Concerned over the poor response, the Finance Ministry has asked all state-run banks to extend the date of government contribution till March 31, 2016.
The Centre’s flagship pension plan, launched with much fanfare last year, is struggling to stay afloat. It has been able to bring only about 10 per cent of the targeted two crore under its ambit. The Atal Pension Yojana (APY), aimed at ensuring pension for those who have neither employment security nor retirement facilities, seems to have run out of steam right from the start.
Flagged off in June 2015, APY had a target to cover about 20 million people.
Recent data shows even 10 per cent of that target has not been achieved in the past eight months. Since the start of the scheme, banks have enrolled only around 1.90 million subscribers till 16 January.
This, despite the incentives the government provides for new enrolments. For those who enrolled in the scheme before 31 December, the government contributed an amount equal to 50 per cent of the subscriber’s contribution, or Rs1,000, whichever is lower.
But now, concerned over the poor response, the Finance Ministry has asked all state-run banks to extend the date of government contribution till March 31, 2016.