The government has made a major decision regarding the Atal Pension Yojana; applications can now be submitted until 2031..
In a meeting chaired by Prime Minister Narendra Modi, the Union Cabinet took two important decisions regarding social security and the MSME sector. The Cabinet approved the continuation of the Atal Pension Yojana until the financial year 2030-31 and also decided to provide equity support of ₹5,000 crore to SIDBI (Small Industries Development Bank of India). These two steps aim to provide social security to the weaker sections of the country and to ensure access to affordable loans for small industries.
Who benefits from the Atal Pension Yojana?
The Cabinet approved the continuation of the Atal Pension Yojana until 2030-31, along with increased funding support for its promotion, awareness, and development activities. It also decided to continue providing the necessary gap funding to ensure the long-term sustainability of the scheme. This will further increase the reach of the scheme to unorganized sector workers and low-income individuals.
How much pension is received?
The Atal Pension Yojana was launched on May 9, 2015, to provide financial security in old age to workers in the unorganized sector. Under this scheme, a guaranteed pension of ₹1,000 to ₹5,000 per month is provided after the age of 60, depending on the individual's contribution.
As of January 19, 2026, more than 8.66 crore people have joined this scheme, making it a strong pillar of the country's social security system. The government believes that extending the scheme will help in creating a pension-based society in India and will also strengthen the goal of 'Developed India 2047'.
Major decision for MSMEs
In addition, the Cabinet also approved providing equity support of ₹5,000 crore to SIDBI to provide relief to the MSME sector. This amount will be disbursed in three phases through the Department of Financial Services: ₹3,000 crore in the financial year 2025-26, and ₹1,000 crore each in 2026-27 and 2027-28.
This capital will enable SIDBI to strengthen its financial position and provide a larger volume of affordable credit to MSMEs. According to the government, this equity investment could increase the number of MSMEs receiving financial assistance from SIDBI from 76.26 lakh to 1.02 crore. This means approximately 25.74 lakh new MSMEs will directly benefit.
An estimated creation of over 1 crore jobs
Based on current data, this is expected to create approximately 1.12 crore new jobs, as each MSME employs an average of about 4 people. The government stated that SIDBI's risk-weighted assets are expected to increase in the coming years as the bank focuses on providing digital and unsecured loans, venture debt to startups, and increased financing to MSMEs.
Therefore, a strong capital base is essential to maintain SIDBI's Capital to Risk-Weighted Assets Ratio (CRAR) and safeguard its credit rating. While the expansion of the Atal Pension Yojana will provide financial security in old age to millions of people, the equity support given to SIDBI will pave the way for affordable credit, increased employment, and robust growth in the MSME sector.
Both these decisions are considered crucial steps towards making the country's economy inclusive and strong.
Disclaimer: This content has been sourced and edited from Dainik Jagran. While we have made modifications for clarity and presentation, the original content belongs to its respective authors and website. We do not claim ownership of the content.
