After feedback from the market, PFRDA, the pension fund regulator has sent a proposal to the finance ministry to up the pension amount ceiling under Atal Pension Yojana or APY by almost double to Rs. 10,000 per month.
In connection to it, chairman of the pension fund regulator Hemant G Contractor said "Currently, we have five slabs of pension from Rs 1,000-5000 per month. There has been a lot of feedback from the market asking for higher pension amounts because many feel that Rs 5,000 at the age of 60 years, 20-30 years from now, will not be sufficient". He added, "we have placed this proposal with the government that it should be increased to up to Rs 10,000".
The proposal is also aimed at increasing the subscriber base under the pension scheme.
To this effect, on the sidelines of the conference convened by PFRDA, Madnesh Kumar Mishra, Joint Secretary, Department of Financial Services (DFS) said "we have seen the proposal (sent by PFRDA) of increasing the pension value to (up to) Rs 10,000 per month and it is under our active examination".
At the same time, the organizations has sent two more proposals in relation to APY i.e auto-enrolment facility for the scheme and also an increase in maximum age limit to subscribe to the scheme to 50 years as against current 40 years. The current subscriber base of the scheme is nearly 1 crore individuals.
In the current FY, the entity expect enrollment of 60-70 lakh subscribers under the APY scheme.