Atal Pension Yojana to continue till 2030-31

 

 

THE Union Cabinet, chaired by Prime Minister Narendra Modi, on Wednesday approved the continuation of the Atal Pension Yojana (APY) up to the financial year 2030-31 along with extension of funding support for promotional and developmental activities and gap funding. “The scheme will continue up to 2030-31 with Government support for Promotional and Developmental activities to expand outreach among unorganised workers, including awareness and capacity building. Gap funding to meet viability requirements and ensure sustainability of the scheme,” according to a statement issued by the Finance Ministry The APY scheme ensures old-age income security for millions of low-income and unorganised sector workers. It aims to enhance financial inclusion and supports India’s transition to a pensioned society.

 

The scheme also strengthens the vision of Viksit Bharat @2047 by providing sustainable social security, the statement said. The APY scheme was launched on May 9, 2015, to provide old-age income security to workers in the unorganised sector. The scheme offers a guaranteed minimum pension of Rs 1,000 to Rs 5,000 per month, starting at age 60, based on contributions. As of January 19, 2026, over 8.66 crore subscribers have been enrolled, making APY a cornerstone of India’s inclusive social security framework. Sustained Government support is essential for continued awareness, capacity building, and bridging of viability gaps to ensure the scheme’s sustainability, the statement explained. According to APY data, around 70.44 per cent of the total enrolments in the scheme have been done by public-sector banks, 19.80 per cent by regional rural banks, 6.18 per cent by private sector banks, 0.37 per cent by payment banks, 0.62 per cent by small finance banks and 2.39 per cent by cooperative banks. The Government pension scheme achieved a growth of 24 per cent in gross enrolments at the end of FY 23-24 and is rapidly gaining popularity.

 

 

THE Union Cabinet approved equity support of Rs 5,000 crore to Small Industries Development Bank of India (SIDBI). “The equity capital of Rs 5,000 crore shall be infused into SIDBI by the Department of Financial Services (DFS) in three tranches of Rs 3,000 crore in financial year 2025-26 at the book value of Rs 568.65 as on March 31, 2025 and Rs 1,000 crore each in financial years 2026-27 and 2027-28 at the book value as on March 31 of the respective previous financial years,” according to a Finance Ministry statement. After equity capital infusion of Rs 5,000 crore, the number of MSMEs to be provided financial assistance is expected to increase from 76.26 lakh at the end of the financial year 2025 to 102 lakh, adding approximately 25.74 lakh new MSME beneficiaries by the end of the financial year 2028. According to the latest data (as on September 30, 2025) available from the official website of the Ministry of MSME, employment for 3016 crore people has been generated by 6.90 crore MSMEs. This works out to an employment generation of 4.37 persons per MSME. Considering this average, employment generation is estimated to be 1.12 crore with the expected addition of 25.74 lakh new MSME beneficiaries by the end of the financial year 2027-28, the statement explained.

 

With a focus on directed credit and anticipated growth in that portfolio over the next five years, the risk-weighted assets on SIDBI’s balance sheet are expected to rise significantly. This increase will necessitate higher capital to sustain the same level of Capital to Risk-weighted Assets Ratio (CRAR). The digital and digitally-enabled collateral-free credit products being developed by SIDBI, aimed at boosting credit flow, along with the venture debt being offered to startups, will further escalate the risk-weighted assets, requiring even more capital to meet healthy CRAR, the statement said. A healthy CRAR, well above the mandated level, is a key to protect credit rating. SIDBI will benefit from an infusion of additional share capital by maintaining a healthy CRAR. This infusion of additional capital would enable SIDBI to generate resources at fair interest rates, thereby increasing the flow of credit to Micro, Small and Medium Enterprises (MSMEs) at competitive cost. The proposed equity infusion in a staggered or phased manner will enable SIDBI to maintain CRAR above 10.5 per cent under a high stress scenario and above 14.5 per cent under Pillar 1 and Pillar 2 over the next three years.