PFRDA proposes to introduce Instant Bank Account Verification for orderly processing of their exit requests.
Atal Pension Yojana (APY) subscribers who wish to exit from the scheme should make sure their savings bank account is still operative through which the contributions were being made. This will keep the withdrawal process smooth and timely credit of money will happen in the bank account.
PFRDA has recently brought about changes in Premature Exit Processing of APY for the benefit of Subscribers by proposing to introduce Instant Bank Account Verification in the interest of Subscribers for orderly processing of their exit requests.
The guidelines will facilitate timely transfer of withdrawal amount in the Bank Account of APY Subscribers and also as an additional due diligence to protect their corpus lying in the Permanent Retirement Account Number (PRAN).
“Instant Bank Account verification by penny drop” shall also be undertaken by CRA to verify the operative status of SB Account as part of enhanced due diligence including the name matching between PRAN and Bank Account Number. This will help to keep the process smooth at the time of premature withdrawal requests where the associated SB Account is operative so as to ensure receipt of APY account closure proceeds in the SB account.
For closing APY account, one needs to apply in the prescribed form with the bank where the savings account is held. The voluntary exit from APY can be done anytime before the age of 60 and the refund will come to one’s savings account. Instead of closing APY, if hard-pressed for funds, it’s better to delay contributions. Stopping APY contributions will not deactivate the account and later on, one can regularize APY account by paying a penalty of Rs 1 per month for the contribution of every Rs 100.
If the associated SB Account is closed/dormant, the modified process ensures preservation of Subscribers contribution in the PRAN itself to generate optimum market based returns.
If the SB account details at the time on-boarding and exit are not same, different Account Number of same Bank or the different Bank, the APY SPs are advised that the APY closure proceeds are credited to the same Bank Account number and may accept the request with different Account number or account of a different Bank only as an exception. Such requests are to be accompanied by proof of Alternate Account Number acceptable to the Bank.
It is better for the APY subscriber to keep their respective Bank account active when they submit their premature withdrawal request, till their request for premature withdrawal request is processed.
Atal Pension Yojana (APY) is the flagship Social Security Scheme of Government of India administered by PFRDA through Banks and Dept of Post. The scheme offers Guaranteed Pension Benefits to the eligible Indian Citizens after reaching the age of 60 years, who subscribe and contribute to the scheme.