Share of the elderly in the population is expected to increase to 20 per cent of Indian population by 2050. It is an imperative that senior citizens should have financial security to be involved in nation building process.
Atal Pension Yojana has made giant strides on this front with over 99 lakh APY accounts opened in FY 2021-22. The total enrollments under Atal Pension Yojana have crossed 4.01 crore as on March 2022.
Atal Pension Yojana
Atal Pension Yojana (APY) is a Government of India Scheme launched on 9th May, 2015, with an objective of creating a universal social security system for all Indians, especially the poor, the under-privileged and the workers in the unorganised sector.
The Scheme became operational w.e.f. 1st June, 2015, and is being administered by Pension Fund Regulatory and Development Authority (PFRDA). It is open to all citizens of India between 18-40 years of age having a savings bank account in a bank or post-office.
Under APY, a subscriber would receive a minimum guaranteed pension of Rs.1,000 to Rs. 5,000 per month from the age of 60 years, depending on his or her contribution. The pension would be paid to the spouse of the subscriber after the demise of subscriber and on demise of both subscriber and spouse, the pension wealth would be returned to the nominee.
How APY became a hit
The active participation of all categories of banks was behind the tremendous success. Out of the 4.01 crore enrollments, around 71% of the enrollments were done by Public-sector banks, 19% by Regional Rural Banks, 6% by Private Sector Banks and 3% by Payment and Small Finance Banks.
PFRDA has strategized to target Jan Dhan accounts holders, promote digital mode of enrollment to target young population, involving other Central ministries, State Governments and agencies like NRLM/ SRLM for APY outreach programs through webinars and town hall meetings.
Social security for Unorganised workers
APY scheme primarily focuses on workers of unorganised sectors. Out of the total APY subscribers, 45% are aged between 18 to 25 years and 4 % are female subscribers. 80% subscribers of APY scheme, opted for Rs. 1,000 pension plan and 13% for Rs. 5,000 pension plan.
For old age protection to unorganised sector workers, the Government has launched Pradhan Mantri Shram Yogi Maan-DhanYojana (PM-SYM) and National Pension Scheme for Traders, Shopkeeper and Self-Employed Persons (NPS- Traders). Under the schemes, beneficiaries are entitled to receive minimum monthly assured pension of Rs.3000/- after attaining the age of 60 years.
As on 20th March, 2022, more than 46 lakh unorganised workers have been enrolled under PM-SYM. Under NPS- Traders, 37,601 beneficiaries enrolled in 2019-20 and 6,146 enrolled in 2020-21.
The necessary infrastructure is in place by way of JAM trinity (Jan Dhan bank account, Aadhar identification number and mobile) to expand the social security coverage. The government is aiming to increase the saturation of pension schemes through spreading awareness.
