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The Union Cabinet has approved the extension of the Atal Pension Yojana till 2030-31, ensuring pension security for millions, and sanctioned ₹5,000 crore equity support to SIDBI to boost MSME credit, beneficiaries, and employment generation across India.
Cabinet Clears Extension of Atal Pension Yojana
New Delhi: The Union Cabinet chaired by the Prime Minister, Narendra Modi, today approved the continuation of Atal Pension Yojana (APY) up to FY 2030-31 along with extension of funding support for promotional and developmental activities and gap funding.
In a decision that would help millions of people, the government today decided to extend the Atal Pension Yojna (APY) for five years till 2020-31. The scheme offers a guaranteed pension of Rs 1000 to Rs 5000 per month (based on contributions) starting at age of 60.
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The scheme ensures old-age income security for millions of low-income and unorganised sector workers. Enhances financial inclusion and supports India’s transition to a pensioned society. Strengthens the vision of Viksit Bharat @2047 by providing sustainable social security.
The scheme will continue up to 2030-31 with Government support for: Promotional and Developmental activities to expand outreach among unorganised workers including awareness, capacity building.
Gap funding to meet viability requirements and ensure sustainability of the scheme.
The Atal Pension Yojna was launched in May, 2015 with the objective of providing old-age income security to workers in the unorganised sector. APY offers a guaranteed minimum pension of Rs.1,000 to Rs.5,000 per month starting at age 60, based on contributions.
As of 19th January, 2026, over 8.66 crore subscribers have been enrolled, making APY a cornerstone of India’s inclusive social security framework, the government said in a statement adding that sustained government support is essential for continued awareness, capacity building, and bridging of viability gaps to ensure the scheme’s sustainability.
In another major decision, the Cabinet approved Rs 5000 crore equity support to SIDBI. This would add 25.74 lakh new MSME beneficiaries, the government said in a statement after a meeting of the Union Cabinet, chaired by Prime Minister Modi.
The equity capital of Rs.5000 crore shall be infused into SIDBI by the Department of Financial Services (DFS) in three tranches of Rs.3,000 crore in financial year 2025-26 at the book value of Rs.568.65/- as on 31.03.2025 and Rs.1,000 crore each in financial year 2026-27 and financial year 2027-28 at the book value as on 31st March of the respective previous financial year, an official statement said.
Post equity capital infusion of Rs.5000 crore, number of MSMEs to be provided financial assistance is expected to increase from 76.26 lakh at the end of Financial Year 2025 to 102 lakhs (approximately 25.74 lakh new MSME beneficiaries will be added) by the end of Financial Year 2028. According to estimates 1.12 crore new employment opportunities will be generated with the expected addition of 25.74 lakh new MSME beneficiaries by the end of Financial Year 2027-28.
This infusion of additional capital would enable SIDBI to generate resources at fair interest rates, thereby increasing the flow of credit to Micro, Small & Medium Enterprises (MSMEs) at competitive cost.
