The move is expected to help expand the scheme’s coverage.  

The Centre would now allow small finance banks and payment banks to offer the Atal Pension Yojana (APY), which is expected to significantly increase the coverage of the scheme.

“To strengthen the existing channels of APY distribution, it is felt that these new payments banks and small finance banks will provide a boost to the outreach of subscribers under APY,” the Ministry of Finance said in a statement.

Pensioned society

“Participation in APY not only builds a pensioned society but also adds sustainable fee income to banks by way of attractive incentive for mobilising APY at the rate of Rs. 120-150 for each account.” So far, 11 payment banks and 10 small finance banks have received licences from the Reserve Bank of India to start banking operations in India.

“In order to familiarise these small finance banks and payment banks with APY, the Pension Fund Regulatory and Development Authority (PFRDA) conducted an orientation meeting on January 15, 2018 in New Delhi,” the statement added.

“All small finance banks and payment banks have positively responded to the initiative undertaken by PFRDA and have committed towards the greater cause of building a pensioned India.”

As of January 23, 2018, there were more than 84 lakh subscribers registered under the APY with an asset base of more than Rs. 3,194 crore, the government said.