The central government has decided to increase foreign direct investment (FDI) limit in the pension sector to _________ percent.

The correct answer is option 3) which is 74%

Solution: The government will increase the foreign direct investment (FDI) limit in the pension sector to 74 percent and a Bill in this regard is expected to come in the next Parliament session.

Notes:

• Parliament has approved a Bill to increase the FDI limit in the insurance sector from 49 percent to 74 percent.
• Amendment to Pension Fund Regulatory and Development Authority (PFRDA) Act, 2013 seeking to raise FDI limit in the pension sector may come in the monsoon session or winter session depending on various approvals.
• The amendment Bill may contain the separation of NPS Trust from the PFRDA.
• The powers, functions, and duties of the NPS Trust, which are currently laid down under the PFRDA (National Pension System Trust) Regulations 2015, may come under a charitable trust or the Companies Act.

Other Key Notes

• The PFRDA was established for promoting and ensuring the orderly growth of the pension sector with sufficient powers over pension funds, the central recordkeeping agency, and other intermediaries.
• The National Pension System (NPS) was introduced by the Government of India to replace the defined benefit pension system.
• NPS was made mandatory for all new recruits to the central government service from January 1, 2004, (except the armed forces in the first stage) and has also been rolled out for all citizens with effect from May 1, 2009.