PFRDA to stop auto-debiting savings account of the subscribers for APY contribution till 30th June 2020.
The Pension Fund Regulatory and Development Authority (PFRDA) has stopped the auto-debit facility for Atal Pension Yojana (APY). This means the savings account of the investors will not get debited for the APY contribution. Such stoppage of auto-debit for APY contributions will continue till 30th June 2020. So, if you are looking for APY closure online, this PFRDA’s relief measure could be of help.
PFRDA in its circular states that the outbreak of COVID-19 pandemic has adversely impacted all the sections of the society, especially the disadvantaged and the poor section who are most vulnerable to the economic effects of the Coronavirus. Even after the lockdown ends, it may be difficult for them to keep contributing to the scheme regularly during such period.
Therefore, it has been decided by PFRDA to stop auto-debiting savings account of the subscribers for APY contribution till 30th June 2020. The APY contributions are being made on a monthly or quarterly basis.
Importantly, PFRDA has informed that no penal interest will be charged to the APY subscribers if they regularize their APY accounts by depositing such non-deducted APY contributions along with regular APY contributions between 1st July, 20th and 30th Sept, 20.
It should, however, be noted that the contributions not made in APY till June 30 will have to made between July 1 and September 30, along with the respective contributions of those months.
For a delay in making the contribution, there is a penalty towards delayed payment. For the contribution of Rs 100 or part thereof, the penalty on delayed payment is Rs. 1 per month for each delayed monthly payment in APY scheme.
By paying the overdue amount along with the penalty amount, the subscriber, in case of default in payment of contribution can regularise the APY account. Only once the APY account is regularised, the pension becomes guaranteed under the scheme.
However, as per the latest PFRDA circular on APY, there will not be any such penalty for subscriptions that remain unpaid till June 30.
APY pension scheme is available to anyone between 18 and 40 years of age but they need to have a bank account as the contribution can only be made through auto-debit from their accounts. Depending on the age and the amount of pension needed, the subscription amount varies. APY provides the benefit of a fixed pension of Rs 1,000 to Rs 5,000 for the lifetime to the subscriber.