PM Narendra Modi-led government in the 2015-16 budget had announced an ambitious scheme – Atal Pension Yojana (APY). APY is a government-run scheme which is administered by the Pension Fund Regulatory and Development Authority (PFRDA) under the NPS (National Pension System). The scheme was launched in June 2015 keeping in view the pension requirement of individuals from the weaker section, which would immensely benefit them during their old age.
Eligibility:
– APY is open to all bank account holders. The Centre would contribute 50 per cent of the total contribution or Rs 1,000 per annum, whichever is lower, to each eligible subscriber account, for a period of five years.
– Aadhaar will be the primary KYC. Aadhar and mobile number are recommended to be obtained from subscribers for the ease of operation of the scheme. If not available at the time of registration, Aadhar details may also be submitted later stage.
Age of joining and contribution period:
The minimum age of joining Atal Pension Yojana scheme is 18 years and the maximum age is 40 years. The age of exit would be 60 years and it is after that the pension will start. Therefore, the minimum period of contribution by the subscriber under APY would be 20 years or more.
Another factor which would lead to an exit from the APY scheme is death of the subscriber. It means in case of death of the subscriber pension would be available to the spouse and on the death of both of them, the pension corpus would be returned to his nominee.
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:
• Re. 1 per month for contribution up to Rs. 100 per month.
• Re. 2 per month for contribution up to Rs. 101 to 500/- per month.
• Re 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.
Important information for subscriber:
Discontinuation of payments of contribution amount shall lead to following:
• After 6 months account will be frozen.
• After 12 months account will be deactivated.
• After 24 months account will be closed.
Subscriber should ensure that the Bank account to be funded enough for auto debit of the contribution amount.
Contribution Chart:
How do you apply for Atal Pension Yojana online?
The APY subscriber form is available online on all bank websites. Interested people need to download the form, fill in the required details and submit it to their banks. Other necessary documents also have to be submitted and applicants can then easily open an Atal Pension Yojana account.
Charges for default: Banks are required to collect an additional amount for delayed payments. Such amount will vary from minimum Re 1 per month to Rs 10 per month.
• Re. 1 per month for a contribution up to Rs. 100 per month.
• Re. 2 per month for a contribution up to Rs. 101 to 500/- per month.
• Re 5 per month for contribution between Rs 501/- to 1000/- per month.
• Rs 10 per month for contribution beyond Rs 1001/- per month.
Note: The fixed amount of interest/penalty will remain as part of the pension corpus of the subscriber.
If a person fails to do the payment of contribution amount for six months, his/her account will be frozen. After 12 months the account will be deactivated and after 24 months the account will be closed.
