The Union Government has allowed Small Finance Banks and Payments Banks to offer Atal Pension Yojana (APY).
The Payments Banks and Small Finance Banks are a new model of banks conceptualised by the Reserve Bank of India (RBI). In total, 11 Payment Banks and 10 Small Finance Banks have received the license from Reserve Bank of India to start banking operations in India.
The Small Finance Banks and Payment Banks are new age banks and given the strength, expertise and reach of these banks, they can play a pivotal role in the outreach of subscribers under APY.
• The decision of allowing the Small Finance Banks and Payments Banks to offer APY is mainly aimed at strengthening the existing channels of APY distribution.
• These banks are expected to provide a boost to the outreach of subscribers under APY.
• With their participation, the government would not only be able to build a pensioned society but also add sustainable fee income to Banks by offering attractive incentives for mobilizing APY, at Rs 120-150 per account.
• At present, over 84 lakh subscribers are registered under the APY scheme with an asset base of more than Rs 3194 crore.
To familiarise the banks with Atal Pension Yojana and discuss its implementation, the Pension Fund Regulatory and Development Authority (PFRDA) conducted an orientation meeting on January 15, 2018 in New Delhi.
About Atal Pension Yojana (APY)
The social security scheme was launched on May 9, 2015. It is the Union Government’s first-ever guaranteed pension product to the people of the nation.
It is available to people falling in the age group of 18 to 40 years.
Under the scheme, the subscriber would receive a minimum guaranteed pension of 1,000 to 5,000 rupees per month from the age of 60 years depending upon the contribution.
Following is the list of Small Finance Banks and Payment Banks that will offer APY:
Small Finance Banks
• Ujjivan Small Finance Bank.
• Janalakshmi Small Finance Bank.
• Equitas Small Finance Bank.
• A U Small Finance Bank.
• Capital Small Finance Bank.
• ESAF Small Finance Bank.
• Utkarsh Small Finance Bank.
• Suryoday Small Finance Bank.
• Fincare Small Finance Bank.
• Paytm Payment Bank.
• Airtel Payment Bank.
• India Post Payment Bank.
• Fino Payment Bank.