UTI Mutual Fund has entered into an arrangement with Srei Sahaj for distribution of its micro-pension products across the States of Assam, Bihar, Orissa, Tamil Nadu, Uttar Pradesh and West Bengal.
Under the initiative, investors would have to contribute a minimum of Rs 200 a month towards UTI-Retirement Benefit Pension Fund so as to enable them to receive pension in the form of periodical income after they attain the age of 58, according to Mr Jaideep Bhattacharya, Group President and Chief Marketing Officer, UTI.
“More than 87 per cent of the Indian workforce does not have access to formal or informal pension at present,” Mr Bhattacharya told newspersons on the sidelines of a press meet to announce the tie up here on Wednesday.
Srei Sahaj would provide the necessary infrastructure for the distribution of the product. “We have 23,000 common service centres (CSCs) across six States which are manned by village-level entrepreneurs. Each CSC caters to a set of six villages and a population of 10,000 people,” said Ms Meena Chaturvedi, Chief Executive Officer, Public Services and E-Learning, Srei Sahaj.
Close to 3.5 lakh investors have invested around Rs 770 crore in the fund since the time of its launch in 1994. “With this tie up we hope to add one lakh more investors over the next one year,” Mr Bhattacharya said.