The Pension Fund Regulatory and Development Authority (PFRDA) is aiming to bring 50 lakh beneficiaries of the PM SVANidhi scheme under the Atal Pension Yojana (APY). This initiative seeks to leverage the success of the PM SVANidhi scheme, a micro-credit program for street vendors, to expand the reach of APY and provide a social security net for this vulnerable population.

PM SVANidhi Scheme

Launched on June 1, 2020, the PM SVANidhi scheme, under the Ministry of Housing and Urban Affairs, provides collateral-free loans up to ₹50,000 to eligible street vendors in incremental tranches. The loans are disbursed in three tranches: an initial ₹10,000, followed by ₹20,000 upon repayment of the first tranche, and ₹50,000 upon repayment of the second. The scheme aims to support street vendors by offering working capital and promoting digital transactions through cashback incentives. The PM SVANidhi scheme has supported over 68 lakh street vendors by replacing high-interest informal loans with accessible financial support.

Atal Pension Yojana (APY)

The Atal Pension Yojana (APY), launched on May 9, 2015, is a government-backed pension scheme primarily targeted at workers in the unorganized sector. It is open to all Indian citizens between 18 and 40 years of age who have a savings bank account. Under the APY, subscribers receive a guaranteed minimum monthly pension of ₹1,000 to ₹5,000 after the age of 60, depending on their contributions. The scheme is regulated by the PFRDA and aims to provide financial security during old age. As of October 1, 2022, income tax payers are not eligible to join APY.

The Synergistic Approach

PFRDA's initiative to enroll PM SVANidhi beneficiaries under APY is driven by the high loan repayment rates observed under the micro-credit scheme. According to PFRDA Chairman S Ramann, 82% of those who availed the first tranche of loan under PM SVANidhi repaid it to the bank, and 80% of those were approached by the bank to avail the next tranche. This demonstrates the creditworthiness and financial discipline of the street vendors, making them a promising segment for pension schemes like APY.

By targeting SVANidhi beneficiaries, PFRDA aims to address financial exclusion and ensure access to a formal pension system for a larger population. The PFRDA is actively promoting both mandatory and voluntary pension schemes to address the income needs of retired individuals and foster financial security during old age.

Recent Trends in APY Enrollment

The APY scheme has been gaining popularity, with over 1.17 crore new subscribers added in the financial year 2024-25. As of August 21, 2025, total gross enrollments under APY have crossed 8.11 crore. The scheme is particularly popular among women, who accounted for 55% of total enrollments in FY 2024-25. Moreover, 46% of enrollments in FY 2024-25 came from youth aged 18–25 years, indicating increasing awareness among the younger generation about retirement planning.

PFRDA's Role and Initiatives

The PFRDA plays a crucial role in regulating, promoting, and developing the pension sector in India. It oversees the National Pension System (NPS) and other pension schemes, including APY, ensuring their effective regulation and development. The PFRDA also focuses on expanding the reach of the NPS to various segments of the population, including government employees, private sector workers, and those in the unorganized sector.

PFRDA has been encouraging enrollment from a diverse range of participants, including those in the private sector and the unorganized sector, who traditionally have had limited access to formal pension systems. By diversifying pension products and lowering entry barriers, PFRDA aims to enhance financial inclusion and security for all demographic groups.

In a recent event, PFRDA organized the APY Annual Felicitation Programme in New Delhi, recognizing banks and other service providers for their outstanding contribution to the APY during FY 2024-25. PFRDA Chairperson S Ramann urged all stakeholders to continue working with dedication towards building a pensioned society. He also called on banks, particularly private sector lenders, to enhance their efforts to expand pension coverage across the country.