APY a success story

Atal Pension Yojana (APY) a flagship social security scheme of the government of India has completed eight years of successful implementation. The scheme was launched on May 9, 2015, by Prime Minister Narendra Modi with the objective of delivering old age income security to all citizens of India, particularly to the workers in the unorganised sector.

The scheme has been implemented comprehensively across the country covering all States and Union Territories with total enrolments crossing the mark of 5.25 crore. APY enrolments have continuously shown an increasing trend since its inception. In new enrolments, there has been a growth of 20 per cent in FY23 over FY22 in comparison to a growth of 25 per cent in FY22 over FY21. As on date, the total assets under management (AUM) in APY is more than Rs 28,434 crore and the scheme has generated an investment return of 8.92 per cent since inception of the scheme.

Talking to Bizz Buzz, Hemant G Contractor, former chairman, PFRDA, said, “APY has been a very successful pension scheme for the relatively less affluent section of the unorganised sector, because of its user friendly features, low cost, assured pension and a range of choices.”

The scheme has been marketed well by banks, which have used their extensive branch and correspondent network to reach out to customers. The scheme has been attuned to market needs from time to time, and therefore appeals to the target sector. I am sure the scheme will continue to flourish in the future, he said.

This feat of bringing in the most vulnerable sections of society under the coverage of pension could not have been possible without the untiring efforts of Public and Private Banks, Regional Rural Banks, Payments Banks, Small Finance Banks, the Department of Posts, and the support extended by the State Level Bankers’ Committees.

New APY account can be opened by any Indian citizen, in the age group of 18-40 years, who is having a savings bank account and who is not an income taxpayer. Under APY, a subscriber would receive a lifelong minimum guaranteed pension of Rs 1000 to Rs 5000 per month from the age of 60 years, depending on their contributions, which itself would vary based on the age of joining the APY scheme. The same pension would be paid to the spouse of the subscriber after the demise of the subscriber and on the demise of both the subscriber and spouse, the pension wealth as accumulated till age 60 of the subscriber would be returned back to the nominee.