Can the treatment of eligible and Covid-19 patients be covered under the Ayushman Bharat Yojana ?

The central government had included the treatment for Covid-19 in the 'Ayushman Bharat Yojana' at the beginning of the coronavirus pandemic. The 'Ayushman Bharat' is also known as 'Pradhan Mantri Jan Arogya Yojana'. Over time, while India was still fighting the first wave of the pandemic, some state governments extended the ambit of this scheme from oxygen supply to meeting the cost of essential medicines for the treatment of Covid-19.

Ayushman Bharat is the flagship health insurance scheme by the central government for poor people.

Under the Ayushman Bharat Yojana, 10 crore poor families, deprived and weaker sections of the country get health insurance. Under this scheme, these families i.e., 50 crore people get health insurance of up to Rs 5 lakh per year. However, to benefit from the scheme, you must have certain qualifications. They are the following:

In rural areas, the Ayushman Bharat Yojana scheme can be availed only by people who have a kuccha house, no adult (16-59 years) in the family, woman as the head of the family, a disabled person in the family, the family is from SC/ST, landless, daily wage labourer, homeless, tribals and destitute.

In urban areas, beggars, garbage pickers, maids who earn through household chores, street vendors, hawkers, plumbers, masons, labourers, painters, welders, security guards, porters, sweepers, drivers, rickshaw pullers or persons who work in a shop can avail the Ayushman Bharat scheme.

According to a March 2020 circular, the treatment and testing of Covid-19 will be done for free of cost in any of the private hospitals empanelled for the scheme.

Private hospitals, too, have been empanelled under this scheme along with government hospitals. Under this insurance scheme, treatment of almost all types of diseases such as cancer surgery, radiation therapy, chemotherapy, cardiac surgery, neuro (brain) surgery, spine surgery, dental surgery, eye surgery and special tests such as MRI and CT scans are covered.

Infections such as a common cold and fever are not included in the Ayushman Bharat scheme. Now that the Covid-19 infection symptoms are like those of a common cold, can Covid-19 be treated under the scheme?

Symptoms of Covid-19 include a cold, cough or fever which are detected through the RT-PCR tests. However, to make use of the benefits of the Ayushman Bharat scheme, a person has to be admitted to a hospital for at least one day. So if you are positive for Covid-19 and have been admitted to a hospital, you can still take benefits of the scheme. But are you eligible to apply for the scheme?

The eligibility criteria for the Ayushman Bharat Yojana can be checked online at www.pmjay.gov.in or by calling 14555 and 1800111565 helpline numbers.

If you are eligible, then you will get treatment for Covid-19 at the private hospitals associated with Ayushman Bharat Yojana. Quarantine at a private hospital will also be covered under this insurance.

While the poor can get free treatment at the government hospitals, the aim of the scheme was also to add private hospitals under it. You can find which hospital near you is connected with Ayushman Bharat Yojana by checking online or calling the helpline numbers.

After you know your eligibility and the hospital associated with the Ayushman Bharat Yojana, you will be helped by an "Ayushman Mitra or Arogya Mitra" in that hospital. "Ayushman Mitra or Arogya Mitra" will help you with admission to the hospital.

To get benefits under the Ayushman Bharat Yojana, the eligible person has to show his/her eligibility by an e-card. S/he has to show some documents such as an Aadhaar card, a Voter ID card or ration card.

https://www.indiatoday.in/coronavirus-outbreak/story/tested-positive-covid19-heres-how-you-can-benefit-from-ayushman-bharat-yojana-for-treatment-1800255-2021-05-08

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10 facts about PM-Jan Arogya Yojana or PM-JAY, a key part of Ayushman Bharat Yojna

Ayushman Bharat Diwas is observed on April 30. Ayushman Bharat Yojna was launched by Prime Minister Narendra Modi in 2018, to provide healthcare benefits to crores of Indians who can't afford proper medical facilities. The flagship scheme of the Narendra Modi government was launched along the lines of a universal health coverage to meet one of the Sustainable Development Goals (SDGs) of the United Nations - "leave no one behind." According to Health Minister, Dr Harsh Vardhan, India has operationalised 75,532 Ayushman Bharat-Health and Wellness Centres (HCW) so far despite the COVID-19 pandemic and is on track to functionalise 1.5 lakh HWCs by December 2022.

Ayushman Bharat Diwas: 10 facts about PM-Jan Arogya Yojana (PM-JAY)

1.     The Pradhan Mantri Jan Arogya Yojna or PM-JAY is a key component of Ayushman Bharat Yojna
2.     PM-JAY was launched on 23rd September, 2018 in Ranchi by Prime Minister Narendra Modi
3.     Ayushman Bharat PM-JAY is the largest health scheme in the world
4.     Ayushman Bharat PM-JAY aims to provide a health cover of ₹ 5 lakh per family per year to over 10.74 crore poor and vulnerable families
5.     PM-JAY beneficiaries are from the bottom 40 per cent of the Indian population  
6.     PM-JAY is fully funded by the central government and the cost of implementation is shared between the centre and states
7.     PM-JAY provides cashless hospitalization
8.     It covers up to three days of pre-hospitalization and 15 days post-hospitalization expenses like tests and medicines
9.     PM-JAY benefits are portable across the country, that is, a person can visit any empanelled public or private healthcare facility in India for cashless hospitalization.
10.     All pre-existing conditions are covered from day one and services include around 1,393 procedures

 

https://www.ndtv.com/india-news/ayushman-bharat-diwas-2021-10-things-to-know-about-pm-jan-arogya-yojana-pm-jay-2424821

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Atal Pension Yojana( APY) Subscriber Information for Indians

APY offers choice of minimum monthly pension guaranteed by Govt. of India of Rs. 1000, Rs 2000, Rs 3000, Rs 4000 and Rs. 5000 per month after 60 years of age.

Subscriber’s Age should be between 18 -40 yearsfor joining APY.

Subscribercan join APY through a bank branch/post-office.It is mandatory to provide nomination and spouse details in APY account.

Contributionscan be made on Monthly or Quarterly or Half yearly basisthrough auto debit facility from savings Bank account.

Transaction statementand PRAN Cardcan be viewed and printedanytime, from anywhere and free of cost by visiting www.npscra.nsdl.co.in>> Home>>Atal pension Yojana>> APY e-PRAN/Transaction statement view.

Subscriber can request for issuance of Physical PRAN card after paying the requisite sum at the website-https://enps.nsdl.com/eNPS/APYRePrintPRAN.html>>Atal Pension Yojana>>Print APY PRAN Card, After enrolling into Atal Pension Yojana, Physical transaction statement will be sent once in a year to the registered addressi.e. the address provided by a subscriber after enrolling for Atal Pension Yojana.Contribution Under APY.

