Banks not enthusiastic about Atal pension scheme? PFRDA gets cracking

Banks not enthusiastic about Atal pension scheme? PFRDA gets cracking

Are you a member of the Atal pension scheme? Is clear information on the scheme not forthcoming? Don’t you worry. The Pension Fund Regulatory and Development Authority (PFRDA) is on the job.

All banks have been instructed to display detailed information regarding the scheme.

Workers in the unorganised sector can access this scheme only through banks. Yet all banks were not keen on promoting the scheme, judging by the complaints received by the authority. That prompted the authority to send a circular to the banks regarding the scheme.

On top of that, many members of the scheme had been unable to contribute to the scheme due to the situations related to the COVID-19 restrictions. They say that banks were not very helpful in addressing their concerns. This is the backdrop in which the authority had to ask the banks to display information related to the scheme visibly on their premises.

Atal Pension Yojana is unique because a person can be a member of the scheme only through a bank. If banks discourage potential members, the scheme is bound to be a failure.

Since some banks were found to falter in opening pension accounts, updating details of beneficiaries, increasing or decreasing pension funds and withdrawing money, the PFDRA had to step in with clear instructions to the banks.

Anyone aged between 18 years and 40 years can be a member of the Atal Pension Yojana. They can expect to receive monthly pension ranging from Rs 1,000 to Rs 5,000 depending on the premium you pay. The government has allowed members to rearrange their accounts to factor in the uncertainties created by the COVID-19 lockdown. Changes are possible up to September 30. Members who fail to pay up the defaults of rearrange their accounts within September 30 will have to pay a fine.

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