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Informist, Wednesday, May 20, 2026

 

--Banking secy: Must ensure social security umbrella covers every Indian

--Banking secy: Have vast opportunity to expand pension coverage in urban areas

 

NEW DELHI - Department of Financial Services Secretary M. Nagaraju Wednesday flagged risks of concentration of pension payout at the lower bracket of INR 1,000 under the Atal Pension Yojana, and asked banks, along with other financial institutions, to better guide individuals to opt for higher payout as their income improves.

 

"We must ask ourselves would INR 1,000 monthly pension secure an adequate dignity for our subscribers 15 years later?" Nagaraju said while speaking at an event organised by Pension Fund Regulatory and Development Authority. "We must ensure APY (Atal Pension Yojana) does not only create a pension pool but a genuine social security," the banking secretary said. 

 

To ensure this, he listed some focus areas for banks and all other institutions who help onboard subscribers under pension net.

 

According to him, banking partners must prioritise consistency and continuity, with focus on ensuring regular contributions, turning a registered account into a lifelong security. Secondly, pension activity in the urban front must improve, Nagaraju said. There is a vast untapped potential in our urban centres, he said. "I implore our private sector banks, in particular, to fully activate their urban banks to reach the informal workforce, the street vendors, the delivery partners, and the domestic helpers who fill our city accounts, but lack the safety level," he said. 

 

Nagaraju also said banks must continue to innovate ways to communicate the benefits of pension, and ensure that every citizen, regardless of their literacy level, understands that this is not just a saving plan but a guaranteed liability for their success. End

 

Reported by Priyasmita Dutta and Sagar Sen 

Edited by Akul Nishant Akhoury

 

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