Atal Pension Yojana Scheme
What is Atal Pension Yojana Scheme
This is scheme introduced by the central government where A Pension is provided to people when they are not working or retired. Atal Pension Yojana (APY), a pension scheme is for Indian citizen under which guaranteed pension of Rs. 1,000/- or 2,000/- or 3,000/- or 4,000 or 5,000/- per month will be given at the age of 60 years depending on the contributions.
Need for Pension:
- Decreased income earning potential with age.
- The rise of nuclear family-Migration of earning members.
- Rise in cost of living.
- Increased longevity.
- Assured monthly income ensures dignified life in old age
Who Can apply for Atal Pension Yojana Scheme
To avail benefits from the Atal Pension Yojana, you must fulfil the below requirements:
- Person need to Citizen of India
- Age limit between 18 – 40
- Need to make minimum 20 years contributions
- Need to have useable mobile contact number
- Person need to have valid KYC
Benefits of Atal Pension Yojana Scheme
Central Government introduced this scheme with a goal to ensure that covered people are protect for there month pension when they are no longer working. This scheme helps in illness , accidents etc. The Government would also make co contribution of 50% of total contribution or Rs 1000/- which ever is lower.
- Benefit of under tax saving section 80 CCD of Income Tax
- Guaranteed pension of Rs. 1000/- to Rs. 5000/- per month
- Pension to spouse if case of death of subscriber
- Pension to childers in case of death of subscriber or spouse of subscriber
- In case of death of the subscriber & the spouse both, then the pension corpus would be returned to the nominee.
How to Apply for Atal Pension yojana scheme
Follow is process to avail the benefits of APY
- All nationalized banks provide the scheme.
- Atal Pension Yojana forms are available online and at the bank. You can download the form from the official website.
- The forms are available in English, Hindi, Bangla, Gujarati, Kannada, Marathi, Odia, Tamil, and Telugu.
- Fill up the application form and submit it to your bank.
- Provide a valid mobile number, if you haven’t already provided to the bank.
- Submit a photocopy of your Aadhaar card.
Chart for Monthly Contributing
Facts need to know about Atal Pension yojana scheme
- As per your plan of monthly contributions banker will make auto debit to your account linked to the APYS
- Pension premium can be changes as per will of subscriber
- For non regular payment penalty of Rs. 1/- shall be levied
- Follow these steps to avail the benefits of APY
- Default > 6 months then account will be frozen
- Default > 12 months account will be closed and the remaining amount will be paid to the subscriber.
- Early withdrawal is not possible. Possible only in case of death of subscriber
FAQ on Atal Pension yojana scheme
Can I open APY Account without savings bank account?
The savings bank account/ post office savings bank account is mandatory for joining APY.
How much to contribute towards APY?
The monthly / quarterly / half yearly contribution depends upon the intended / desired monthly pension and the age of subscriber at entry
How many APY accounts I can open?
A subscriber can open only one APY account and it is unique. Multiple accounts are not permitted
How will I know the status of my contribution?
The periodical information to the subscribers regarding activation of PRAN, balance inthe account, contribution credits etc. will be intimated to APY subscribers by way of SMS alerts. The subscriber will also be receiving physical Statement of Account once a year.
What will happen if a subscriber becomes non-citizen of the country?
10 The scheme is open to the Indian citizens only. Hence, in that event the APY account will be closed and contribution will be returned to the subscriber as mentioned above in the case of voluntary exit before the age of 60 years