RBI asks co-operative banks to appoint nodal officers for Atal Pension Yojana

The Reserve Bank today asked Urban co-operative banks to appoint nodal officers for implementation of the government's flagship scheme, Atal Pension Yojana (APY), which provides for a minimum pension of Rs 1,000-5,000, depending upon contribution.

The APY, launched by Prime Minister Narendra Modi earlier this month, is focused on all citizens in the unorganised sector, who join the National Pension System (NPS), administered by the Pension Fund Regulatory and Development Authority (PFRDA).

The minimum age of joining APY is 18 years while the maximum age is 40 years.

This means that minimum period of contribution by any subscriber under APY would be 20 years or more.

The benefit of fixed minimum pension would be guaranteed by the government.

The government would also co-contribute 50% of the total contribution or Rs 1,000 per annum, whichever is lower, to each eligible subscriber account, for a period of 5 years (2015-16 to 2019-20).