All the queries regarding APY account / contribution shouldbe made to the APY-SP branchonly. Information about the status of contributions will be communicatedby CRA-NSDLthrough periodic SMS alertson registered mobile numberof the subscriber. Modification of Subscriber Details under APY, Subscriber  will  have  to makeawritten  request which is  to  be  submitted  to  the  APY-SP  branchalong  with  the  required  documents for modificationof  personal information like address, phone number, etc.

Switching facility is available once in a year during the month of April for which a “Form to upgrade/downgrade pension amount under APY” available at https://www.npscra.nsdl.co.in/>>Home>>Atal  Pension  Yojana>>Forms>>Maintenance>>  Forms  to  upgrade/downgrade  pension  amount  under  APY,is  to  be submitted to APY-SP branch.

To upgradethe pension amount means toincreasethepension amountof a subscriberand to downgrade the pension amount means todecrease thepension amountof a subscriber.

Change in frequencyof contributione.g. from quarterly contribution to monthly contribution or from half yearly contribution to quarterly contribution etc. may be done after submission of written request by the APY subscriber to the APY-SP branch.Exit from APY

Pre-matureexit(Exit before 60 Years of age):For closure of APY accounts a duly filled “Account Closure Form (Voluntary Exit) form” and other relevant documents is  to  be  submitted  to  the  concerned  APY-SP  branch.

The  form  is  available  at: www.npscra.nsdl.co.in>>Home>>AtalPension  Yojana>>Forms>>Withdrawal Form>>Voluntary exit APY withdrawal form. It will also be available at APY-SP branch as well.Subscriber should not close the savings bank account linked with APY account even though the APY account gets closed because the closure proceeds which the subscriber will receive on the pre-mature exit is transferred into the APY linked savings bank account and closure of this account may create problem in transfer of closure proceeds.

Exit due to Death:The claimant may submit the duly filled “APY Closure Form (Death)” along withacopy of the death certificate to the concerned APY-SP branch. The  form  is  available  at: www.npscra.nsdl.co.in>>Home>>AtalPension  Yojana>>Forms>>Withdrawal  Form>>APY  death  form.  It  will  also  be  available  at  APY-SP Branch as well.

On death of the APY account subscriber, the monthly guaranteed pension shall be payable to the spouseof the subscriberand in the absence or subsequent death of the spouse, thepension corpusas per the pension plan subscribedshall be payable to the nominee of the subscriber.The nominee has to be someone else other than the spouse of the subscriber.

On death of the subscriberbefore 60 years, spouse has the option to continue thecontribution in theAPY account of subscriber, which can be maintained in the spouse’s name,for the remaining vesting time, till the time original subscriber would have attained 60 years of age.APY Mobile Application.

APY mobile applicationis  available  for  APY  usersfree  of  cost, where,recent  5  contributions  can  be  checked  and  transaction  statement  and  e-PRAN  canalsobe downloadedanytime without paying any charge. Android users can download APY mobile application from Google play store by typing ‘APY and NPS Lite’ in search option.Raising Grievance Under APY.

Subscriber can anytimeraise grievancefree of cost and from anywhere byvisiting:www.npscra.nsdl.co.in>>Home >> select: NPS-Lite

Subscriberraising the grievance willbe allotted atoken numberagainst the grievance raised. Subscribermay check the status of the grievance under “Check the status of Grievance / Enquiry already registered”

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PFRDA relaxes NPS exit rules on medical expenses

The Pension Fund Regulatory and Development Authority (PFRDA) has relaxed the exit rules under National Pension System (NPS) on medical grounds for the government employees, subscribers under All Citizen model, corporate model, NPS-Lite and Swavalamban subscribers.

The exit under the NPS is governed by the rules as per the Pension Fund Regulatory and Development Authority (Exits and Withdrawals under the National Pension System) Regulations, 2015, which is amended from time to time.

PFRDA has issued a gazette notification relaxing exit guidelines on medical ground, called the Pension Fund Regulatory and Development Authority (Exits and Withdrawals under the National Pension System) (Third Amendment) Regulations, 2018.

Government sector subscribers
The exit from NPS for government sector subscribers will be allowed if the employer certifies that the subscriber has been discharged from the services of the concerned office on ..account of invalidation or disability.

Citizens, including corporate sector subscribers

The exit from NPS by citizens, including corporate sector subscribers will be allowed if the subscriber is physically incapacitated or has suffered a bodily disability leading to his incapability to continue with his individual pension account under National Pension System.

In such cases, the exit is allowed subject to the subscriber submitting a disability certificate from a Government surgeon or Doctor (treating such disability or invalidation of subscriber) stating the nature and extent of disability and also certifying that:

a) The subscriber shall not be in a position to perform his regular duties and there is a real possibility of the affected subscriber, being not able to work for the remaining period of his life.; and

b) Percentage of disability is more than seventy five percent in the opinion of such Government surgeon or doctor (treating such disability or invalidation of subscriber)

NPS-Lite and Swavalamban subscribers

The exit from National Pension System by NPS-Lite and Swavalamban subscribers is allowed provided that a subscriber who is physically incapacitated or has suffered a bodily disability leading to his incapability to continue with his individual pension account under National Pension System.

The exit in such cases shall be subject to the subscriber submitting a disability certificate from a Government surgeon or doctor (treating such disability or invalidation of subscriber) stating the nature and extent of disability and also certifying that:

a) The subscriber shall not be in a position to perform his regular duties and there is a real possibility of the affected subscriber, being not able to work for the remaining period of his life.; and

b) Percentage of disability is more than seventy-five percent in the opinion of such Government surgeon or doctor (treating such disability or invalidation of subscriber).

Partial withdrawals

Further, a subscriber is already permitted to withdraw not more than 25 percent of one's own contribution after being a subscriber for at least ten years in NPS for specific needs such as higher education, home purchase, marriage or critical illness needs. The new rule allows such partial withdrawals to meet medical and incidental expenses arising out of the disability or incapacitation suffered by the subscriber. In case of disability, one can partially withdraw even without exiting.

//economictimes.indiatimes.com/articleshow/62792368.cms?utm_source=contentofinterest&utm_medium=text&utm_campaign=cppst

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Atal Pension Yojana: Regulator Eyes 70 Lakh New Subscribers in India

NEW DELHI: Pension regulator PFRDA is hopeful of enrolling at least 60-70 lakh new subscribers this fiscal to its Atal Pension Yojana (APY), a micro pension product primarily targeted at the unorganised sector. Since the launch of APY in July last year,  the number of subscribers for this product has touched 20 lakhs.

