By Amogh Mund : 

Amitabh Bacchan happens to be the most respected silver screen personality of India. I have been a fan of his work since my childhood. Every time I hear a voice resembling his, I can’t help but pay attention to what he is saying. These days, I hear him speaking about two of Modi Sarkaar’s pet programmes for citizens of India.

One of them being “Atal Pension Yojana”. It was a great show of a Modi sarkaar’s leadership and its concern towards the citizen to care for their old age and hence launch such a pension plan. Amitabh keeps educating to just deposit Rs. 210/- per month from age of 18 and receive Rs. 5000/- per month from age of 60 yrs.

Modi Ji has been widely accepted and appreciated for his communication and marketing skills. Modi Ji is undoubtedly my campaign and communication super hero. Everybody I spoke to was in appreciation for Modi sarkaar’s this program.

So effective was this communication of “Atal Pension Yojana” that I decided to join the program myself. It is in my nature, to review any plan in detail once before signing in. Thus I started. If I pay Rs. 210/- per month (as advertised Amitabh Ji on TV channels) from age of 18 yrs to 60 Yrs, I would have paid Rs. 105,840/- (around 1 Lakh) in 504 months. But that’s just principal amount. What about interest?? These days, banks are offering a retail interest rate of minimum of 8.5%-9% on fixed deposits to those below 60 yrs. An extra 0.25% to Senior Citizens. Thus I would have collected Rs. 10 Lakh plus in my account by age of 60 years at an interest of 8.5%.

I was aghast when I realized that at prevailing retail interest rate of 8.5%, the bank would give me Rs. 7366/- per month from age of 60 Yrs for which Modi government was offering only Rs. 5000/- per month. I obviously took that this “Atal” yojana should be better than prevailing market rates. So where does the remaining Rs. 2366/- per month go??

“Atal Pension Yojana” is translating to 7.67% rate of Interest. Besides, it denies additional 0.25% interest to the investing senior citizens. After all, if citizens invest in bank, they also have the liberty to withdraw the collected sum of Rs. 10 lakh plus if they wish to, but in Modi Sarkaar’s “Atal Pension Yojana”, Amitabh Ji is not saying whether citizens can get back their collected sum if they wish to. As per the program brochure, in the period of investment, if the citizen discontinues payment for 5 years, the account would be closed.

I kept asking myself that when any citizen can get better pension without any Government plan or program, why is Modi sarkaar spending crores of Indian Tax Payer’s money in communicating to its citizen encouraging them to invest in a plan which will give them less than what they can get normally from any bank. Also banks will return the total money collected, but Amitabh Ji has not clarified if Atal Pension Yojana will at all return the total collected money if citizen wishes to.

The Hype : Investment of Rs. 210/- per month from age of 18 in “Atal Pension Yojana” will guarantee pension of Rs. 5000/- per month from age of 60 .

The Truth : Any bank on same investment in fixed deposit will guarantee pension of Rs. 7366/- with assurance to encash Rs. 10Lakh+ collected sum without any “Atal Pension Yojana”.

The Hype : Pension of Rs. 5000/- is a great amount for Senior Citizens and “Atal Pension Yojana” is a step in protection Senior Citizens old age requirement.

The Truth: Money is an economic instrument that has in its nature to reduce its worth in time. Every 10 Year, value of Rupee is decreasing 25 fold. An 18 Yrs old starting investment after educated by Amitabhji today for 42 years, will receive Rs. 5000/- in 2057 when the value of Rs. 5000/- shall be equivalent to value of Rs. 50/- today. So much for Old Age protection plan!!!!!!!!

[Amogh Mund, a management graduate, is full time social activist working for the interest and rights of people.]