Small Finance Banks, Payment Banks to offer Atal Pension Yojna

Speed Post News Network

New Delhi : Atal Pension Yojana (APY) is a Government of India’s Old Age Pension Scheme being implemented through all Banks across the country as per the mandate received from the Ministry of Finance and monitored periodically at PMO. PM Narendra Modi had launched the Social Security Scheme on May 9, 2015, and dedicated the First Ever Guaranteed Pension Product to the people of the country.

Payments Banks and Small Finance Banks are new model of banks conceptualized by the Reserve Bank of India (RBI). Eleven Payment Banks and 10 Small Finance Banks have received license from Reserve Bank of India to start banking operations in India. Small Finance Banks and Payment Banks are new age banks and given the strength of the bank, expertise and its reach, Small Finance Bank and Payment Bank can play a pivotal role in outreach of subscribers under APY, according to a PIB release.

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. Participation in APY not only builds a pensioned society but also adds sustainable fee income to Banks by way of attractive incentive for mobilizing APY @ Rs 120-150 for each Account.

In order to familiarize these Small Finance Banks and Payment Banks with Atal Pension Yojana (APY), the Pension Fund Regulatory and Development Authority (PFRDA) has conducted an orientation meeting on January 15, 2018, in New Delhi, for all the Small Finance Banks and Payment Banks and discussed the implementation of scheme in these banks. All Small Finance Bank and Payment Bank have positively responded to the initiative undertaken by PFRDA. As on January 23, 2018, there are more than 84 lacs subscribers registered under the APY Scheme with an asset base of more than Rs 3,194 crore.

Ujjivan Small Finance Bank, Jnaalakshmi 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, and Fincare Small Finance Bank are the Small Finance Banks under operation. Paytm Payment Bank, Airtel Payment Bank, India Post Payment Bank and Fino Payment Bank are the Payment Banks under operation.