After more than three-hour long discussion with officers of public sector banks, post offices and micro finance, Hemant Contractor, Chairman of PFRDA said, “We are confident of doing much better this year as nearly 1,47,000 offices would distribute APY this year.”

The major concern the that was being raised by banks, post offices and micro finance institutions were the product requires lot of awareness among people and stressed the need for training of officers as well.   

Contractor’s optimism also came from the likely push that postal department for this product this fiscal. “About 20,000 post offices that are already networked under an IT platform (CBS) will start distributing APY. This will be big boost for APY,” Contractor said.

India Post had started APY distribution only from December last year. As on date, only about 1,000 post offices are offering APY, he said. Contractor said that 2015-16 saw huge response from individual subscribers with a record 1.3 lakh new subscribers opting for this products. This was more than the aggregate level recorded for the previous four years.

“The additional tax break of Rs 50,000 has been a real kicker. It has boosted interest in NPS,” the regulator  added.

http://www.newindianexpress.com/business/news/Atal-Pension-Yojana-Regulator-Eyes-70-Lakh-New-Subscribers/2016/04/13/article3377821.ece

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Atal Pension Yojana eligible for tax benefits as National Pension System

Contributions to the Atal Pension Yojana (APY) will now be eligible for the same tax benefits as the National Pension System (NPS), according to a circular released by the Income Tax department on Tuesday. The tax benefits include the additional deduction of Rs 50,000 under section 80CCD(1) introduced in last year's budget.

The APY is open to Indians aged between 18 and 40 years and has a minimum tenure of 20 years. Nearly 20 lakh subscribers have joined the scheme since its launch in June 2015. The APY replaced the NPS Lite or Swavalamban scheme, which got about 45 lakh subscribers in the past six years.

The biggest draw of the APY is that the government will contribute 50% of the contribution made by the investor for a period of five years. But this benefit will only go to subscribers who put in less than Rs 1,000 a year and those who join the scheme before 31 March 2016. Those with taxable income are also not eligible.

Most subscribers to the APY are small-ticket investors. Its AUM of Rs 328 crore is spread across 19.77 lakh accounts, so the average balance per account is only Rs 1,640. In comparison, the NPS Lite, which benefited from the market rally since 2010, has about Rs 1,982 crore lying in 44.63 lakh accounts, an average of Rs 4,440 per account.

http://economictimes.indiatimes.com/wealth/invest/atal-pension-yojana-eligible-for-same-tax-benefits-as-national-pension-system/articleshow/51108260.cms

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The finance ministry is examining a proposal by the PFRDA to exempt NPS withdrawals from payment of tax

The finance ministry is examining a proposal by the Pension Fund Regulatory and Development Authority (PFRDA) to exempt national pension system (NPS) withdrawals from payment of tax, so as to bring it on par with the employee provident fund (EPF) scheme.

This will provide a level-playing field for the two pension schemes.

"We have made a proposal to the finance minister ahead of the Budget, where exemption of NPS withdrawals from tax is one of the key recommendations. It will be a game-changer for NPS resulting in a substantial increase in the assets under management with more private subscribers coming on board," said a PFRDA official.

The Seventh Pay Commission had also recommended an exempt-exempt-exempt (EEE) status for NPS, to bring it on a par with the EPF scheme in terms of tax-free withdrawals.

The pay panel also pitched for extension of co-contribution incentive by the government beyond 31 December to attract subscribers under Atal Pension Yojana

The government has so far got over one million subscribers on board

Currently, the EPF withdrawals after five years of completion of service are tax-exempt, while premature withdrawals before five years attracts tax ranging between 10 per cent and 34.608 per cent, barring exceptions.

The EPF enjoys 'EEE' status, while NPS accounts have exempt-exempt-taxed status, where any contributions to the schemes and its earnings are not taxed but amount received on withdrawal is taxed.

"There is indeed a case to provide EEE status to NPS, but the matter is still under examination," said a government official.

The finance minister had in his last budget provided employees the option of choosing between EPS and NPS, and a cabinet note for amendment of EPF and MP Act, 1952, has been sent to the law ministry for vetting.

Also, while the Employees' Provident Fund Organisation has been giving a return of 8.25-9.5 per cent to its subscribers, NPS has given a return of 9.2 per cent and NPS Lite has given a compounded annual growth return of 9.68 per cent.

Of the over Rs1,00,000 crore assets under management of NPS, 90 per cent falls under the central and state government schemes.

Meanwhile, the APY scheme got over one million subscribers on board by December. APY guarantees subscribers a monthly pension of Rs1,000, Rs2,000, Rs3,000, Rs4,000, or Rs5,000 in return for the contribution varying from Rs42 to Rs210 per month.

Under the scheme, the government contributes 50 per cent of the subscriber's contribution or Rs1,000 per annum, whichever is lower, to each eligible subscriber account for five years to 2019-20, who joined the NPS before 31 December 2015 and who are not income taxpayers.

Currently, eight pension fund managers manage private-sector funds and only three run by state-owned financial institutions are allowed to manage central and state government funds.

SBI Pension Funds, UTI Retirement Solutions, and LIC Pension Fund manage the government corpus. They also manage the private-sector corpus along with ICICI Prudential Pension Fund Management, Kotak Mahindra Pension Fund, HDFC Pension Management, Reliance Capital Pension Fund and the pension fund incorporated by Birla Sun Life Insurance.

http://www.domain-b.com/finance/general/20160108_exemption.html

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NPS to submit applications online for settlement of withdrawal claims from April 1: PFRDA

Pension fund regulator PFRDA has made it mandatory for the subscribers of New Pension System (NPS) to submit applications online for settlement of withdrawal claims from April 1 next year.

According to a PFRDA directive, no request in physical form would be entertained with effect from April 1, 2016.

"It has...Been decided that with effect from April 1, 2016 only such withdrawal requests raised on online platform will be accepted at CRA (Central Recordkeeping Agency) system for further processing.

"Physical withdrawal request forms received at CRA will not be accepted for further processing," the Pension Fund Regulatory and Development Authority said.

NSDL is the CRA for the NPS. A subscriber can exit NPS due to superannuation, premature exit and death.

PFRDA said it is committed to support the 'Digital India' campaign of the government and efforts were being made to make various NPS related services available on online platform.

Making withdrawal process online wherein subscribers can raise withdrawal request using online platform is one of the such initiatives, it said.

"This will make withdrawal process paperless to a great extent and seamless and exit claims of the subscribers can be settled in least possible time," it said.

NPS has been implemented for all government employees (except armed forces) joining Central Government on or after January 1, 2004.

Most of the State/UT Governments have also notified the NPS for their new employees. NPS has been made available to every Indian Citizen from May 2009 on a voluntary basis.

