Cabinet Approves Extension of Atal Pension Yojana Till 2030-31

New Delhi, Jan 2026 : The Union Cabinet, chaired by Prime Minister Narendra Modi, on Wednesday approved the continuation of the Atal Pension Yojana (APY) up to the financial year 2030-31, reaffirming the government’s commitment to strengthening social security for workers in the unorganised sector. The decision also includes the extension of government funding support for promotional and developmental activities, along with gap funding to ensure the long-term viability of the scheme.

According to a statement issued by the Ministry of Finance, the scheme will continue with government backing for awareness generation, capacity building, and outreach initiatives aimed at expanding coverage among unorganised workers. The approved gap funding will help meet financial sustainability requirements and ensure the smooth functioning of the pension programme in the coming years.

Launched on May 9, 2015, the Atal Pension Yojana was designed to provide old-age income security to workers in the unorganised sector, who often lack access to formal pension benefits. Under the scheme, subscribers are entitled to a guaranteed minimum monthly pension ranging from Rs 1,000 to Rs 5,000, starting at the age of 60, depending on their contribution levels and the age at which they join.

Over the years, APY has emerged as a cornerstone of India’s inclusive social security framework. As of January 19, 2026, more than 8.66 crore subscribers have been enrolled under the scheme, reflecting its growing acceptance among low-income groups. The government has described APY as a key instrument in enhancing financial inclusion and supporting India’s transition towards a pensioned society.

The Finance Ministry noted that sustained government support is critical for maintaining momentum, particularly in awareness creation and capacity building, and for bridging any viability gaps that may arise as the scheme expands. The continuation of APY also aligns with the broader national vision of “Viksit Bharat @2047,” which emphasises sustainable and inclusive social security systems.

Data from the APY highlights the pivotal role played by banking institutions in driving enrolments. Public-sector banks account for around 70.44 per cent of total subscribers, followed by regional rural banks at 19.80 per cent. Private-sector banks contribute 6.18 per cent of enrolments, while cooperative banks account for 2.39 per cent. Smaller contributions come from payment banks (0.37 per cent) and small finance banks (0.62 per cent).

The scheme has witnessed strong growth in recent years, registering a 24 per cent increase in gross enrolments by the end of the 2023-24 financial year. With the Cabinet’s latest approval, the Atal Pension Yojana is expected to further expand its reach, offering financial security and dignity to millions of workers in their post-retirement years.