On 21 January 2026, the Union Cabinet approved the continuation of the Atal Pension Yojana (APY) up to FY 2030-31. It also approved ₹5,000 crore equity support for the Small Industries Development Bank of India (SIDBI) to improve credit flow to the MSME sector. The decision links two exam-relevant themes: social security for informal workers and finance for small enterprises. APY was launched on 9 May 2015 to provide old-age income security to workers in the unorganised sector. Under the scheme, subscribers receive a guaranteed minimum pension of ₹1,000 to ₹5,000 per month from the age of 60, depending on their contributions. As of 19 January 2026, more than 8.66 crore subscribers had enrolled. The Cabinet also extended government support for promotional and developmental activities, awareness, capacity building and gap funding so that the scheme remains viable and reaches more unorganised workers. The SIDBI equity support is to be infused in three tranches: ₹3,000 crore in 2025-26 and ₹1,000 crore each in 2026-27 and 2027-28. This strengthens SIDBI's capital position and enables it to raise resources at competitive rates for lending to MSMEs. The official estimate says MSMEs receiving financial assistance may rise from 76.26 lakh at the end of FY 2025 to 102 lakh by the end of FY 2028, adding about 25.74 lakh new MSME beneficiaries. For UPSC/RAS preparation, the topic is important for prelims facts on schemes and institutions, and for mains themes such as inclusive growth, financial inclusion, MSME credit, employment generation and social protection for informal workers.
Cabinet Continues Atal Pension Yojana Till 2030-31; ₹5,000 Crore Equity to SIDBI
APY extended to 2030-31; ₹5,000 crore SIDBI equity for MSME credit expansion.
Key facts
- The Union Cabinet approved continuation of APY up to FY 2030-31 on 21 January 2026.
- APY provides a guaranteed minimum pension of ₹1,000 to ₹5,000 per month from age 60 to unorganised-sector workers.
- APY had enrolled more than 8.66 crore subscribers as of 19 January 2026.
- ₹5,000 crore equity support was approved for SIDBI to strengthen credit flow to MSMEs.
- The SIDBI support is expected to add about 25.74 lakh new MSME beneficiaries by FY 2028.
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Frequently asked questions
What did the Cabinet decide on APY?
The Cabinet approved continuation of the Atal Pension Yojana up to FY 2030-31 and extended government support for promotional activities, awareness, capacity building and gap funding.
Who is APY meant for and what pension does it provide?
APY is important for unorganised-sector and low-income workers. Based on contributions, it provides a guaranteed minimum pension of ₹1,000 to ₹5,000 per month from the age of 60.
Why is ₹5,000 crore equity support being given to SIDBI?
The support is meant to strengthen SIDBI's capital position so that it can raise resources at competitive rates and increase credit flow to the MSME sector.
Why is this topic relevant for exams?
Prelims can ask facts about APY, SIDBI, MSMEs and pension amounts. Mains can use it under social security, financial inclusion, informal workers, MSME finance and employment generation.
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