Guarantee of minimum eight percent return in Atal Pension Yojana, Congress’s allegations have no merit: Sitharaman. Loktej Business News
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New Delhi, March 26 (Hindustan Reporter) Union Finance and Corporate Affairs Minister Nirmala Sitharaman said that the Atal Pension Yojana (APY) has the best design, which guarantees a minimum return of eight percent. On Congress’s allegations, he said that this is a well thought out and beneficial facility, which is in the best interest of the customers.
In a statement issued on ‘X’ Post (formerly Twitter), the Finance Minister said that Atal Pension Yojana has been designed on the basis of best option, so that premium payments continue automatically. This is a well thought out and beneficial feature, which is in the best interest of the customers. He said that people have to decide to leave instead of deciding to continue planning every year, which leads many of them to make the right decision and save for their retirement.
Earlier, Jairam Ramesh had attacked the Prime Minister Narendra Modi-led central government over the Atal Pension Scheme, alleging that it is a poorly designed ‘scheme’ and a ‘paper tiger’. This requires officials to deceive people and force them to participate in it.
Sitharaman, responding to Congress party’s Jairam Ramesh’s allegations on Atal Pension Scheme, said that he is ignorant of the basic principles of designing a good pension scheme. Nirmala Sitharaman, replying to Jairam Ramesh, said that it is called fixed income pension. They haven’t bothered to check the facts. The minimum return under APY is guaranteed by the Government of India at a minimum of 8 per cent, regardless of the prevailing interest rates and returns.
He said this is an attractive guaranteed minimum return. The Government of India pays a subsidy to PFRDA to compensate for any shortfall in actual returns. If APY subscribers achieve higher investment returns on their contributions, a higher pension will be paid to the subscribers. Currently the returns for this scheme are more than 8 percent.
Atal Pension Yojana was started by Prime Minister Narendra Modi on June 1, 2015. The youth of the country aged between 18 to 40 years can invest in this scheme. Under this scheme, all the candidates will have to pay a premium of Rs 210 every month. After this, on completion of 60 years of age, the youth investing in the scheme will get mental pension ranging from Rs 1000 to Rs 5000.
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