Banks need to push APY subscribers toward higher pension slab keeping in mind future needs: Nagaraju

PTI

New Delhi

Flagging concerns over the high concentration of Atal Pension Yojana (APY) subscribers in the minimum slab of ₹1,000, Financial Services Secretary M Nagaraju called on financial institutions, particularly banks, to nudge individuals toward higher pension slabs as their incomes grow on Wednesday.

The flagship social security scheme has witnessed gross enrolments crossing the nine crore mark, and a record 1.35 crore new subscribers joined in FY26.

Addressing an Atal Pension Yojana Annual Felicitation Programme organised by the Pension Fund Regulatory and Development Authority (PFRDA) here, Nagaraju said, "Amid this remarkable progress, I must call your attention to the critical concern that there is an overwhelming concentration of enrolments in the ₹1,000 monthly pension slab.

While we celebrate our enrolment numbers, we must ask ourselves: would ₹1,000 per month provide adequate protection to our subscribers 20 or 30 years from now? This concentration suggests that our counselling at the point of enrolment needs more strengthening.

Our banking partners must actively guide subscribers to choose a functional mode that truly reflects their future needs and current affordability." To ensure this, he listed focus areas for banks and other financial institutions that help onboard subscribers. He said banking partners must prioritise consistency and continuity, focusing on ensuring regular contributions to turn a registered account into lifelong security.