What is Atal Pension Yojana?
The Atal Pension Yojana is aimed at people who want to save a small amount of money for a fixed pension once they retire. Check out the details in our video.
A Pension provides people with a monthly income. It is the income that you get when you are no longer earning after retirement. The Atal Pension Yojana is aimed at people who want to save a small amount of money for a fixed pension once they retire. Under the APY, guaranteed pension will be given at the age of 60 years depending on the contributions by the subscribers.
The Government of India also co-contributes 50% of some subscriber’s contribution or Rs. 1000 per year, whichever is lower at the end of the financial year. Everyone is not entitled to the GOI contribution. GOI co-contributes for a period of 5 years.
Those who are not eligible are the ones who are covered under other pension plans like Employees’ Provident Fund (EPF). The Coal Mines Provident Fund, Assam Tea Plantation Provident Fund, Seamens’ Provident Fund Act, Jammu Kashmir Employees’ Provident Fund etc.
Who can subscribe to APY?
Any Citizen of India can join the APY scheme.
The age of the subscriber should be between 18 - 40 years.
He / She should have a savings bank account or a post office savings bank account
Each applicant must have a mobile number that he has to register at the time of application
A subscriber can open only one APY account and it is unique.
Subscriber Enrolment Payment method?
Consumers can use the auto-debit facility to make half-yearly, quarterly, and monthly payments.
The contribution depends upon the desired monthly pension and the age of the subscriber at entry. (See table)
Example: Subscribers joining at 18 years of age must contribute Rs 42 or Rs 210 monthly to get a minimum guaranteed monthly pension of Rs 1000 or Rs 5000, respectively.
How much pension will be received under APY?
Minimum guaranteed monthly pension between Rs 1,000/- to 5,000/- per month will be given from the age of 60 years onwards depending on the contributions by the subscribers.
What is the procedure for opening an APY Account?
(i) Approach the bank branch/post office where an individual's savings bank account is held or open a savings account if the subscriber doesn’t have one.
(ii) Provide the Bank A/c number/ Post office savings bank account number and with the help of the Bank staff, fill up the APY registration form.
What will happen if a required amount is not maintained in the bank account for contribution on the due date?
If there is inadequate balance in the bank account it will be treated as a default and contribution will have to be paid in the subsequent month along with overdue interest for delayed contributions.
If you delay the payment of the contribution, then the below-mentioned penalties are charged:
Banks are required to collect Rs. 1 per month for contributions of every Rs. 100.
What will happen to the APY account in case of continuous default?
Deduction would be made in the subscribers account. Once the account balance in the subscriber’s account becomes zero due to deduction of account maintenance charges, fees and overdue interest, the account would be closed immediately.
For those subscribers, who have availed Government co-contribution, the account would be treated as becoming zero In this case, the Government co-contribution would be given back to the Government.
What is the withdrawal procedure from APY?
In case of death of the Subscriber due to any cause, it would be available to the spouse and on the death of both of them (subscriber and spouse), the pension would be given to his nominee.
