Atal Pension Yojana (APY) is
a guaranteed pension scheme for the citizens of India, focused on unorganized
sector workers such as maids, drivers, gardeners etc. This scheme was launched
by the Government of India in June 2015.
The scheme aims to help weaker section to save up money for their old age while they are working and get a guaranteed monthly pension post-retirement. In this post, let’s take a look at the features and eligibility of Atal Pension Yojana (APY).
The scheme aims to help weaker section to save up money for their old age while they are working and get a guaranteed monthly pension post-retirement. In this post, let’s take a look at the features and eligibility of Atal Pension Yojana (APY).
Atal Pension Yojana (APY)
The scheme is administered
by the PFRDA (Pension Fund Regulatory and Development Authority) through the National
Pension System (NPS).
Under this scheme, a fixed guaranteed minimum pension of Rs. 1,000/-, 2,000/-, 3,000/-, 4,000/- and 5,000/- per month will be given on attaining the age of 60 years.
The pension will be determined based on your age and the contribution made by you.
Under this scheme, a fixed guaranteed minimum pension of Rs. 1,000/-, 2,000/-, 3,000/-, 4,000/- and 5,000/- per month will be given on attaining the age of 60 years.
The pension will be determined based on your age and the contribution made by you.
Features of Atal Pension Yojana (APY)
1. Under APY, there is a
guaranteed monthly pension ranging from Rs 1000 to 5000 per month to the
subscriber on attaining the age of 60 years.
2. The benefit of minimum
pension would be guaranteed by the Government of India.
3. The government of India
will also co-contribute 50% of the subscriber’s contribution or Rs. 1000 per
annum, whichever is lower, for a period of 5 years who joined the scheme in the
period June 01, 2015 to March 31, 2016.
4. Government
co-contribution is available for those only who are not covered by any
Statutory Social Security Schemes and is not the income tax payer.
5. All bank account holders
can join Atal Pension Yojana (APY).
Eligibility criteria for Atal Pension Yojana (APY)
You need to fulfill the
below-mentioned requirement to avail benefits from the Atal Pension Yojana
(APY):
1. All citizen of India between
the age of 18 to 40 years.
2. The applicant must have a
valid savings bank account / open a savings bank account.
3. Aadhaar will be the
primary KYC but it is not mandatory to provide Aadhaar number for opening an
APY account.
4. Aadhaar and mobile number
are recommended to be obtained from subscribers at the time of opening the APY
account. If not available at the time of registration, Aadhaar details may also
be submitted at a later stage.
5. The minimum contribution
that anyone has to do is at least 20 years.
How to open Atal Pension Yojana (APY) Account?
Follow the below-given steps
to open Atal Pension Yojana (APY) account
1. All nationalized banks
provide Atal Pension Yojana (APY). Go to the bank branch where you have your
savings bank account.
2. Fill the Atal Pension
Yojana (APY) registration form and submit it to your bank.
3. Provide your Aadhaar /
Mobile Number.
4. Ensure to keep the
required balance in your savings bank account for the transfer of monthly
contribution.
5. Some banks are also
offering to enroll for APY through net banking facility.
Nomination in Atal Pension Yojana (APY)
It is mandatory to provide
nominee details in Atal Pension Yojana Account. The spouse details are also
compulsory wherever applicable. Their Aadhaar number is also to be provided.
Mode of contribution to Atal Pension Yojana (APY) Account
Contributions are to be
remitted monthly through auto-debit facility from your savings bank account.
The due date for monthly contribution will be as per the initial date of
deposit of contribution into APY account.
Benefits of Atal Pension Yojana (APY)
1. Under APY, there is a
guaranteed monthly pension ranging from Rs 1000 to 5000 per month to the
subscriber on attaining the age of 60 years, until the death of the subscriber.
2. After the death of the
subscriber, the spouse shall be entitled to get the same amount of pension
until the death of the spouse.
3. After the death of the
subscriber and his/her spouse, the nominee will receive the entire pension
money that the subscriber had accumulated till 60 years of age.
4. If the subscriber dies
before 60 years, the spouse will have the choice to either exit from the scheme
and claim the entire accumulated money or continue to maintain the account in
subscriber's name for the remaining vested years. The spouse shall be entitled
to receive the same amount of pension as the subscriber until the death of the
spouse in the latter case.
Monthly Contribution in Atal Pension Yojana (APY)
Atal Pension Yojana is a
periodic contribution based pension scheme. There is a guaranteed monthly
pension ranging from Rs. 1000 to 5000 per month to the subscriber after their
retirement at the age of 60. Your monthly contribution depends upon the amount
of monthly pension you want and the age when you start your contribution.
Indicative APY Contribution
Chart (Age-wise)
Penalty Charges in Atal Pension Yojana (APY)
Non-availability of the
required balance in your savings bank account for the contribution in APY on
the specified date will be considered as default. Banks can levy penalty
charges for delayed payments as stipulated by the Government. Such penalty
charges will vary from minimum Re 1 per month to Rs 10/- per month as shown
below:
1. Re. 1 per month for a contribution
up to Rs. 100 per month.
2. Re. 2 per month for
contribution between Rs. 101 to 500/- per month.
3. Re 5 per month for
contribution between Rs 501/- to 1000/- per month.
4. Rs 10 per month for
contribution beyond Rs 1001/- per month.
In the case of
discontinuation of payments of contribution shall lead to the following:
1. After 6 months the subscriber’s
account will be frozen.
2. After 12 months the subscriber’s
account will be deactivated.
3. After 24 months
subscriber’s account will be closed.
Subscriber should ensure
that the savings bank account to be funded enough for auto debit of
contribution money. The amount of penalty will remain as part of the pension
corpus of the subscriber.
Exit from Atal Pension Yojana (APY)?
1. Exit on attaining the age
of 60 years: Exit from APY is permitted with 100% annuitisation of pension
wealth. Monthly pension of Rs 1000 to 5000 per month to the subscriber, until
the death of the subscriber.
After the death of the subscriber, the spouse shall be entitled to get the same amount of pension until the death of the spouse.
After the death of the subscriber and his/her spouse, the nominee will receive the entire pension money that the subscriber had accumulated till 60 years of age.
After the death of the subscriber, the spouse shall be entitled to get the same amount of pension until the death of the spouse.
After the death of the subscriber and his/her spouse, the nominee will receive the entire pension money that the subscriber had accumulated till 60 years of age.
2. Exit Before attaining the
age of 60 Years: Exit from APY before 60 years of age is not permitted.
However, it is permitted only in exceptional circumstances i.e. in the event of
the death of subscriber or terminal disease.
Also read: Pradhan Mantri Suraksha Bima Yojana (PMSBY)
Also read: What is NPS (National Pension System)?
Also read: Benefits of investing in mutual funds
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