Govt relaxes Atal pension plan norms

Govt relaxes Atal pension plan norms

Context

The Centre would now allow small finance banks and payment banks to offer the Atal Pension Yojana (APY), which is expected to significantly increase the coverage of the scheme.

Payment banks can offer the product

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

Pensioned society

Participation in APY not only builds a pensioned society but also adds sustainable fee income to banks by way of attractive incentive for mobilising APY at the rate of ₹120-150 for each account.

Orientation meeting held

So far, 11 payment banks and 10 small finance banks have received licences from the Reserve Bank of India to start banking operations in India.

In order to familiarise these small finance banks and payment banks with APY, the Pension Fund Regulatory and Development Authority (PFRDA) conducted an orientation meeting on January 15, 2018 in New Delhi