'More banks may line as pension managers'

The Pension Fund Regulatory and Development Authority (PFRDA) is poised to welcome more banks into the pension fund management sector, aiming to broaden the scope of retirement savings investment options. PFRDA Chairman Sivasubramanian Ramann revealed that two banks, Bank of Baroda and ICICI Bank, have formally expressed interest, while Axis Bank is in the application process. Additionally, a consortium led by Union Bank is also exploring participation. The regulatory authority, which initially framed guidelines around 2012-2013, recognizes that banks have significant treasury management experience, making them well-suited for this role. The application period for banks is open until March 31. To enhance investment strategies, PFRDA is considering allowing pension funds to invest in gold and silver through ETFs, with specific limitations. Furthermore, the regulator is developing simplified retirement payout products, aiming to provide subscribers with more flexible options beyond traditional annuities. This initiative is part of a broader effort to enhance asset classes and improve the distribution of retirement funds, offering varied payout tenures to better meet individual needs.