Atal Pension Yojana (APY) is the government scheme launched in the year 2015 by the Indian government. It is regulated by the Pension Funds Regulatory Authority of India (PFRDA) and it is an assured pension scheme. It provides the monthly pension after the age of 60 years. Also, it provides the financial security and independence to the contributor after their retirement.
This Atal Pension Yojana scheme is specially designed to the unorganized workers like daily wagers, drivers, gardeners, delivery person and household workers who don’t have access to any pension formality.
Also, people who work in private sectors but has no access to pension scheme can make this contribution.
Previously, Government supported the pension scheme NPS Swavalambam scheme. Now, the Indian government replaced this scheme to Atal pension Yojana. The NPS Swavalambam scheme contributor will automatically transferred to Atal Pension Yojana scheme.
Under this scheme, the person needs to contribute the fixed amount for certain years. After reaching the age of 60 years, the contributor will receive the pension monthly.
Based on the contributed amount and age, the monthly pension will be calculated i.e., Rs.1000, Rs.2000, Rs.3000, Rs.4000 or Rs.5000.
Benefits for Atal Pension Yojana:
Guaranteed Pension:
The contributor gets the guaranteed pension ranging Rs.1000 to Rs.5000 monthly based on their contribution made.
Auto debit for Atal Pension Yojana:
The pension contribution will be automatically debited from the savings bank account of the subscriber. This ensures and reduces the chances of missing the payouts. In case of failure, a penalty is subject to pay.
Tax Benefits:
Under the section 80CCD (1) of the income tax act, tax exemption is available. Tax exemption up to the limit of Rs.1,50,000.
Withdraw/Exit for for Atal Pension Yojana:
The contributor can exit the scheme to withdraw the amount only before he/she attains the age of 60 years that to on certain circumstances like illness or death.
In case of beneficiary’s death, his/her spouse can either exit the scheme to receive the corpus amount or can continue to receive the pension amount monthly.
If the person is above 60 years, you can reach out to the invested bank to avail the full corpus.
Voluntary exit before 60 years:
The subscriber will get the full contributed amount but Account maintenance charges will be deducted.
Change the Pension payout:
The government provides an opportunity to either increase or decrease the contribution once a year. The beneficiary can change the contribution amount and make use of the opportunity.
As I have said earlier, the monthly pension payout is based on the contribution made. Increasing and decreasing the contribution will definitely reflect in the pension you get after the age of 60 years.
On decreasing the contribution, the difference amount is paid back to the savings account. Also, on increasing the penalty of Rs.25 is applied.
Term of contribution:
The subscriber can contribute their pension monthly, quarterly or half-yearly.
Nominee:
Due to the death of beneficiary, the nominee whom he/she assigned during the entry of the scheme can avail the benefits.
Eligibility:
Applicant must be an Indian Citizen
Also, he/she should be the age between 18 to 40 years.
He/she must have a bank account.
Moreover, the applicant must have a mobile number.
Also, they must have contributed at least for 20 years. That is why the maximum age for the contribution is 40.
Penalty:
In case, if beneficiary failed to pay monthly installments, then penalty is imposed.
If monthly contribution is up to Rs.100, then the penalty is Rs.1
For monthly contribution between Rs.101 to Rs.500, then the penalty is Rs.2
Also, for monthly contribution between Rs.501 to Rs.1000, then the penalty is Rs.5
Moreover, if monthly contribution is above Rs.1001, then the penalty is Rs.10
If the contributor failed to pay for 6 months, the APY account will freeze. Deactivation of the account after 12 months incase of non payment. Also, if not paid for 24 months, auto closure of the APY account.
Documents Required for Atal Pension Yojana:
Proof of identity like Aadhar card, PAN Card, voter card, driving license or Passport.
Address proof like Aadhar card, Voter card, Ration Card, Bank statement
Proof of Date of Birth like Birth certificate, SSLC certificate, Passport, PAN Card, Aadhaar card.
Bank Passbook.
Application Process:
Offline:
- Firstly, visit the bank or post office in which you hold saving account.
- Avail the APY enrolment form and fill out all the required details such as name, DOB, Mobile number, Aadhar number, bank account number, pension amount, and nomination details.
- Also, submit the form along with photocopy of documents to the officer.
- Officer will provide the acknowledgment slip.
- After the verification, you will receive the confirmation message to your registered mobile number for the APY account opening.
Online application for Atal Pension Yojana:
- Firstly, log in to your internet banking app.
- Search for Atal pension Yojana scheme.
- Fill out all the details, and choose to auto debit the amount for every term until you reach the 60 years.
- You will receive the acknowledgement on successful completion of the registration.
- Also, only few banks have the online option to register for Atal pension yojana.
Banks offering for Atal Pension Yojana scheme:
SBI
HDFC
ICICI
Axis bank
Punjab National Bank
Canara Bank
Bank of Baroda
Due date:
The due date for the APY scheme is the initial date of payment on the first contribution. The Bank will auto debit the amount on the same date on every month.
Application form:
Download the application form of APY from the official Pension Fund Regulatory and Development Authority (PFRDA) Website
You can get the APY form in the official website of the bank, that you have savings account.
Also, you can visit the nearest bank that you have savings account and get the application form.
Conclusion:
The APY scheme is beneficial for the unorganized workers and also, to the people who works in private sector with no option for pension scheme.
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