In these trying times of national lockdown and COVID-19 crisis, the government is making all the endeavors to make the lives of citizens easier. The life-threatening pandemic has brought the economic wheels of the country to a halt, which has affected people from all walks of life. The unorganized sector has taken the biggest hit, as the employees in this sector are mostly dependent on daily wages. To ease the lives of people in the unorganized sector, the government has decided to allow partial withdrawal from Atal Pension Yojna (APY). The circular regarding the partial withdrawal from APY may come in a couple of days.
APY is a pension plan initiated by the government to help workers in the unorganized sector. Under this pension scheme, all employees who are less than 40 years of age are eligible to get a pension up to Rs. 5000 per month on the attainment of 60 years of age. As of March 31, 2019, there are 2.11 crore subscribers of APY.
Due to the national lockdown, the workers of the unorganized sector are facing dire financial consequences and are in need of support from the government. The government has decided to allow partial withdrawal from APY.
Supratim Bandhopadhyay Chairman of the Pension Fund Regulatory and Development Authority of India (PFRDA) has declared that the government’s circular regarding the APY subscribers being allowed partial withdrawal from the pension fund could come in a couple of days. Partial withdrawal from APY was allowed under special circumstances, now the PFRDA has included COVID-19 under the list of special conditions. The partial withdrawal will be limited to 25% of the fund.