PFRDA Current Affairs - 2020

22nd Financial Stability and Development Council meeting chaired by Finance Minister

On May 28, 2020, the Union Finance Minister Nirmala Sitaraman chaired Financial Stability and Development Council meet.

Highlights

The meeting reviewed current domestic and global economic situation, financial vulnerabilities issues, liquidity of Micro financial institutions, Non-Banking Financial corporations, regulatory responses, etc. The council noted that COVID-19 posed a great threat to the global financial system and the timing of recovery is uncertain.

About the Council

The financial stability and development council is an apex body constituted by GoI. The idea was mooted in 2008 by the Raghuram Rajan Committee. The Council was set up in 2010 by the then Finance Minister Pranab Mukerjee.

The council composes of Governor of RBI, chief economic advisor, secretaries and chairman of SEBI (Securities and Exchange Board of India), IRDA (Insurance Regulatory and Development Authority), PFRDA (Pension Fund Regulatory and Development Authority), IBBI (Insolvency and Bankruptcy Board of India). The Finance Minister chairs the meeting.

Functions of the council

The Council deals with issues such as financial sector development, financial stability, inter-regulatory coordination, financial inclusion, financial literacy.

Apart from these, the council also coordinates with India’s International interfaces such as Financial Action Task Force. The Financial Minister has powers to change the functions of the council from time to time. Currently, the council is working to deal with financial issues created by COVID-19.

Enrolments in ESIC Social Security Scheme increases to 821,000

On May 23, 2020, the payroll data of the Employees State Insurance Corporation (ESIC) was released. The data says that around 821,000 new members have joined ESIC social security scheme.

Highlights

The data was released by National Statistical Office (NSO). According to the data the subscribers to the scheme in 2018-19 were 14.9 million and it increased to 38.3 million in March 2020.

The NSO report issues data of several social security schemes such as PFRDA, EPFO. This is being done since 2018 covering the period 2017-18.

ESIC

The Employment State Insurance Scheme was launched in 1952 under the Employees State Insurance Act, 1948. The act was the first legislative social security step for workers in India.

The scheme was designed to help employees fight against their sickness, disablement, maternity and death due to employment.

Recent Developments in the Scheme

In June 2020, the Government of India reduced the rate of contribution under the scheme. The employer contribution was reduced from 4.75% to 3.25% and Employee contribution was reduced from 1.75% to 0.75%. Also, the employees that are earning Rs 137 or less per day are exempted from payment of their contribution.

Recently, to meet the salary bills of the workers during COVID-19 lock down period, the Government of India ruled to appropriate funds of ESIC