Atal Pension Yojana Current Affairs

Atal Pension Yojana subscriber base touches over 97 lakh: PFRDA

According to Pension Fund Regulatory and Development Authority (PFRDA), the subscriber base of Atal Pension Yojana (APY) stood at 97.05 lakh at end of 2017-18 fiscal. It was lower than target of 1 crore set by pension regulator PFRDA.

The scheme saw addition of over 48.21 lakh subscribers in 2017-18. In 2016-17, total number of subscribers under APY reached 48.83 lakh with absolute incremental addition of 23.98 lakh accounts. In 2015-16, as many as 24.84 lakh subscribers were under APY fold.

Atal Pension Yojana (APY)

APY was launched in June 2015 with aim to provide affordable universal access to essential social security protection to unorganized work force of country, which makes major chunk of labour force (88%). It had replaced earlier government-backed pension Swavalamban scheme targeted at the unorganised sector.

It is available to all citizens of India in the age group of 18-40 years (making minimum period of contribution by subscriber is 20 years). Under scheme, subscriber will receive minimum guaranteed pension of Rs. 1000 to Rs. 5000 per month, depending on his contribution, from age of 60 years. There is no exit to scheme before age of 60. In case of death of subscriber, spouse of subscriber is entitled for same amount of pension till his or her death.

Pension Fund Regulatory and Development Authority (PFRDA)

PFRDA is a statuary pension regulatory authority of India established under PFRDA Act, 2003 enacted by Parliament. It functions under the aegis of Ministry of Finance, Department of Financial Services. It was established in August 2003 and is headquartered in New Delhi.

PFRDA promotes old age income security by establishing, developing and regulating pension funds. It also protects interests of subscribers to schemes of pension funds and related matters. It is responsible for appointment of various intermediate agencies such as Central Record Keeping Agency (CRA), Custodian, Pension Fund Managers, NPS Trustee Bank, etc.

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Government relaxes norms of Atal Pension Yojana to expand coverage

The Union Finance Ministry has relaxed norms of Atal Pension Yojana (APY) to allow small finance banks and payment banks to offer APY distribution. The move is expected to help expand coverage of the scheme and strengthen existing channels of APY distribution.

Key Facts

The APY scheme follows same investment pattern as applicable to National Pension Scheme (NPS) contribution of Central government employees. During financial year 2016-17, the scheme has earned return of 13.91%. There are more than 84 lakh subscribers registered under APY scheme with an asset base of more than Rs. 3,194 crore.

At present 233 Banks and Department of Post are involved with the implementation of the scheme. With relaxation of the norms, now 11 Payment Banks and 10 Small Finance Banks (SFBs) can also offer APY distribution.

Atal Pension Yojana

APY became operational from June 1, 2015 with an aim to provide affordable universal access to essential social security protection to unorganized work force of country, which makes major chunk of labour force (88%). It had replaced earlier Swavalamban scheme.

It is available to all citizens of India in the age group of 18-40 years (thus minimum period of contribution by subscriber is 20 years). Under scheme, subscriber will receive a minimum guaranteed pension of Rs. 1000 to Rs. 5000 per month, depending on his contribution, from age of 60 years.

There is no exit to the scheme before the age of 60. In case of death of subscriber, the spouse of the subscriber shall be entitled for the same amount of pension till his or her death.

Uttar Pradesh with 11.41 APY accounts is highest contributing state of the scheme followed by Bihar  (8.87 lakh subscribers) and Tamil Nadu (6.60 lakh).

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