The government is currently examining a proposal made by Pension Fund Regulatory and Development Authority (PFRDA) to double the pension limit under Atal Pension Yojana (APY) to Rs.10,000 per month from the existing ceiling of Rs 5,000.
The proposal has been sent to the finance ministry as the experts feel a need to increase the pension limit.
Based on the feedback received from the market, PFRDA Chairman Hemant G Contractor shared that many people felt that Rs. 5,000 at the age of 60 years, 20-30 years from now, will not be sufficient.
PFRDA also aims to increase the current 10.2 million subscriber base of APY with this move.
We have seen the proposal and it is under our active examination,” said Madnesh Kumar Mishra, joint secretary at the department of financial services DFS)
Besides doubling the pension limit, PFRDA has sent two more proposals to the ministry. While one is for the auto-enrolment for APY, the other one is regarding an increase in the maximum age bar to enter the scheme to 50 years. Currently, the age limit for enrolling for APY is 18-40 years. And PFRDA thinks that further increasing this age criterion to 18-50 years will help in expanding the subscriber base.
In 2017-18 PFRDA added about 5 Mn new subscribers under the scheme and now it hopes to add another 6-7 million in the current financial year.