New Delhi: The Comptroller and Auditor General of India (CAG) has raised serious questions over beneficiary eligibility and monitoring under the Atal Pension Yojana (APY). According to the audit report, 1,414,947 beneficiaries enrolled in the scheme were found to be income taxpayers. In addition, nearly 1.4 million beneficiaries were reportedly also covered under other pension or social security schemes. The CAG has called for stronger mechanisms to identify such cases, verify eligibility and improve coordination among different government welfare programmes.
The Atal Pension Yojana is primarily aimed at providing old-age income security to people, particularly those working in the unorganised sector, who do not have access to a regular pension system. The presence of income taxpayers and beneficiaries of other pension schemes has therefore raised concerns over the effectiveness of eligibility verification and monitoring. The audit indicates that inadequate tracking of changes in beneficiaries’ status and limited data matching between government schemes contributed to the identification of such cases.
1.4 Million Income Taxpayers Found Among APY Subscribers
The CAG audit found 1,414,947 APY subscribers who were income taxpayers. The report has called for their eligibility to be examined in light of the rules governing the scheme. Verification becomes particularly important in cases where a subscriber may have been eligible when joining APY but subsequently became an income taxpayer.
The findings also indicate that checking eligibility only at the time of enrolment may not be sufficient. A mechanism for periodically matching government databases could help track changes in beneficiaries’ status. Such monitoring can help identify individuals who may no longer meet eligibility conditions and prevent the continuation of benefits in cases where they are not permitted under the applicable rules.
Overlap With Other Social Security Schemes
The CAG has also raised concerns over the potential overlap between APY beneficiaries and beneficiaries of other pension and social security programmes. The audit refers to nearly 1.4 million beneficiaries who were also associated with other pension or social security schemes.
The report specifically highlights overlap among the target groups of the Atal Pension Yojana, the Pradhan Mantri Shram Yogi Maandhan Yojana and the Pradhan Mantri Kisan Maandhan Yojana. Since these schemes may cover similar categories of beneficiaries, stronger coordination and database matching are needed to ensure that eligible individuals receive the intended benefits while potential duplication is identified.
Two-Crore Subscriber Target Achieved Five Years Late
The Atal Pension Yojana was launched to provide financial security in old age, particularly to workers in the unorganised sector and people without access to a regular pension arrangement. The scheme initially had a target of reaching 20 million subscribers. According to the CAG, this target was achieved five years later than originally envisaged.
Enrolment subsequently increased rapidly. By September 2022, the total number of registered APY subscribers had crossed 40 million. However, the audit also observed a significant increase in subscribers whose income-tax status raised questions regarding their eligibility under the scheme.
The findings highlight the need for continued verification rather than relying solely on information collected at the time of enrolment. Changes in income and eligibility status over time can make periodic verification important for maintaining the integrity of the programme.
Recommendation for a Unified Pension Regulatory Mechanism
The CAG has recommended developing a unified pension regulatory mechanism to improve oversight of pension-related schemes. The report has suggested a more coordinated regulatory framework, drawing on the approach followed by regulators such as the Securities and Exchange Board of India (SEBI) and the Insurance Regulatory and Development Authority of India (IRDAI).
According to the audit findings, ineffective data matching across different social security and pension schemes can result in eligibility discrepancies and potential duplication of benefits. A centralised or better-coordinated system could strengthen beneficiary identification, record verification and monitoring of overlapping benefits.
The CAG report has placed the focus on ensuring that the Atal Pension Yojana reaches its intended beneficiaries while identifying individuals who may no longer meet eligibility conditions or who may be receiving benefits under multiple social security schemes. Action on the recommendations could lead to stronger eligibility verification, improved data sharing among government departments and tighter monitoring of APY beneficiaries.
