In compliance with the PFRDA (Redress of Subscriber Grievances) Regulations, 2015, the Pension Fund Regulatory and Development Authority (PFRDA) has appointed an ombudsman on a contract basis.
A statutory regulatory organisation called PFRDA was created with the goals of developing the Indian pension industry and promoting old age income security. By March 31, 2023, there will be around 63.2 million subscribers enrolled with the National Pension System (NPS) or other PFRDA-regulated or -managed plans.
NPS's Special Architecture
The NPS has a distinctive architecture that allows for the efficient and economical delivery of services by using a variety of intermediaries, such as trustee banks, pension funds, central recordkeeping agencies, and custodians.
Currently, customer interface is provided by nodal offices in the public sector, banks, and financial institutions. The NPS subscriber base covers a wide range of demographics and industry sectors, including individuals in the unorganised sector.
The PFRDA Ombudsman's Job
The PFRDA Ombudsman is a neutral, unbiased official chosen by PFRDA to look into and address problems involving PFRDA-regulated organisations.
The Ombudsman has the authority to make orders for the resolution of complaints as well as to call witnesses and gather evidence. Concerns regarding non-receipt of benefits, non-credit of contributions, incorrect advice, mis-selling, and complaints regarding services provided by PFRDA-regulated entities, such as pension funds, central record-keeping agencies, trustees, custodians, etc., may all be brought before the PFRDA ombudsman.
How Can the Investor Advocate for PFRDA Help?
An important step towards giving investors a way to voice their grievances and concerns about firms regulated by the PFRDA is the establishment of the PFRDA Ombudsman.
The Ombudsman has the power to call witnesses and gather evidence, and its rulings are binding on the parties. This will make it possible for investors to resolve their complaints quickly and affordably, without having to go through drawn-out and costly legal processes.
Experts believe that the appointment of the PFRDA Ombudsman is a move in the right direction towards enhancing investor protection, transparency, and accountability in the pension industry. The ombudsman's establishment of a specific system to look into and address issues regarding
Entities under PFRDA regulation would also contribute to the development of investor confidence, especially among unorganised sector investors.
Additionally, the ombudsman's impartial and independent operations will act as a check on how these organisations behave, promoting the adoption of just and moral behaviour. According to experts, the PFRDA Ombudsman's appointment would aid in the expansion and development of India's pension industry.