This Note assesses if there is an adequate business case for micropensions in India. It also identifies the uniqueness in the existing micropension models in India. Delivering a long term savings instrument like pensions to the low income segment is a huge distributional as well as behavioural challenge. The success of any micropension scheme will ultimately depend upon: 1) The level of trust a distributor enjoys from its clients, which is essential for a long term association; 2) The outreach of the distributor, to bring scale; 3) Efficiency, to handle operations in a timely manner, and 4)The revenue model of the scheme, which will decide whether the commission is sufficient to motivate the distributor to mobilise resources.

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