Inflows Rs Crore # 21373## *, **- For May and June 2014 respectively #, ##- For April and May 2014 respectively Figures in parenthesis are in negative 25

27 RBI Policy Rates Third Bi-Monthly Monetary Policy Statement, Released by Reserve Bank of India 5 th August 2014 Monetary and Liquidity Measures On the basis of an assessment of the current and evolving macroeconomic situation, it has been decided to: keep the policy repo rate under the liquidity adjustment facility (LAF) unchanged at 8.0 per cent; keep the cash reserve ratio (CRR) of scheduled banks unchanged at 4.0 per cent of net demand and time liabilities (NDTL); reduce the statutory liquidity ratio (SLR) of scheduled commercial banks by 50 basis points from 22.5 per cent to 22.0 per cent of their NDTL with effect from the fortnight beginning August 9, 2014; and continue to provide liquidity under overnight repos at 0.25 per cent of bank-wise NDTL and liquidity under 7-day and 14-day term repos of up to 0.75 per cent of NDTL of the banking system. Consequently, the reverse repo rate under the LAF will remain unchanged at 7.0 per cent, and the marginal standing facility (MSF) rate and the Bank Rate at 9.0 per cent. Bank Rate 9% Repo Rate 8% Reverse Repo Rate 7% Marginal Standing 9% Facility Rate CRR 4% SLR 22% The fourth bi-monthly monetary policy statement is scheduled on Tuesday, September 30,

28 Pension Fund Regulatory and Development Authority 1 st Floor, ICADR Building, Plot No.6 Vasant Kunj Institutional Area, Phase-II, New Delhi Ph.: , Fax: , Website: 27