UTI MF Ties Up With REPCO Bank

UTI Mutual Fund (UTI MF) has today entered into a customised arrangement with The Repatriates Co-op. Finance & Development Bank Ltd. (REPCO Bank) for providing the members of Self Help Groups associated with REPCO Foundation for Micro Credit, an investment opportunity through a Micro-Pension initiative under UTI-Retirement Benefit Pension Fund.

The Micro-Pension initiative facilitated by UTI Mutual Fund and REPCO Bank aims to provide the much needed social security cover for the low income group during their old age. Under the initiative, members of the Self Help Groups associated with REPCO Foundation for micro credit, will contribute minimum amount of Rs.100 every month towards UTI-Retirement Benefit Pension Fund up to the age of 55 years so as to enable them to receive pension in the form of periodical income/cashflow after they reach the age of 58 years.

REPCO Bank was established in 1969 by the Government of India and is under the administrative control of the Ministry of Home Affairs, Government of India. REPCO Bank has promoted REPCO Foundation for Micro Credit, an NGO for extending supporting services to Self Help Groups financed by REPCO Bank solely with a view to increase the income level and standard of life of the group. The Bank has a large concentration of Self Help Groups in Southern States. Presently there are 3500 Self Help Groups consisting more than 70000 members of which majority are women beneficiaries. Initially around 10000 members will be joining the scheme.

Shri U K Sinha, Chairman and Managing Director, UTI AMC said, “The Micro-Pension initiative will help inculcating the habit of regular savings among the low income group, which will help them in planning for their future and will also enable them to share the benefits of growth of the Indian economy.”

“We hope that this pension movement will spread across workers of all categories and even those working in big establishments or professionals with higher income will also follow the example of pioneers like SEWA or REPCO Bank in understanding how it is important for them to build their own pension amounts during their working life. ” Shri Sinha added

UTI-Retirement Benefit Pension Fund is an open-end tax saving-cum-pension fund. The scheme has been notified by Central Government in the Gazette Notification dated November 3, 2005 as a Pension Fund eligible under sub-section (2), clause (xiv) of section 80C of Income- tax Act, 1961 for assessment year 2006-07 and subsequent assessment years.

The investment objective of the scheme is to primarily provide pension in the form of periodical income/cash flow to the members to the extent of redemption value of their holding after they attain the age of 58 years. The scheme invests minimum 60% and maximum 100% in debt and balance in equity.