In a bid to increase the scope and functioning of new entities in the banking sector, as per PTI reports, the government backed pension scheme Atal pension yojana shall now be offered by both the payments banks and the small finance banks. Currently India has as many as 11 payments banks and 10 small finance banks.

This is also to strengthen the distribution channel of APY scheme which till now rested with some of the major private and public banks and few other financial institutions. The scheme primarily caters to the unorganized worker class and is a social security benefit scheme that can be availed by an individual aged between 18-40 years.

In the pension scheme, government will make an additional contribution of 50% for each contribution made by the APY subscriber.

Paytm, Fino Payments bank, Airtel and India Post payments bank will be offering the APY scheme.

And in respect of the small finance banks, Ujjivan, Janalakshni, Equitasm AU , Capital Small, ESAF, Utkarsh, Fincare and Suryoday are allowed to offer the APY.

So, after enrolling for the scheme, unorganized work force will become eligible to receive a sum of Rs. 1000-5000 per month depending on their contribution once they attain 60 years of age.

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