Axis Bank will replace state-run Bank of India (BoI) as the ‘trustee bank’ for the National Pension System (NPS) from July onwards. According to Pension Fund Regulatory and Development Authority (PFRDA), the public sector lender has been 'appointed as the new NPS Trustee Bank with effect from July 1, 2013 in place of Bank of India (current Trustee Bank)' for the period of two years.
However, Bank of India was appointed as ‘Trustee Bank’ for NPS for 5 years. Nevertheless, at discretion of PFRDA/NPS Trust, the contract can be renewed annually for another maximum tenure of three years. NPS Trust is responsible for handling funds under the NPS. The Trust holds accounts with the bank designated as ‘NPS Trustee Bank’.
