NEW DELHI: The Government’s social security scheme in the name of late BJP stalwart Atal Bihari Vajpayee is struggling to find takers three years after its launch. The Atal Pension Yojana (APY), the social security scheme aimed at people in the unorganised sector who do not have employment security, could attract just 1.08 crore people till July 2018, though the target population was over 40 crore.
Under the APY, subscribers are entitled to a pension in the range of Rs 1,000 to Rs 5,000 per month at the age of 60, depending on their contributions.
However, seeing the poor response, the government may increase the pension upper limit from Rs 5,000 to Rs 10,000. The APY was launched in 2015 to encourage the underprivileged people to voluntarily save for retirement as they constitute 88 per cent of the total labour force of 47.29 crores.
Officials said banks were given the target to enroll 2 crore subscribers up to December 31, 2015, in the first phase. While 24.60 lakh could be enrolled between June 2015-March 2016, the next year saw a dip, with 23,93,515 people opting for APY.
However, following advisories by the government, the number shot up to 48,50,205 in 2017-18. Till July, over 11.50 lakh people have been enrolled, but, even then the initial target of 2 crore people has not been met.
“The maximum amount of pension one can get per month is Rs 5,000. Given the inflation, anybody who wants to invest thinks that Rs 5,000 per month after 20 years will hardly be anything. This has discouraged people.” Yogender Shukla, an insurance advisor said.
A bank official has his own explanation.
“Banks have been given targets, but many bank officials are already so burdened with other government schemes that the APY couldn’t be promoted properly. Most of the social security schemes are also being executed by banks.”
Significantly, the Pension Fund Regulatory and Development Authority submitted a proposal to increase the limit under the APY and the issue is under examination. Under the APY, the Centre allocates budget to the PFRDA for incentive and co-contribution.