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Atal Pension Yojana [UPSC Notes GS-II]

Atal Pension Yojana is a pension scheme under the Government of India. This scheme replaces the Swavalamban Yojana and was established to provide old age income security to the workers belonging to the unorganised sector. The Atal Pension Yojana was launched by PM Narendra Modi on 9th May 2015 in Kolkata. The scheme focuses on encouraging workers of unorganised sectors to save for their future.

Atal Pension Yojana Scheme – Latest Update

The flagship social security scheme of the Government of India – ‘Atal Pension Yojana’ (APY) – has completed five years of implementation on 9th May 2020 and garnered over 2.2 crore subscribers.

Government schemes are important for IAS Exam and this article will provide you with all the important facts about this scheme.

Aspirants can check the following links to align their preparation for UPSC 2022 examination:

Important Facts about Atal Pension Yojana

Atal Pension Yojana
Date of Launching 9th May 2015
Launched By Prime Minister Narendra Modi
Regulatory Body Pension Fund Regulatory and Development Authority (PFRDA)
Department Department of Financial Services, Government of India
Ministry Ministry of Finance
Pension Fund Regulatory and Development Authority

  • It is the statutory Authority established by an enactment of the Parliament, to regulate, promote and ensure orderly growth of the National Pension System (NPS).
  • It works under the Department of Financial Services under the Ministry of Finance.

Target Segment: The scheme was launched on 9th May 2015, with the objective of creating a universal social security system for all Indians, especially the poor, the underprivileged and the workers in the unorganised sector.

Benefits of Atal Pension Yojana

The Atal Pension Yojana (APY) is a government scheme that became operational from 1st June 2015 and mainly focused on providing old age security to the unorganised workers who are not covered under any of the social security schemes.

The benefits provided by the Atal Pension Yojana are mentioned below:

  • The scheme provides the subscribers with a fixed pension ranging between Rs.1000 to Rs. 5000. The pension is provided if he/she joins and contributes between the age of 18 years and 40 years. The contribution level varies as per the conditions which is low if the subscriber joins the scheme early and might increase if he/she joins late.
  • After the death of the subscriber, the spouse is eligible for availing the same benefits provided by the pension.
  • The indicative pension wealth will be returned to the nominees after the death of a spouse.
  • Contributions to the Atal Pension Yojana (APY) is eligible for tax benefits similar to the National Pension System (NPS).
National Pension System

  • NPS is a government-sponsored pension scheme. It was launched in 2004 for government employees.
  • Now, any individual citizen of India (both resident and non-resident) in the age group of 18-65 can join NPS.

Eligibility for Atal Pension Yojana

The workers will have to follow the below-mentioned criteria to be eligible for the Atal Pension Yojana:

  • Atal Pension Yojana (APY) is open to those who are not a member of any statutory social security scheme.
  • Any individual aged between 18 years to 40 years and have a bank account are eligible for the scheme.
  • He/She will have to provide proof of possession along with their Aadhaar number or must undergo Aadhaar authentication.
  • The subscriber should get their Aadhaar number recorded in the APY pension account as well as in their savings account.
  • Providing of the Aadhar number is important for the debit of the contribution instalments and for the credit of government co-contribution.
The success of the APY Scheme

The journey of APY over these five years has been phenomenal and as on 9th May 2020 –

  1. The total enrolment under the scheme stood at 2,23,54,028.  
  2. During the first two years of its launch, almost 50 lacs subscribers were enrolled which doubled to 100 lacs in the third year and the milestone of 1.50 crore was achieved in the 4th year. 
  3. In the last financial year i.e. 2020, almost 70 lacs subscribers were enrolled under the scheme.
  4. Apart from remarkable enrolments, the scheme has been implemented comprehensively across the country covering all states and Union Territories with a male to a female subscription ratio of 57:43.
  5. As on 30th April 2020, the total number of subscribers under NPS and Atal Pension Yojana has crossed 3.46crore 

Atal Pension Yojana - 5 Years

Frequently asked Questions about Atal Pension Yojana


What is Atal Pension Yojana?

Atal Pension Yojana formerly known as Swavalamban Yojana is a government-backed pension scheme, primarily targeted at the unorganised sector. It was mentioned in the year 2015 Budget speech by the Finance Minister Arun Jaitley.

What is the incentive behind the Atal Pension Yojana?

In order to incentivize people to enroll in this scheme and widen its reach, the government announced that it would co-contribute 50% of the total contribution or ₹1,000 (US) per annum, whichever is lower, to each eligible subscriber account, for a period of 5 years. Only subscribers who had enrolled in APY between 1 June 2015 and 31 March 2016, and were not beneficiaries of any social security schemes, besides not having any taxable income were eligible for this co-contribution.

Atal Pension Yojana – UPSC Notes:- Download PDF Here

Related links:

Pradhan Mantri Kisan Maan-Dhan Yojana UPSC Syllabus Current Affairs
UPSC Notes GS – III Question Paper 2019 UJALA Scheme
Startup India UDAY Stand-Up India


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