You have done well to point out that banks and other financial intermediaries (‘Attractive over the long term’, May 4) have little incentive to sell the New Pension Scheme to their customers since the commissions are a lot more on mutual funds and insurance products. What you have not taken into account is the substantially higher earnings from the New Pension Scheme since the fees are virtually zero. What the government needs to do is to advertise this fact. That while it is true, the initial fees may add up to the 12-13 per cent you talk of when savings amounts are low, the long-term savings more than make up for this. This will have to be done by the Pension Fund Regulatory Development Authority (PFRDA) since few others in the business are making enough money from the scheme to want to advertise it. The Central Record-keeping Agency, NSDL, will make a lot of money from the scheme, but its role is that of a record-keeper and so will not advertise the scheme.
Sanjeev Bhaskar, Mumbai