Atal Pension Yojana (APY) - Online Scheme - Eligibility & Benefits
Atal Pension Yojna (APY) is a pension scheme backed by the government of India. This scheme guarantees definite pension for those who subscribe to the scheme. This scheme was launched in the year 2015 by the central government.
Atal Pension Yojna (APY) is a pension scheme backed by the government of India. This scheme guarantees definite pension for those who subscribe to the scheme. Even though the National Pension Scheme (NPS) was available for the citizens there was a need of launching a social security pension cum return of corpus scheme primarily targeting workers from the unorganized sector.
Let us study the features of Atal Pension Yojna in detail
This scheme was launched in the year 2015 by the central government. This scheme encourages individuals to save regularly for having monthly pension after the age of 60 years.
What is Atal Pension Yojna (APY)
Atal Pension Yojna (APY) is a Social Security Scheme introduced and guaranteed by Govt. of India. This scheme is aimed at providing a steady stream of income by way of monthly pension after the age of 60 years. This scheme was launched in the year 2015. This scheme is managed by the Pension Funds Regulatory Development Authority of India (PFRDA) on behalf of the govt.
What is the Atal Pension Yojana Eligibility/Criteria
To avail benefits from the Atal Pension Yojana, you must fulfill the below requirements:
- Must be a citizen of India.
- Must be between the age of 18-40
- Should make contributions for a minimum of 20 years.
- Must have a bank account linked with your Aadhar
- Must have a valid mobile number
How much pension is available in APY
APY promises a monthly pension of Rs. 1000/-, Rs. 2000/-, Rs. 3000/-, Rs. 4000/- and Rs. 5000/- depending on the contribution made by the subscriber. The pension is paid only after the attainment of 60 years of age and after the death, subscriber pension is paid to the spouse. And after the death of both subscribers and nominee accumulated corpus till the age of 60 years of the subscriber is paid to the nominee.
What is the monthly contribution for the Scheme
The following table gives details on the monthly contributions based on pension plan and age under the Atal Pension scheme.
For example, if anybody, aged 35, years wants to receive a monthly pension of Rs. 5000/- every month after 60 years them he will have to contribute Rs. 902/- every month till the age of 60 years. After attaining the age of 60 years he will receive Rs. 5000/- as monthly pension from the scheme and after his death this monthly amount of pension will be paid to his wife. And after the death nominee will be paid the accumulated corpus of Rs. 8.50 lakhs.
What are the withdrawal condition from APY
After the age of 60 years pension is paid on a monthly basis to the subscriber and after his death monthly pension is paid to the spouse. And accumulated corpus is also returned to the nominee. In case the subscriber dies before the age of 60 spouses will have the option either to exit the scheme or to continue to maintain the account in subscriber name for the remaining years and receive monthly pension thereafter.
In case a subscriber wants to voluntarily exit APY, he shall only be refunded the contributions made by him to APY, along with the net actual accrued income earned on his contributions (after deducting the account maintenance charges).
How to Apply For Atal Pension Yojana
- You can visit any of the nationalized banks these banks to start your APY account.
- Atal Pension Yojana forms are available online and at the bank. You can also download the from the official website.
- Forms are available in multiple languages English, Hindi, Bangla, Gujarati, Kannada, Marathi, Odia, Tamil, and Telugu.
- Fill up the application form and submit it to your bank.
- Also mention a valid mobile number/contact no, if you haven’t already provided to the bank.
- Submit a photocopy of your Aadhaar card.
You will be sent a confirmation message after your application is approved.
Where to open the APY Account
The APY account can be opened with any nationalized and commercial bank in our country by submitting the application form and the required KYC documents. Recently some banks have also started giving the facility to open APY account online as well. Upon successful opening of an account, the subscriber is allotted Permanent Retirement Account Number (PRAN).
Terms of penalty
If any case beneficiary not able and delays in the payment of contributions, the following penalty charges are applicable
- Re. 1 for monthly contributions of up to Rs. 100.
- Rs. 2 for monthly contributions within Rs. 101 and Rs. 500.
- Rs.5 for monthly contributions within Rs. 501 and Rs. 1000.
- Rs.10 for monthly contributions of Rs. 1001 and above.
Other features of APY
The amount is directly debited from the bank account for APY contributions. In case of default penalty of Rs. 1 /- per month is levied for every contribution of Rs. 100/- and in parts thereof. If a default on subscription is for 6 months, the account is frozen and if the default continues for 12 months, the account is closed automatically and the remaining amount is paid to the subscriber.
Atal Pension Yojna is of significant importance for those who do not have any pension benefit. Thus it guarantees monthly pension to its subscriber and also gives a sense of independence in older age.