Further, from June 2015, the Atal Pension Yojana (APY), has been launched which has given the much required impetus to the social security schemes.

NPS and APY together have more than one crore subscribers with total Asset Under Management of more than Rs 1 lakh crore.

Meanwhile the retirement fund body EPFO is also in the process of providing facility of filing PF withdrawal claims online with an ultimate aim to process such applications with 24 hours of receiving it.

http://www.business-standard.com/article/pti-stories/apply-online-for-nps-withdrawals-from-april-next-pfrda-115112200197_1.html

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New crop insurance Fasal Bima Yojana a boost for farmers : PM

Prime Minister Narendra Modi hailed the Pradhan Mantri Fasal Bima Yojana, which was cleared by the Union Cabinet today, as a boost to the farmers across the country.

In a series of tweets, Mr Modi said it was government’s gift to the farmers on the occasion of festivals of Lohri, Pongal and Bihu.
He expressed confidence that the new Crop Insurance Scheme will bring about a major transformation in the lives of farmers, saying it expands the definition of disaster and addresses whatever was lacking in the existing programmes.

“Farmer brothers and sisters, at a time when you are celebrating festivals like Lohri, Pongal and Bihu, the government has given you a gift in the form of Prime Minister’s Crop Insurance Scheme,” he tweeted hours after the Cabinet cleared the proposal.

“This is a historic day. I am confident that this scheme, which is inspired by the consideration of farmers’ benefit, will bring about a major transformation to the lives of farmers,” Modi added.
In a series of tweets, the Prime Minister said the scheme includes successful aspects of the existing schemes and “effectively addresses” whatever was lacking in those schemes.

“The scheme has the lowest premium, it entails easy usage of technology like mobile phone, quick assessment of damage and disbursement within a timeframe,” he said.

The definition of disaster has been expanded to include aspects like flooding of crop and damage after harvest, Modi said, adding that “special attention” has been paid to several other aspects.
“It is easy to subscribe to the scheme and easy to benefit. So, do join it,” he told the farmers,

In order to provide relief to drought-hit farmers, the government today announced a new Rs 8,800 crore crop insurance scheme, with significantly lower premium, to cover for loss of crop to natural calamities.

Farmers will pay only 2 per cent of the premium fixed by insurance company for kharif foodgrains/oilseeds crops and 1.5 per cent for rabi foodgrains/oilseeds crops under thePradhan Mantri Fasal Bima Yojana.

http://www.centralchronicle.com/pradhan-mantri-fasal-bima-yojana-a-boost-for-farmers-pm.html

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The new e-NPS facility PFRDA has launched e-NPS pensions

New Delhi: You can now opt for the National Pension System (NPS) from the comfort of your home.

Pension regulator PFRDA has launched e-NPS, a convenient online based subscriber registration and contribution facility for NPS.

The new e-NPS facility is a Permanent Account Number (PAN) (income tax) based initiative that has recently gone live, Hemant Contractor, PFRDA Chairman told Business Line.

He also said that PFRDA has abandoned the earlier proposal of introducing Aadhar-based e-NPS facility.

"The initiative we have now launched is only IT-PAN based one. Any person with an IT PAN card and a bank account could subscribe for NPS online. We will validate the PAN details online with the income tax department".

Banks will provide online verification of know-your-customer (KYC) for the customers of their banks willing to open NPS account online.

As on date, ten banks –Allahabad Bank, Bank of India, Bank of Maharashtra, Oriental Bank of Commerce, South Indian Bank, State Bank of Travancore, State Bank of Hyderabad, State Bank of Patiala, TamilNadu Mercantile Bank and United Bank of India have provided the facility of online KYC verification.

PFRDA has advised all other bank point of presence (POP) to join the e-NPS platform and provide online verification of KYC.

The launch of e-NPS would also mean subscribers need not visit any point of presence and could register from anywhere through an internet connection.

http://www.thehindubusinessline.com/money-and-banking/pension-regulator-pfrda-launches-enps/article8077847.ece

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District lags much behind in Atal Pension Scheme

The Pradhan Mantri Atal Pension Scheme has received only 1,279 applications so far mainly because of the apathy of the implementing agencies and scheme's failure to convince the potential beneficiaries. Though the installment is very low, very few people have participated in it.

As per the figures shared by the district lead bank, Bank of India, 608 applications from rural areas have received for the scheme while 671 from urban areas. Out of 1,279 as many as 1,261 bank accounts attached for the scheme are from public sector banks.

Compared to the pension scheme, there are more applicants for Prime Minister Suraksha Bima Yojana and Prime Minister Jivan Jyoti Bima Yojana in the district. Both the schemes have received 1,45,474 and 1,48,063 applications so far.

M G Kulkarni, general manager of lead district bank, Bank of India said, "It is challenge for us to convince the people about importance of the pension scheme. People are aware of the pension schemes up to some extent but still there is little response from the people for it. We are working out some plans to increase its reach-out."

Sources close to the development said that the planning of the scheme has some problems. The maximum pension offered in the scheme is Rs 5,000 per month. Even if someone is in his or her 30s and pay higher amount as installment to get Rs 5,000 per month pension; nobody is sure that after 20 years what value Rs 5,000 will have in the market. Unfortunately, no senior government official comes out and addresses this basic and pin-pointed question about the pension scheme, said the official on the condition of anonymity.

Sujit Minchekar, Shiv Sena MLA from Kolhapur district said that the government officials need to take extra efforts so that some people can participate in the scheme. Getting some pension after turning 60 is necessary and some people will benefit for sure. But there has to be more efforts than regular ways of issuing media releases and distributing leaflets. The real beneficiaries of the scheme are people from unorganized sectors working in urban areas as well as some small scale industries, he said.

http://timesofindia.indiatimes.com/city/kolhapur/District-lags-much-behind-in-Atal-Pension-Scheme/articleshow/48832120.cms

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Banks to calculate, disburse 6 % dearness relief to pensioners

New Delhi, All pension disbursing authorities including nationalised banks have been asked to calculate the quantum of dearness relief payable to pensioners, after the recent six per cent increase in it by the government.

The move comes following a decision by the Union Cabinet early this month regarding six per cent hike (from existing 113 to 119 per cent) in dearness allowance (DA) to central government employees and dearness relief (DR) to pensioners with effect from July 1, 2015.  With the increase, central government employees and pensioners will get 119 per cent of DA and DR, respectively.

"It will be the responsibility of the pension disbursing authorities, including the nationalised banks, etc.
to calculate the quantum of DR payable in each individual case," an order issued today by the Ministry of Personnel, Public Grievances and Pensions said.

