Uttar Pradesh has topped the Atal Pension Yojana (APY) clocking maximum 1.2 million of the total 8.6 million enrolments under the flagship social security scheme of the Narendra Modi government. APY is a pension scheme for the unorganised sector launched in June 2015. The scheme had replaced the previous government's Swavalamban Yojana, which was non-guaranteed and had also failed to enthuse the targetted population. “With about 1.2 million enrolments under APY, UP accounts for almost 15 per cent of the total enrolments,” Pension Fund Regulatory and Development Authority (PFRDA) executive director A G Das told Business Standard here. UP is followed by Bihar, Tamil Nadu, Maharashtra and Karnataka in the enrolment numbers. Currently, APY total corpus or Assets Under Management (AUM) stands at over Rs 32 billion, which is expected to touch Rs 34 billion by the end of this fiscal. “We are targetting total enrolments of 10 million under APY by end of March 2018,” he informed. During 2016-17, APY had registered 2.5 million new accounts, while in the current fiscal, total enrolments already exceed 3 million. UTI, LIC and SBI are the fund managers for the APY. PFRDA had organised ‘People First Campaign’ in UP during 7-20 November for sourcing APY accounts. During his period, over 110,000 new accounts were opened in the state. Das said according to guidelines, APY corpus could be invested to a maximum of 50 per cent in government bonds and securities, while 40 per cent could be invested in corporate bonds.
The corpus could be invested in shares subject to the ceiling of 15 per cent. “This is the only social security pension scheme in the country, which is guaranteed by the Centre, while all other schemes are contributory in nature.”People between the 18-40 age group are eligible to subscribe to the APY. An estimated 450 million Indian population is currently in this age bracket, which indicates a large untapped potential for the scheme to penetrate further and deeper, especially in UP, which is estimated to have 70 million population in the targetted age segment, Das underlined. About 60 per cent of the total APY subscribers have opted to receiving Rs 1,000 monthly pension, when they complete 60 years of age, with 28 per cent opting for Rs 5,000 pension. The maximum enrolments have emanated from the age bracket of 21-35 years. To expand APY outreach, all commercial banks viz public and private sector banks, regional rural banks, rural and urban cooperative banks and the department of post are involved in its registration. Meanwhile, another central government promoted scheme, National Pension Scheme (NPS) has subscriber base of 19.2 million with AUM of Rs 2.20 trillion. However, this is not a guaranteed scheme, which serves the age group of 18-65 years. Das informed that both APY and NPS had been yielding good returns of almost 10.5 per cent.