Atal Pension Yojana is a pension scheme announced by the Government of India in the Budget of 2015-2016. The scheme is developed to provide for social and income security for the workers and unorganised sector of India.
The scheme encourages the unorganized sector to save for retirement with financial help from the Government of India. The scheme is administered by PFRDA (Pension Fund Regulatory and Development Authority)
Atal Pension Scheme Details
- Under Atal Pension Scheme there is a minimum guaranteed pension for its subscribers from Rs.1000 to Rs.5000 per month.
- Pension is guaranteed by the Government of India
- The Central Government would also co-contribute 50% of the total contribution or Rs. 1000 per annum, whichever is lower, to each eligible subscriber account.
- The Subscriber needs to invest until the age of 60 and will be eligible for a pension from the age of 60
Atal Pension Yojana Eligibility
- APY is applicable to all citizen of India aged between 18-40 years.
- A Bank A/c is required to join Atal Pension Scheme (Jan Dhan Yojana Bank A/c is Eligible for Atal Pension Scheme)
- Aadhar Card is Primary KYC Document. If Aadhar Card is not available at the time of registration it can also be submitted later.
Also Read – What is Pradhan Mantri Jan Dhan Yojana?
Atal Pension Scheme Form
To Enrol for APY you need to fill the form and submit to your Bank or Agencies as appointed by the Government of India.
- Bank Details – Enter your Bank Name, Bank Branch and Bank A/c Number.
- Personal Details – Enter Your Name, DOB, Email Id, Aadhar and Mobile Number. Enter Details of your Spouse and Nominee Name.
- Pension Details – You need to fill your frequency of Contribution and the Pension Amount you wish to receive.
- Declaration & Authorization – Finally you need to authorize your bank to deduct APY Contribution and Authorize for the same as well. Enter Date, Place and Sign the form.
To Download / Print Atal Pension Yojana Form Click Here.
Atal Pension Yojana Contribution Chart
Atal Pension Scheme Withdrawal Procedure
You are not allowed to withdraw your corpus before you attain the age of 60 years but you can withdraw in the following circumstances.
- The Subscriber has attained the age of 60 Years – Once the subscriber has attained the age of 60 years he is eligible for pension as decided before.
- Exit Before the age of 60 Years – If the subscriber dies before the age of 60 years, then the pension amount would be provided to the spouse. In Case both attain death the corpus would be returned to the nominee.
Atal Pension Scheme Penalty Charges
Banks are required to collect additional amount for delayed payments, such amount will vary from minimum Re 1 per month to Rs 10/- per month as shown below:
- Rs. 1 per month for contribution up to Rs. 100 per month.
- Rs. 2 per month for contribution up to Rs. 101 to 500/- per month
- Rs. 5 per month for contribution between Rs 501/- to 1000/- per month.
- Rs. 10 per month for contribution beyond Rs 1001/- per month.
The fixed amount of interest/penalty will remain as part of the pension corpus of the subscriber.
Atal Pension Yojana Penalty Benefits
- In case the subscriber passes away during the duration of the scheme, the spouse can either claim the contributions or complete the duration of the scheme.
- Contributions under APY are eligible for Tax Benefits u/s 80CCD of the Income Tax Act 1961.
- Private Sector employees who do not receive any pension benefits are eligible for APY.
- GOI guarantees pension to the subscriber after 60 years of age.
- All Bank A/c are eligible for APY.
FAQ’s for Atal Pension Scheme
What happens when you stop making payment in APY?
If there are no payments made for a duration of 6 months, the account will be frozen.
The account will be deactivated if there are no payments made for a duration of 12 months.
The APY account will be closed if payments are not made for a duration of 24 months.
Whether Aadhaar Number is compulsory for joining the scheme?
It is not mandatory to provide Aadhaar number for opening APY account. However, For enrolment, Aadhaar would be the primary KYC document for identification of beneficiaries, spouse and nominees to avoid pension rights and entitlement related disputes in the long-term.
What is the due date for monthly contribution?
The due date for monthly contribution will be as per the initial date of deposit of contribution into APY.
How many APY accounts I can open?
A subscriber can open only one APY account and it is unique.
Will there be any option to increase or decrease the monthly contribution for higher or lower pension amount?
The subscribers can opt to decrease or increase pension amount during the course of accumulation phase, as per the available monthly pension amounts. However, the switching option shall be provided once in year during the month of April.
How will I know the status of my contribution?
The status of contributions will be intimated to the registered mobile number of the subscriber by way of periodical SMS alerts. The Subscriber will also be receiving physical Statement of Account.