In the case of retired Judges of the Supreme Court and High Courts, necessary orders will be issued by the Department of Justice separately, it said.

The offices of Accountant General and authorised pension disbursing banks are requested to arrange payment of relief to pensioners etc.

Without waiting for any further instructions from the Comptroller and Auditor General of India and the Reserve Bank of India, the order said.

There are about 50 lakh central government employees and 56 lakh pensioners.

http://news.niticentral.com/2015/09/28/banks-to-calculate-disburse-6-dearness-relief-to-pensioners/

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APY the subscriber may actually be getting a sub optimal return

In the recent budget, the Finance Minister announced the Atal Pension Yojana, which promises a fixed pension of at least Rs.1,000 at age 60 if subscribers contribute pre-defined amounts over their working life. The APY suffers from five problems.

1. Clarity of objective

The NPS-Swavalamban (NPS-S) has been the flagship pension scheme for the informal sector since 2010. While it has taken root over the last few years, problems in the design and process of the scheme persist. The APY seems to be motivated by these concerns. The scheme document says: `… coverage under Swavalamban Scheme is inadequate mainly due to lack of clarity of pension benefits at the age after 60. The Finance Minister has, therefore, announced a new initiative called Atal Pension Yojana (APY) in his Budget Speech for 2015-16′. Clarity of pension benefits could be interpreted as clarity of process for receipt of benefits, or certainty about the amount of benefit. The exact interpretation has not been made clear. It seems that the intent of the government is to migrate the entire existing NPS-S to the APY [See Page 7 of the APY FAQs]. It is not clear that this is the right approach. A careful examination of the lessons obtained from NPS-S over the last four years (e.g. Sane and Thomas, 2015) would have helped design a better response. Perhaps there was a role for co-contribution separately from the pension guarantee.

2. Design of the procedure

There is considerable confusion on how the APY is actually going to work. Initially, the APY was to be sold through the same aggregators that distribute the (NPS-S). New documentation indicates that it is actually only open to bank account holders. All the existing NPS-S customers are to be migrated to the APY with an option to opt-out. Does this place the responsibility of opening bank accounts for NPS-S customers on the aggregators? What happens to those who wish to continue with the NPS-Lite i.e. use the NPS without the co-contributions? In that case, the PFRDA ought to define well-defined standards of skill and care that aggregators will be expected to exercise towards a customer as invariably the aggregator will end up playing the role of an advisor when making a decision on whether to opt-out of the APY, or continue only the APY or continue the APY along with NPS-Lite.

The scheme levies penalties on those who are not able to maintain the required balance in the savings bank account for contribution on the specified date and close bank accounts if contributions are not paid for 24 months. However, we know from the NPS-S experience that informal sector workers often do not have liquidity, are not able to contribute on time, but do come back over subsequent periods. This design of the APY will invariably exclude those who cannot maintain a balance in their savings bank accounts or make regular contributions, defeating the purpose of providing a formal sector savings mechanism.

3. Price of the guarantee

Apparently innocent guarantees can prove to be disastrously costly when viewed in their entirety (e.g. Shah, 2003). The APY seems to be motivated by the desire of the government to ensure that on contributing continuously, a member gets at least a pension of Rs.1,000. While not explicitly specified, the APY seems like a minimum return guarantee which will ensure that accumulated savings at retirement do not fall below a certain value. There are different kinds of guarantees, and several ways to design minimum return guarantees. For example, an absolute rate of return guarantee promises a pre-specified rate of return, while a relative rate of return guarantee promises a return close to the average of all funds. The motivation for the choice of this particular design, and the calculations that influenced the choice have not been articulated. Under the APY the subscriber may actually be getting a sub optimal return. This is not surprising, as all guarantees come at a cost (Pennacchi, 1999). However, policy makers need to show the application of mind: the class of guarantees which was evaluated, and the logic that led up to this choice. The contributions under APY are to be invested as per the investment guidelines prescribed by Ministry of Finance, Government of India. The investment guidelines, and how they would finance the guarantee of the APY are not yet clear.

4. Safeguards against arbitrary increases

Almost all pension guarantees in the world have turned into fiscal problems. Even if a guarantee is fiscally sound at the outset, modifications to the program design later on render it bankrupt. Governments are tempted to increase benefits prior to an election. Apparently innocuous changes are announced, which add up to many percentage points of GDP. Any guarantee program requires an elaborate array of safeguards to protect against reckless actions in the future. The APY features no safeguards. It does not require governments to show actuarial calculations before any changes to the design are introduced. An example of a defined benefit guaranteed return plan running into funding difficulties is the Employees Pension Scheme (EPS). Estimates suggest that the EPS is facing a shortfall of Rs.54,000 crore, and several changes in scheme design have now been put in place owing to these funding difficulties.

5. Improper process

Indian finance has taken a big step forward by committing to the Handbook on adoption of governance enhancing and non-legislative elements of the draft Indian Financial Code. The procedural requirements in the Handbook, for framing regulations include a statement of objectives and a cost benefit analysis of each of the provisions. Many of the mistakes of the APY could have been avoided by the use of this process. It is not too late to apply this process to APY, even now.

http://www.marketexpress.in/2015/05/concerns-about-atal-pension-yojana.html

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India’s retired military men keep interest rates higher in Asia’s third-largest economy?

Will a new multi-billion dollar bill to take care of India’s retired military men keep interest rates higher in Asia’s third-largest economy?

Since New Delhi agreed over the weekend to demands from members of the military for a more generous pension scheme, analysts have aired doubts about the ability of the government to stick to its fiscal plans.

Any concern that the government is unable to stick to its fiscal targets could delay a lowering of interest rates and even a stronger economic recovery, analysts say, because it could convince Reserve Bank of India Governor Raghuram Rajan to put off any further easing.

Mr. Rajan is keeping New Delhi on a tight leash: he has said time and again that a healthy budget is a pre-condition to a more accommodative policy.

The government has in principle accepted what India has been calling the “One Rank One Pension” plan, a demand by defense personnel that the same pension should be paid to armed force retirees with the same rank and the same length of service, regardless of the year they retired.

The move is likely to add significantly on the fiscal bill: economists at HSBC estimate it will cost the country 160 billion rupees, or around $2.5 billion, in the year ending next March alone.

Unfortunately that’s not the only unexpected cost in the country’s books this year. Last month, the finance ministry announced it would be spending 170 billion rupees to recapitalize capital-starved public sector banks. Meanwhile the recent stock market weakness in India and around the world has made it unlikely India will be able to raise the revenues it had planned to pocket by selling stakes in government companies. That could leave another 340 billion rupee shortfall, HSBC estimates.

