In a major policy move to strengthen social security for India’s informal workforce, the Union Cabinet on January 21, 2026, approved the continuation of the Atal Pension Yojana (APY) through the financial year 2030-31, along with extended government funding for promotional and developmental activities as well as gap funding to ensure the scheme’s long-term viability.
The decision, chaired by Prime Minister Narendra Modi, underscores the government’s commitment to enhancing old-age income security for millions of low-income and unorganised sector workers. Under the extended framework, financial support will continue for awareness campaigns, capacity building and closing viability gaps, critical elements necessary for widening the scheme’s outreach and sustainability.
Atal Pension Yojana, launched in May 2015, provides subscribers with a government-guaranteed monthly pension ranging from Rs 1,000 to Rs 5,000 after age 60, depending on their contributions. The scheme is administered by the Pension Fund Regulatory and Development Authority (PFRDA) and is implemented through a network of banks and the Department of Posts.
As per recent government data, APY has crossed 8.34 crore enrollments, reflecting robust participation across age groups, especially among youth and women. Nationwide outreach campaigns in multiple languages, use of digital platforms and collaboration with state banking committees have significantly boosted adoption of the scheme.
Cooperative banks, in particular, have emerged as key partners in this growth trajectory. Their deep presence in rural and semi-urban markets, combined with trust-based relationships within local communities, has helped bridge pension literacy gaps often left unaddressed by larger commercial banks. Institutions such as Shri Mahila Sewa Sahakari Bank, AP State Cooperative Bank, South Canara District Central Cooperative Bank and several others have reported exceptional APY enrollment achievements, often surpassing targets by more than 100 percent.
The cooperative banking model’s strength lies in its close familiarity with farmers, artisans, self-employed workers and small traders. segments that form the core demographic of the unorganised workforce. This community-centric approach has also contributed to rising female participation in the pension scheme, with cooperatives and affiliated self-help groups playing a vital role in educating women about the benefits of long-term retirement savings.
PFRDA officials, at recent felicitation events, have lauded the cooperative sector’s contribution, noting that these banks not only meet enrollment targets but do so in regions where formal financial inclusion is most challenging. Their efforts are seen as instrumental in driving APY towards its goal of universal pension coverage, aligning closely with the government’s broader vision of a financially inclusive and socially secure Viksit Bharat @2047.
With the Cabinet’s renewed backing and the cooperative banking network’s sustained drive, the Atal Pension Yojana is poised to expand its reach further, strengthening retirement security for millions across India’s hinterlands.