Definition
Atal Pension Yojana
Atal Pension Yojana is a government-backed pension scheme for workers, mainly in the unorganised sector, offering a guaranteed minimum pension after age sixty.
Atal Pension Yojana (APY) lets subscribers contribute regularly during their working years in exchange for a guaranteed monthly pension from age sixty, with the spouse and nominee covered thereafter. The pension amount depends on the contribution level and the age at joining.
Regulated by the PFRDA, APY targets unorganised-sector workers who lack formal retirement cover, with the government guaranteeing the minimum pension. It complements the National Pension System in extending old-age income security to a wider population.
Related terms
- Direct Benefit Transfer (DBT)Direct Benefit Transfer is the routing of government subsidies and welfare payments straight into beneficiaries' bank accounts to cut leakage and middlemen.
- PFRDAPFRDA is the Pension Fund Regulatory and Development Authority, which regulates the National Pension System and promotes old-age income security.
- Pradhan Mantri Jan Dhan YojanaPM Jan Dhan Yojana is the financial inclusion scheme that provides basic, no-frills bank accounts to unbanked households, often with overdraft and insurance benefits.
Plain-English explainer from The Dispatch Investors Encyclopedia. General information, not financial advice.