DFS Asks Banks to Push APY Subscribers Towards Higher Pension Slabs

The Department of Financial Services (DFS) has asked banks to encourage Atal Pension Yojana (APY) subscribers to move towards higher pension slabs as incomes rise, citing concerns over the large concentration of accounts in the minimum ₹1,000 monthly pension category, as per PTI reports. 

DFS Flags Concerns Over Pension Adequacy 

Financial Services Secretary M Nagaraju said the current pattern could affect retirement income adequacy in the long term.  

He said banks need to improve guidance provided at the time of enrolment so subscribers choose pension amounts based on future financial requirements. 

The comments were made at the APY Annual Felicitation Programme organised by the Pension Fund Regulatory and Development Authority (PFRDA). 

APY Enrolments Continue to Rise 

Atal Pension Yojana was launched in 2015 to provide pension coverage to workers in the unorganised sector. The scheme offers a guaranteed pension between ₹1,000 and ₹5,000 per month after the age of 60, depending on the contribution made by subscribers. 

Official data showed APY enrolments crossed 9.10 crore as of 18 May 2026. The scheme added 1.35 crore new subscribers during FY26, the highest annual addition recorded so far. 

Nagaraju said enrolment growth remained strong, but banks should also focus on ensuring regular contributions so accounts remain active over the long term. 

Urban Coverage  

The DFS Secretary said banks, particularly private sector lenders, should expand outreach among urban informal workers, including delivery workers, domestic staff and street vendors, many of whom remain outside formal pension coverage. 

Pension Review 

PFRDA Chairman S Ramann said the government is examining whether the existing pension ceiling under APY would remain sufficient in the coming years. 

He said feedback from subscribers suggested that the current upper limit of ₹5,000 per month may not be adequate after 15 to 20 years. Discussions on the matter are ongoing and no decision has been taken so far. 

During the programme, State Bank of India, Union Bank of India, UCO Bank and Punjab & Sind Bank were recognised for their contribution to APY enrolments. 

Read More: Government to Launch VB-G RAM G Scheme Replacing MGNREGA on July 1, 2026! 

Conclusion  

DFS and PFRDA have flagged concerns over low pension slab selection under APY, while reviewing the adequacy of the scheme’s current pension limits. 

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