“All of this means that the path of fiscal consolidation has become harder,” HSBC chief India economist Pranjul Bhandari said in a note Monday.

Some positive factors – including a fall in India’s fuel and fertilizer subsidy bill on the back of falling commodity prices, expenditure reductions and a higher-than-expected dividend from the central bank – will help relieve the pressure for now. But the outlook for next year is less encouraging, economists warn.

India should be able to meet its target of keeping its fiscal deficit at 3.9% of gross domestic product this fiscal year. However if it wants to continue lowering that deficit as planned to 3.5% next year and 3.0% the year, India will need to cut costs and find new sources of revenues, said Nomura in a report Monday.

“Continued fiscal consolidation beyond FY16 will require structurally addressing both the expenditure (deregulating the remaining fuel and fertilizer prices) and revenue side (broaden the tax base) of the fiscal balance,” Nomura said.

Mr. Rajan will be watching closely.  He cut rates three times since the start of the year to the current level of 7.25%, the lowest level India has seen since May 2013.

In a recent interview with the Wall Street Journal he said that the RBI is still in “accommodative mode,” but he quickly added that the bank’s policy will be driven by upcoming news.

“We’re looking at the data to see what more room we have,” he said.


http://blogs.wsj.com/indiarealtime/2015/09/07/will-indias-new-military-pension-bill-derail-its-deficit-plans/

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APY Subscribers can make half-yearly, quarterly payments

To increase the subscription of the Atal Pension Yojana (APY) among informal sector workers and make the scheme more viable, the government has modified the flagship programme to give subscribers an option to make contributions on a monthly, quarterly or half-yearly basis, instead of only on a monthly basis earlier.

Also, the provision related to the discontinuation of payment of contribution has been substantially modified in favour of the subscriber, the finance ministry said in a statement on Thursday.

“The account will not be deactivated and closed till the account balance with self-contributions, minus the government co-contributions, becomes zero due to the deduction of account maintenance charges and fees,” it said.
Besides, the penalty on delayed payment has been simplified to just R1 per month for contribution of Rs 100, or part thereof, for each delayed monthly payment instead of different slabs given earlier.

Similarly, a premature exit from the scheme before 60 years of age was not permitted earlier except in exceptional circumstances, — in the event of the death of the beneficiary or terminal disease. Now the modified provision permits the subscriber to voluntarily exit with the condition that he shall only be refunded the contributions made by him to APY, along with the net actual interest earned on his contributions (after deducting the account maintenance charges).

The other condition enabling voluntary exit is that the government co-contribution, and the interest earned on the government co-contribution, shall not be returned to such subscribers.

The APY was launched by Prime Minister Narendra Modi on May 9.

http://www.financialexpress.com/article/industry/companies/apy-subscribers-can-make-half-yearly-quarterly-payments/122968/

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Pensions regulator PFRDA asks banks to process APY contributions quickly

Pensions regulator PFRDA has flayed banks for not adhering to timelines for processing contributions to recently launched Atal pension yojana (APY), which is among the key social security schemes launched by prime minister Narendra Modi in May.

The regulator has a daunting task of getting two crore subscribers for Atal pension yojana by this year end and as of now it has about five lakh subscribers enrolled. And tardy processing of contributions isn’t helping its cause much either. Pension Fund Regulatory and Development Authority (PFRDA) administers the scheme and the institutional architecture of NPS is being utilised to enroll subscribers under Atal pension yojana.

In June 2015, there were several instances where subscriber contributions were delayed. PFRDA has warned that any overdue interest or subscriber compensation due to delay in processing may have to be borne by the concerned bank.

Under the schemes’ rules, banks are required to collect additional amount for delayed payments, such amount will vary from minimum Rs. 1 per month to Rs 10 per month.

Banks get an incentive for mobilising new accounts under Atal pension yojana and for promotion and development of the scheme as well. Under this particular scheme, a minimum pension amount is guaranteed by the government on the premise that certain parametres are met as per the guidelines. This is why timely remittance of funds and investment are crucial.

“It was observed that during June 2015, there were several instances where these timelines were not adhered by the banks. It may be noted that the delayed upload of contribution had also an adverse impact by way of overdue interest or increased monthly contribution for the subscribers due to change of age during the period of delay,” PFRDA said.

For example, a guaranteed Rs 5,000 monthly pension for a 35-year-old will require monthly investment of Rs 902. However, if the subscriber turns 36 during the period of delay, he/she will have to pay Rs 990 per month. PFRDA directed all the banks to adopt measures that will "streamline the process of contribution upload as per timelines."

Banks are required to generate the Permanent Retirement Account Number (PRAN) immediately after submission of applications and the subscribers are to be provided with acknowledgment slip indicating the pension amount opted and PRAN.

PFRDA directed banks to upload files containing subscriber’s data and remittance of funds collected on the second day of PRAN generation. By the fourth day, contributions should be matched and booked and units need to be allotted.

http://www.mydigitalfc.com/news/pfrda-asks-banks-process-apy-contributions-quickly-554

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In July India's pension fund to start equity investments

NEW DELHI: Starting in July, India's state-run pension and social security fund will invest about $800 million in equities in the current fiscal year, labour minister Bandaru Dattatreya said, in a long-awaited move that may help finance an ambitious privatization programme.

The more than $100 billion Employees' Provident Fund Organisation (EPFO) intends to place an initial 1 per cent of its investments in exchange traded funds, increasing to 5 per cent of the annual total in equity products by March 31.

http://timesofindia.indiatimes.com/business/india-business/Indias-pension-fund-to-start-equity-investments-in-July/articleshow/47811959.cms

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PFRDA asked subscribers of NPS Swavalamban scheme to join the Atal pension yojana (APY)

Pension fund regulator PFRDA has asked subscribers of NPS Swavalamban scheme to join the Atal pension yojana (APY), which offers guaranteed minimum monthly pension of Rs 1,000-5,000 to the subscriber after 60 years.

NPS Swabhalamban scheme has significant amount of subscribers and if all them opt for newly launched Atal pension yojana, it will help PFRDA reach the 2-crore subscriber target for this year. NPS Lite and Swavalamban schemes combined have about 45 lakh subscribers with assets under management of over Rs 1,700 crore.

Both Swavalamban and APY schemes are quite similar in certain aspects. The NPS-Swavalamban model is designed to ensure ultra-low administrative and transactional costs, so as to make small investments viable.

Like the recently-launched Atal pension yojana, in Swavalamban also government contributes Rs 1000 per year to each account for five years. A Swavalamban account opened in the period 2013-2014 to 2016-2017 for example get the Swavalamban benefit up to 2016-17.

