Karnataka Grameena Bank was conferred with the National Award by the Pension Fund Regulatory and Development Authority on May 27, 2026, for its exceptional performance in subscriber enrolment. The bank achieved the highest enrolment figures for the Atal Pension Yojana among all financial institutions in Karnataka during the 2025-26 financial year. This recognition highlights the bank’s pivotal role in expanding social security coverage to the unorganised sector.
Karnataka Grameena Bank Secures National Recognition
The award was presented during the Atal Pension Yojana (APY) Annual Felicitation Programme held in New Delhi. Shreekant M. Bhandiwad, the Chairman of Karnataka Grameena Bank, received the honour from M. Nagaraju, Secretary of the Department of Financial Services (DFS) under the Ministry of Finance, and S. Ramann, the Chairperson of the Pension Fund Regulatory and Development Authority (PFRDA).
The National Award serves as a testament to the bank’s consistent efforts in promoting financial inclusion and ensuring old-age income security for workers in the unorganised sector. By focusing on rural and semi-urban areas, the bank has successfully brought a significant number of individuals under the formal pension framework.
Surpassing Enrolment Targets for APY
During the financial year 2025-26, Karnataka Grameena Bank demonstrated outstanding performance by enrolling 2,49,185 new subscribers under the Atal Pension Yojana. This achievement significantly exceeded the target of 1,75,500 accounts set for the bank by the Department of Financial Services and PFRDA.
The bank reached an achievement level of 142 percent of its allocated target, which was the highest performance recorded among all banks operating in the state of Karnataka. This proactive approach has helped the bank maintain its leadership position in implementing social security schemes.
About Karnataka Grameena Bank
Karnataka Grameena Bank is a leading Regional Rural Bank (RRB) headquartered in Ballari, Karnataka. The bank was officially established on May 1, 2025, through the amalgamation of Karnataka Gramin Bank and Karnataka Vikas Grameena Bank. This merger was part of the government’s policy to consolidate RRBs within a state to improve operational efficiency and capital adequacy.
The bank is sponsored by Canara Bank and is owned jointly by the Government of India (50 percent), Canara Bank (35 percent), and the Government of Karnataka (15 percent). It operates through a vast network of approximately 1,750 branches, making it the second largest Regional Rural Bank in India. With a total business turnover exceeding ₹1.10 lakh crore, the bank serves nearly two crore customers across the state.
Understanding the Atal Pension Yojana (APY)
The Atal Pension Yojana (APY) is a flagship social security scheme launched by the Government of India on May 9, 2015. The scheme was introduced to provide a guaranteed monthly pension to workers in the unorganised sector, ensuring they have a steady income after retirement.
Eligibility and Contributions
The scheme is open to all Indian citizens aged between 18 and 40 years. Subscribers must have a valid savings bank account or a post office savings account. The contribution amount is determined based on the age of joining and the chosen pension slab. To receive the pension, a subscriber must contribute for at least 20 years until they reach the age of 60.
Pension Benefits
Upon reaching 60 years of age, subscribers are entitled to a fixed monthly pension. There are five available pension slabs:
- ₹1,000
- ₹2,000
- ₹3,000
- ₹4,000
- ₹5,000
In the event of the subscriber’s death, the same pension amount is paid to the spouse for life. After the death of both the subscriber and the spouse, the accumulated pension corpus is returned to the nominee.
Income Taxpayer Exclusion
Effective from October 1, 2022, the government introduced a new rule stating that any citizen who is or has been an income taxpayer is no longer eligible to join the Atal Pension Yojana. This move was intended to ensure that the benefits of the government-backed scheme are better targeted toward the lower-income groups in the unorganised sector.
Role of PFRDA in Pension Regulation
The Pension Fund Regulatory and Development Authority (PFRDA) is the statutory regulatory body responsible for the supervision and regulation of pensions in India. Initially established as an interim body in 2003, it was granted statutory status on February 1, 2014, following the notification of the PFRDA Act, 2013.
Headquartered in New Delhi, PFRDA operates under the jurisdiction of the Ministry of Finance. Its primary mandate is to promote old-age income security by establishing, developing, and regulating pension funds. The authority is responsible for administering two major pension schemes: the National Pension System (NPS) and the Atal Pension Yojana (APY). It also registers and regulates intermediaries such as Pension Fund Managers, Trustee Banks, and Central Recordkeeping Agencies to protect the interests of subscribers.
Key Takeaways
- Karnataka Grameena Bank received the National Award from PFRDA for its outstanding performance in enrolling subscribers under the Atal Pension Yojana.
- The bank enrolled 2,49,185 subscribers in the financial year 2025-26, achieving 142 percent of its target.
- Karnataka Grameena Bank was formed on May 1, 2025, through the merger of Karnataka Gramin Bank and Karnataka Vikas Grameena Bank, with its headquarters in Ballari.
- The Atal Pension Yojana was launched on May 9, 2015, and targets Indian citizens in the age group of 18 to 40 years.
- Since October 1, 2022, individuals who are income taxpayers are excluded from joining the Atal Pension Yojana.
- PFRDA was established as a statutory body in 2014 and is headquartered in New Delhi under the Ministry of Finance.
