The Finance Ministry on Friday said payments banks and small finance banks will offer Atal Pension Yojana (APY).
“To strengthen the existing channels of APY distribution, it is felt that these new Payments Banks and Small Finance Banks will provide a boost to the outreach of subscribers under APY,” an official statement said.
Atal Pension Yojana is a government-run old age pension scheme being implemented through all banks across the country as per the mandate received from the Ministry of Finance and monitored periodically at PMO.
Payments banks and Small Finance Banks are new models of banks conceptualised by the Reserve Bank of India (RBI).
There are 11 Payments Banks and 10 Small Finance Banks which have received licence from the RBI to start banking operations in India.
“Participation in APY not only builds a pensioned society but also adds sustainable fee income to banks by way of attractive incentive for mobilizing APY at Rs 120-150 for each account,” the statement added.