Uttar Pradesh, Bihar and West Bengal are the top three states for APY enrolments.
Deepak Mohanty, a whole-time member of Pension Fund Regulatory and Development Authority (PFRDA), said the government was targeting 10 million enrolments in 2021-22 under the Atal Pension Yojana (APY). The total enrollment during the first half of FY22 has reached 3.98 million. In FY21, the total enrollment was at 7.91 million.
The APY is the government-backed, voluntary scheme meant to provide old-age income security in the form of minimum assured pension (ranging from Rs 1,000-5,000/month), in proportion to individual contribution. The APY with defined contribution and defined benefits had returns of around 10%.
The PFRDA strategy was to tap banks, non-banks, cooperative banks and payment banks to push the APY.
He urged banks to go in for digital onboarding of subscribers through their websites, e-banking and apps as younger people would be more enthusiastic if digital options were given to them. The financial inclusion drive would not be complete unless people were given a full bouquet of financial products so they wanted more people to join in, Mohanty said.
Mohanty was in Pune on Monday at the Bank of Maharashtra State Level Bankers’ Committee APY outreach programme. The PFRDA is carrying out the APY outreach programme across 40 locations in the country and this was the first such meeting in the series.
There are 34 million subscribers to the APY scheme and coverage is around 7%. But there’s still enough growth potential. At present, the State Bank of India, Bank of Baroda and Canara Bank are among the top three banks in enrolment to the APY. Uttar Pradesh, Bihar and West Bengal are the top three states for APY enrolments.