Ramesh S Arunachalam
Rural Finance Practitioner
‘The first micro-pension scheme with UTI AMC as the fund manager was launched nearly in 2005. UTI AMC has since forged partnerships with several intermediaries/third parties: SEWA (Self Employed Women’s Association), a micro finance institution based in Ahmedabad; COMPFED, a federation formed by milk producers in Bihar; Paradip Port Trust; and an urban cooperative bank run by women’. Other partnerships of UTI include SHEPHERD in Trichy, which the then Hon Finance Minister inaugurated
‘The key characteristics of the UTI AMC micro-pension scheme, whose process is given in Figure 1, are:
a) ‘Contribution of small sum ranging from Rs.50 to Rs.200 per month;
b) Flexibility in payments (monthly or yearly contributions are not mandatory), and
c) Presence of a neutral third party, like an MFI, NGO, Cooperative, Self help groups (SHG) or an NGO, whose typical roles are described in box 1’
Currently, while the UTI AMC micro-pension scheme has been operational for some time, feedback is being sought by the intermediaries and hopefully, it will feedback into product and process design.