In the APY, the government would co-contribute 50 per cent of the total contribution or Rs 1000 per annum, whichever is lower, to eligible subscribers. Government co-contribution is available for five years, i.e. from 2015-16 to 2019-20 for the subscribers who join the scheme during the period from 1st June, 2015 to 31st December, 2015 and who are not covered by any statutory social security schemes and are not income tax payers.

"All subscribers of Swavalamban scheme between 18-40 years of age can opt to migrate to Atal Pension Yojana through their bank account," PFRDA said in a communique. "(Such) subscribers between 18 to 40 years of age may approach their bank branches to submit the APY application along with PRAN (permanent retirement account number) card for migration to Atal pension yojana.

The subscribers’ PRAN issued under Swavalamban scheme would continue to be retained in APY and new PRAN will not be issued," the pension fund regulator said. Swavalamban scheme subscribers without bank account will have to open a bank account and simultaneously submit the request for migration from Swavalamban to the Atal pension yojana to the bank, it added.

http://www.mydigitalfc.com/news/pfrda-asks-nps-swavalamban-subscribers-join-pension-yojana-953

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Atal Pension Yojana (APY) is a National Pension Scheme (NPS) Rules and FAQs

Atal Pension Yojana (APY) – Scheme Details

The Government of India is extremely concerned about the old age income security of the working poor and is focused on encouraging and enabling them to join the National Pension System (NPS). To address the longevity risks among the workers in unorganised sector and to encourage the workers in unorganised sector to voluntarily save for their retirement, who constitute 88% of the total labour force of 47.29 crore as per the 66th Round of NSSO Survey of 2011-12, but do not have any formal pension provision, the Government had started the Swavalamban Scheme in 2010-11. However, coverage under Swavalamban Scheme is inadequate mainly due to lack of guaranteed pension benefits at the age of 60 therefore, announced a new initiative called Atal Pension Yojana with guaranteed pension benefits. The new scheme is scheduled for launch on 1st June 2015. The Scheme is designed to convert the pension less society into pensioned society.

1.      The APY will be applicable on all citizens of the country in the unorganised sector and the scheme is administered by the Pension Fund Regulatory and Development Authority (PFRDA) through NPS. An income tax payer or who is covered under statutory social security schemes can also join APY but those subscribers will not be eligible for GoI co- contribution.
2.      The Statutory Social Security Schemes not eligible for receiving Government Co- contribution under APY are as mentioned below:

•      Employees’ Provident Fund and Miscellaneous Provisions Act,1952
•      The Coal Mines Provident Fund and Miscellaneous Provisions Act,1948
•      The Seamen’s Provident Fund Act, 1966
•      The Assam Tea Plantations Provident Fund and Pension Fund Scheme Act ,1955
•      The Jammu and Kashmir Employees’ Provident Fund Act, 1961.

1.         Under the APY, subscribers would receive a fixed monthly pension of Rs. 1000 , Rs. 2000, Rs. 3000 , Rs. 4000 , Rs. 5000 at the age of 60 years, depending on their contributions, which itself would vary according to the age of joining the scheme. The minimum age of joining APY is 18 years and maximum age is 40 years. Therefore, minimum period of contribution by any subscriber under APY would be 20 years or more.
2.      The APY will be applicable to all persons in the unorganised sector, who are not a part of any statutory social security schemes, subject to the condition that the benefit of Central Government Co-Contribution of 50 % of the subscriber contribution or Rs 1000 per annum, whichever is less, would be available to the subscribers for a period of 5 years, i.e from 2015-16 to 2019-20, who joins the NPS before 31st December, 2015 and who are not income tax payers. The existing Swavalamban subscriber, if eligible, may be automatically migrated to APY with an option to opt out.
3. However, the benefit of five years of government Co- contribution under APY would not exceed 5 years for all subscribers. This would imply that if, as a Swavalamban beneficiary, he has received the benefit of government Co-Contribution of 1 year, then the Government co-contribution under APY would be available only 4 years and so on. Existing Swavalamban beneficiaries opting out from the proposed APY will be given Government co-contribution till 2016-17, if eligible, and the NPS Swavalamban continued till such people attained the age of exit under that scheme.
4.      The existing Swavalamban subscribers between 18-40 years will be automatically migrated to APY. For seamless migration to the new scheme, the associated aggregator will facilitate those subscribers for completing the process of migration. Those subscribers may also approach the nearest authorised bank branch for shifting their Swavalamban account into APY with PRAN details.
5.      The Swavalamban subscribers who are beyond the age of 40 and do not wish to continue may opt out the Swavalamban scheme by complete withdrawal of entire amount in lump sum, or may prefer to continue till 60 years to be eligible for annuities there under.
6.      The prospective subscribers wish to join the scheme will have option to join the NPS as an individual as per the existing arrangements through Point of Presence (PoP) or through Aggregator, the applicant should have Aadhar and valid mobile number. Aadhar and mobile numbers are pre requisites for becoming part of APY. The prospective subscribers may also join the scheme without Aadhar but it should be submitted subsequently.
7.      For joining the scheme, the prospective applicant should have a bank account or open an account. The bank account is to have facility of auto debit for enabling standing instructions to transfer the contributions on periodical basis, this will lead to reduction in contribution collection charges. The subscribers should keep the required balance in their savings bank accounts on the stipulated due dates to avoid any late payment penalty. Due dates for monthly contribution payment is arrived based on the deposit of first contribution amount. In case of repeated defaults for specified period, the account is liable for foreclosure and the GoI co-contributions, if any shall be forfeited. Also any false declaration about his/her eligibility for benefits under this scheme for whatsoever reason, the entire government contribution shall be forfeited along with the penal interest.
8.      Under APY, the individual subscribers shall have an option to make the contribution on a monthly basis. Banks are required to collect additional amount for delayed payments, such amount will vary from minimum Re 1 per month to Rs 10/- per month as shown below:

•      Re. 1 per month for contribution upto Rs. 100 per month.
•      Re. 2 per month for contribution upto Rs. 101 to 500/- per month.
•      Re 5 per month for contribution between Rs 501/- to 1000/- per month. iv. Rs 10 per month for    contribution beyond Rs 1001/- per month.

