PFRDA Chairman S Ramann announced on Wednesday that the regulator has requested the finance ministry to raise the current ceiling under the Atal Pension scheme beyond ₹5,000. According to latest reports, Ramann acknowledged that the current minimum fixed pension allowed under the APY scheme is inadequate, with the decision to propose higher ceilings based on feedback from rural population. The chairman stated that the feedback provides a significant dimension to review the scheme, suggesting potential expansion of pension benefit options beyond the current ₹5,000 monthly maximum.
According to the latest data from the Pension Fund Regulatory and Development Authority (PFRDA), 87% of Atal Pension Yojana subscribers have chosen the minimum assured sum of ₹1,000 per month, while only 8% have selected the highest slab of ₹5,000. Of over 90 million gross enrolments as of 13 May, 79.4 million chose the ₹1,000 monthly pension slab and about 7 million subscribers selected the ₹5,000 pension option. As per Rahul Singh, associate professor at O. P. Jindal Global University, this high concentration in entry-level pension slabs reflects the scheme's massive success in making secure retirement benefits affordable and accessible to low-income households. The scheme had a persistency rate of 50.1% as of 31 March, indicating that almost half the subscribers did not regularly maintain their contributions.
Any Indian citizen between 18 and 40 years old can join the Atal Pension Yojana, provided they have a savings account with a bank or post office. As reported by the scheme's official website, subscribers must make regular contributions until they turn 60 years old, with earlier joining resulting in lower contribution amounts. The application process involves visiting the bank or post office where the subscriber already has a savings account, or opening a new savings account first if necessary. The scheme is particularly designed for individuals who are non-tax payers, enabling all citizens in the unorganised sector to benefit from the government's minimum pension guarantee. Since October 1, 2022, people who are income-tax payers at the time of applying cannot open new APY accounts, even if they paid income tax only once in the past.
Contributions can be made monthly, quarterly, or half-yearly through the auto-debit facility linked to the subscriber's savings bank or post office savings account. According to the official website, the earlier subscribers join, the lower their contribution amount will generally be. The scheme offers flexibility in payment frequency to accommodate different financial situations and preferences of potential subscribers. According to M. Nagaraju, secretary in the Department of Financial Services, APY had more than ₹54,000 crore of assets under management, with a record 13.5 million subscribers added during FY26.
Under the scheme, every eligible family member between 18 and 40 years old can open their own separate APY account, though minors are not allowed to open accounts. As reported by the official website, only one APY account is permitted per individual, and holding multiple accounts is not permitted under the scheme. NRIs who meet eligibility conditions can also open APY accounts, and the scheme allows for pension benefits to extend to spouses and nominees in case of subscriber death. According to the latest data, gender-wise, males accounted for 51.43% of the subscribers and females 48.54%, with 26,192 transgender subscribers.
Age-wise data shows the highest participation from younger subscribers, with the 21–25-year category accounting for 27.6% of enrolments, followed by the 26–30-year segment with 24.1% and subscribers aged 31 to 35 at 19.15%. As per S. Ramann, chairperson of PFRDA, there has been a significant rise in enrolments among the 18-25 age group, reflecting increasing awareness among youth regarding long-term financial security. Among public sector banks, Punjab National Bank recorded the highest persistency rate at 57%, followed by Bank of Baroda and UCO Bank at 56% each. Among private sector lenders, Karur Vysya Bank topped the list with 76% persistency, followed by South Indian Bank at 75% and Federal Bank at 73%.
