The Reserve Bank on Friday asked urban co-operative banks to appoint nodal officers for implementation of the government’s flagship scheme, Atal Pension Yojana (APY), which provides for a minimum pension of Rs 1,000-5,000, depending upon contribution, according to PTI.
The APY, launched by Prime Minister Narendra Modi earlier this month, is focused on all citizens in the unorganised sector, who join the National Pension System (NPS), administered by the Pension Fund Regulatory and Development Authority (PFRDA).
As per the 66th Round of NSSO Survey of 2011-12 workers in unorganised sector constitute 88% of the total labour force of 47.29 crore. In order to take care of them in their old age the Government announced the introduction of universal social security schemes in the Insurance and Pension sectors for all Indians, specially the poor and the underprivileged, in the Budget for the year 2015-16.
Therefore, it has been announced that the Government will launch the Atal Pension Yojana (APY), which will provide a defined pension, depending on the contribution, and its period. The APY will be focussed on all citizens in the unorganised sector, who join the National Pension System (NPS) administered by the Pension Fund Regulatory and Development Authority (PFRDA).
Under the APY, the subscribers would receive the fixed minimum pension of Rs. 1000 per month, Rs 2000 per month, Rs. 3000 per month, Rs. 4000 per month, Rs. 5000 per month, at the age of 60 years, depending on their contributions, which itself would be based on the age of joining the APY.
The minimum age of joining APY is 18 years and maximum age is 40 years. Therefore, minimum period of contribution by any subscriber under APY would be 20 years or more. The benefit of fixed minimum pension would be guaranteed by the Government. The APY would be introduced from 1st June, 2015.
More than 1700 urban cooperative banks, among others are geared to make the dream project successful.