ABSTRACT

In the previous chapter, we reviewed NPS account design. In this chapter, our analysis focuses on the governance of the NPS program and its institutions. We believe that there are many areas in which the Government of India can make substantial improvements that will benefi t the program and subscribers as participation and assets under management increase. The projected increase in assets and participation analyzed in Chapter 8 underscores the importance of taking these governance reform steps. Recommended reforms range from a realignment and clarifi cation of the roles and responsibilities of the PFRDA and the NPS Trustees to enhancing the transparency of the contractual relationships established with the private sector institutions participating in the program and improving disclosure materials provided to subscribers.