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Banks Asked To Use Banking Correspondents For Atal Pension Scheme

New Delhi: The Pension Fund Regulatory and Development Authority (PFRDA) has asked banks
to employ their banking correspondents for increasing coverage of the Atal Pension scheme among low income groups.

The objective of the government’s flagship Pradhan Mantri Jan Dhan scheme is to provide banking facilities to the unbanked, not only banking accounts, but also credit facilities and bring them under the fold of insurance and pension, the regulator said in a statement.

“However the country’s eligible population which is in the age group of 18-40 years is more than 46 crore, hence, banks which are the critical links of the scheme should actively employ Banking Correspondents (BCs) for reaching wider and unorganized low income people,” the Pension Fund Regulatory and Development Authority said.

There are over 1.70 lakh banking correspondents operating in the country with different banks, but very few of them are actively associated with APY, it added.

The PFRDA further said banks are sharing part of the promotional incentive provided by government with BCs and hence BCs can build a sustainable revenue model by sourcing APY.

“Banks used benefit from having savings bank accounts. APY collects regular monthly contributions only through auto debit from the account which adds up to the transactions in the account,” it said.

For activating the BC Channel, the regulator in association with country’s largest bank SBI (State Bank of India) had held a workshop in Gurgaon near here.

Source: NDTV

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