Small finance banks and payment banks to offer Atal Pension Yojana

Payments Banks and Small Finance Banks are now allowed to sell Atal Pension Yojana (APY). In a statement the finance ministry said that given the strength, expertise and reach of these new age banks, they can play a pivotal role in outreach of subscribers under APY. At present there are 11 Payment Banks and 10 Small Finance Banks.

“Participation in APY not only builds a pensioned society but also adds sustainable fee income to banks by way of attractive incentive for mobilizing Rs 120-150 for each APY Account,” the ministry noted in its statement.

At present there are more than 84 lakh subscribers registered under the APY scheme with an asset base of more than Rs 3,194 crore.


The scheme follows the same investment pattern as applicable to the NPS contribution of Central government employees. During the year 2016-17, it has earned a return of 13.91%. At present 233 Banks and Department of Post are involved with the implementation of the scheme.

The scheme which became operational from June 2015 is available to all Indian citizens in the age group of 18-40 years. Under the scheme, a subscriber would receive a minimum guaranteed pension of Rs 1,000 to Rs 5,000 per month, depending upon his contribution, from the age of 60 years.

The highest contributing State is Uttar Pradesh with 11.41 APY account followed by Bihar & Tamil Nadu with 8.87 lakh & 6.60 lakh subscribers respectively.