     9.       The fixed amount of interest/penalty will remain as part of the pension corpus of the subscriber.

    Operation of additional amount for delayed payments:

1.         APY module will raise demand on the due date and continue to raise demand till the amount is recovered from the subscriber’s account.
2.         The due date for recovery of monthly contribution may be treated as the first day /or any other day during the calendar month for each subscriber. Bank can recover amount any day till the last day of the month. It will imply that contribution are recovered as and when funds are available any point during the month.
3.         Monthly contribution will be recovered on FIFO basis- earliest due instalment will recovered first along with the fixed amount of charges as mentioned above.
4.         More than one monthly contribution can be recovered in month subject to availability of the funds. Monthly contribution will be recovered along with the monthly fixed due amount, if any. In all cases, the contribution to be recovered along with the fixed charges. This will be banks’ internal process. The due amount will be recovered as an when funds are available in the account.
5.      The banks should ensure transfer the accumulated contributions under APY on the second day to the Trustee Bank which will in turn transfer the amount for further investment as per existing PFRDA regulations applicable for Trustee Bank.
6.      All bank branches of Public/Private under CBS will be sourcing APY accounts and the banks will be adequately compensated for mobilization of eligible accounts as an incentive.
7.      The banks may employ BCs/Existing non – banking aggregators, micro insurance agents, and mutual fund agents as enablers for operational activities. The banks may share the incentives received by them from PFRDA/GoI as deemed appropriate.
8.      The subscribers shall submit the required application to the bank for enrolling under APY along with the required monthly contribution amount for the monthly guaranteed pension which is opted for.
9.      The subscribers of APY, if they subsequently become part of any social statutory schemes, should inform the bank and opt out of the scheme with immediate effect. Those subscribers may also transfer APY account into other variants of NPS as per terms/conditions stipulated for the respective scheme. If they have decided to exit from the scheme, the GoI co-contribution shall be forfeited and own contribution will be refunded.
10.      The amount collected under APY are managed by Pension Funds appointed by PFRDA as per the investment pattern specified by GoI. The subscriber has no option to choose either the investment pattern or Pension Fund.
11.      APY scheme provides guaranteed pension for the subscriber and to the spouse with return of corpus to the nominees. Hence, the spouse details and nominee details are to be captured while sourcing the accounts, or to be updated as per requirement, along with their Aadhar to obviate any dispute regarding pension entitlements.
12.      The subscribers are required to opt for a pension from Rs 1000- Rs5000 as per the chart and ensure payment of stipulated monthly contribution regularly. The subscribers can opt to decrease or increase pension amount during the course of accumulation phase. However, the switching option shall be provided once in year during the month of April.
13.      Detailed APY contribution chart for different age level shall be supplied by PFRDA to all the banks for reference.
14.      Each subscriber will be provided with an acknowledgement slip after joining APY which would invariably record the guaranteed pension amount, due date of contribution payment, PRAN etc. In case of defaulted payment for a month, the overdue amount will be recovered in the subsequent months along with penalty. For any gap in contribution subscriber can rejoin only with the pending contribution and the penal rate of interest /penalty.
15.      Upon completion of 60 years, the subscribers will submit the request to the associated bank for drawing the guaranteed pension.
16.      APY accounts opened from 1/6/2015 – 31/12/2015 are eligible for GoI co-contribution at the rate of 50% of the subscriber contribution amount with a cap of Rs 1000 per annum. However the scheme will continue after this date but Govt. Co-contribution will not be available. The GoI co-contribution is payable to eligible PRANs by PFRDA after receiving the confirmation from Central Record Keeping Agency at such periodicity as may be decided by PFRDA.
17.      Periodical information to the subscribers regarding balance in the account, contribution credits etc. will be intimated to APY subscribers by way of SMS alerts. The subscribers will have the option to change the non – financial details like nominee’s name, address, phone number etc whenever required.
18.      All subscribers under APY remain connected on their mobile so that timely SMS alerts can be provided to them at the time of making their subscription, auto-debit of their accounts and the balance in their accounts.
19.      All banks to be registered with PFRDA and all their branches to act as the Points of Presence/collection directly from the subscribers or indirectly through the BCs including the NBFCs, MFIs and individuals to be appointed as BCs by the banks.
20.      Banks will have the choice of uploading the data/information from individual branches or from their nodal centres depending on the nature of connectivity with the CRA with due regard to ease of operations.
21.      Since APY is based on defined benefits, the Government co-contribution under APY, the gap funding incase of any deficit in the pension corpus of subscriber in granting fixed pension and promotional and development expenditure will be funded by grants from Government of India. Actuarial valuation shall be conducted on every 2-3 year to arrive at any gap may be fully provided for.
22.      PFRDA may permit members of an existing non statutory social security scheme to migrate to NPS under such terms and condition as may be approved by the Government.

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Atal Pension Yojana to boost New Pension System corpus by Rs 50K crore

MUMBAI: Pension fund regulator PFRDA is hopeful of increasing the corpus of New Pension System (NPS) by Rs 40,000-50,000 crore by the fiscal-end, driven by subscription to a newly launched social security scheme.

The Centre has launched Atal Pension Yojana (APY) targeted at people in the unorganised sector who wish to join NPS and are not a member of any other social security plan.

Assets under management (AUM) of NPS currently stands at around Rs 89,000 crore. The NPS corpus grew by 38 per cent over 2013-14 to around Rs 25,000 crore in 2014-15.

"We expect the AUM of NPS to grow by Rs 40,000-50,000 crore by the fiscal-end, which will be driven by the newly launched social security scheme Atal Pension Yojana," Pension Fund Regulatory and Development Authority (PFRDA) Chairman Hemant Contractor said this evening.

"Right now we have around 85 lakh accounts under NPS of which 17-18 lakh accounts were opened last year. The last one year's return for NPS was around 11.5 per cent," he told reporters on the sidelines of an event at BSE here.

Three social security schemes, including APY, were launched by Prime Minister Narendra Modi in Kolkata in May.

However, unlike two of them - Pradhan Mantri Jeewan Jyoti Bima Yojana and Pradhan Mantri Suraksha Bima Yojana - which have seen issuance of 10 crore insurance policies, APY has received lukewarm response (2.15 lakh accounts so far).

Elaborating on it, Contractor said, "We have been able to open 2.15 lakh accounts under APY within a period of 20 days since its launch."

Citing the reason for slow pace of subscription, he said, "Actually what happened was that the two insurance schemes were launched first and the Atal Pension Yojana was launched after 10 days.

"So, the initial momentum was towards the insurance schemes. And insurance, all said and done, is a simple product. In comparison to that, pension is a little expensive and also complicated product which needs to be explained to the customers," said Contractor, a former State Bank of India Managing Director.

"However, we are ambitious on APY now as we are hopeful of opening two crore accounts under the scheme by the fiscal-end," he said, adding "with all tax breaks (announced in the Budget 2015-16), we expect to get more NPS subscribers too."





http://economictimes.indiatimes.com/wealth/savings-centre/savings-news/pension-watchdog-eyes-atal-pension-yojana-to-boost-new-pension-system-corpus-by-rs-50k-crore/articleshow/47634048.cms

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