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Atal Pension Yojana (APY) – APY Online Scheme, Benefits, Eligibility

The Government of India is concerned about the people working in the unorganised sector and it has decided that if the poor working men retire they can get the security that they will not come under any financial crisis for a basic necessity. As a result, the government of India has announced a scheme named ‘Atal Pension Yojana’ listed in April 2015-16 budget. The main focus of this scheme is to uplift the people working in the Unorganised Sector. This scheme is headed by the PFRDA {Pension Fund Regulatory and Development Authority} through NPS architecture.

Some highlights of Atal Pension Yojana

  • This pension scheme guarantees that its subscriber will get an amount ranging from Rs.1000 to Rs.5000 per month.
  • All the bank holders may join APY.

Atal Pension Scheme Details

Check below the details of Atal Pension Yojana Scheme:

Closure

At the time of retirement, the pension will be provided to the subscriber. If in the case the subscriber is found dead due to any cause then the spouse will get the fund but in the case both the wife and husband are dead then the pension will be given to the nominee. A subscriber can only exit before 60 years in the case of extreme circumstances. Those are: in the event of death or terminal diseases.

Eligibility

If you fulfill these details listed then you are eligible for the Atal Pension Yojana-

  • Should be a citizen of India
  • Should have a valid Bank account
  • Should be between 18 to 40 years of age
  • Should contribute to the scheme for at least 20 years
  • Should not be enrolled in any social welfare scheme.

Enrollment Details in Atal Pension Yojana

Gender wise enrollment

APY Enrollment Gender-Wise

Out of 100%, 56.84% males and 43.14% females are enrolled in Atal pension Yojana { recorded on 31/03/2020}.

Age-wise Enrollment {recorded on 31/03/2020}

 In percentage –

APY Age-wise Enrollment in Percentage

In numbers –

Age Group {In years} In Numbers Out of Total
18-20 32,15,107
21-25 59,76,402
26-30 57,12,028
31-35 46,42,280
above 35 27,55,841

Pension Amount Wise enrollment {recorded on 31/03/2020}

Also Read -   PMJDY Application Form

In percentage –

Pension Amount-wise Enrollment

In numbers –

Amount in Rupees In Numbers Out of Total
1000 1,62,45,708
2000 12,50,195
3000 6,33,896
4000 2,52,879
5000 39,18,980

Bank Wise Enrollment {recorded on 31/03/2020}

In percentage –

Bank Wise Enrollment

In numbers –

Banks In Numbers Out of Total
public sector banks 1,56,75,442
private banks 15,62,997
small finance banks 15,760
payment bank 3,44,001
regional rural banks 43,30,190
district CO-OP bank 48,581
state CO-OP banks 4,620
Urban CO-OP banks 17,355
DOP 3,02,712

Atal Pension Yojana Benefits

The main benefits of Atal Pension Yojana are below:

1. Source of income after retirement

The people enrolled in Atal pension Yojana gets a steady income after reaching 60 years of age. This enables them to meet their needs like medications, food, etc.

2. Pension scheme backed by the government

The Pension is risk-free as it is backed by the Government and regulated by Pension Fund Regulatory Authority (PFRDA)

3. Supporting the employees of unorganised sectors

Usually, the employees working under unorganised sectors faced issues in meeting their needs in their later years. Atal Pension Yojana is a boon for these people.

4. Facility of nominee

There is a facility In case of death of the beneficiary, Spouse can continue getting the pension or can terminate the account. In case of death of both beneficiary and spouse, Nominee will receive the amount. 

Features of Atal Pension Yojana

The main features of Atal Pension Yojana are below:

1. Automatic Debit

The account of the beneficiary is directly debited. The beneficiary should ensure to maintain the amount of their account to meet this auto-debit.

2. Contribution can be increased

The beneficiary is free to increase or decrease the monthly contribution. The corpus amount will be changed accordingly.

3. Guaranteed Pension

The beneficiary will receive the monthly pension of Rs.1000, Rs.2000, Rs.3000, Rs.4000, and Rs.5000 according to their monthly contributions.

4. Age Restrictions

Individuals can start their contribution from 18 years of age and the maximum age to decide the contribution is 40 years. Minimum 20 years of contribution is a must.

5. Withdrawal Policies

After attaining the age of 60 years, the beneficiary will receive the monthly pension. In case of death or illness, the beneficiary can exit the scheme before the age of 60 years. In case if the beneficiary is dead before 60 years of age, the spouse will be entitled to receive the amount or exit the scheme. If the beneficiary wants to withdrawal the amount before 60 years of age, only the cumulative contributions and earned interest will be refunded.

6. Penalty

Also Read -   EPF Schemes

If the payment gets delayed the Bank is required to collect an additional amount of money. This extra money will range from Rs. 1 to Rs. 10.

APY Chart for Penalty charges for different contributions listed

Charges Contributions
Rs.1 up to Rs. 100 per month
Rs.2 up to Rs. 101 to Rs. 500 per month
Rs.5 up to Rs. 501 to Rs. 1000 per month
Rs.10 beyond Rs. 1001 per month
  • If the payment of contribution is discontinued for more than 6 months than the account will be frozen. 
  • If the payment of contribution is discontinued for more than 12 months than the account will be deactivated.
  • If the payment of contribution is discontinued for more than 24 months than the account will be closed.

7. Tax Exemptions

Under section 80CCD of the income tax Act, 1961, the monthly contribution amount is exempted from tax. An additional tax exemption of Rs, 50,000 for contribution to APY is allowed. 

Monthly Contributions Under Atal Pension Yojana Chart

Entry age No. of years of contribution Monthly contribution (Monthly Pension – Rs.1000, Indicative Return of Corpus- Rs.1.7 lac) Monthly contribution (Monthly Pension – Rs.2000, Indicative Return of Corpus- Rs.3.4 lacs) Monthly contribution (Monthly Pension – Rs.3000, Indicative Return of Corpus- Rs.5.1 lacs) Monthly contribution (Monthly Pension – Rs.4000, Indicative Return of Corpus- Rs.6.8 lacs) Monthly contribution (Monthly Pension – Rs.5000, Indicative Return of Corpus- Rs.8.5 lacs)
18 40 42 84 126 167 210
19 41 46 92 138 183 228
20 40 50 100 150 198 248
21 39 54 108 162 215 269
22 38 59 117 177 234 292
23 37 64 127 192 254 318
24 36 70 139 208 277 346
25 35 76 151 226 301 376
26 34 82 164 246 327 409
27 33 90 178 268 356 446
28 32 97 194 292 388 485
29 31 106 212 318 423 529
30 30 116 231 347 462 577
31 29 126 252 379 504 630
32 28 138 276 414 551 689
33 27 151 302 453 602 752
34 26 165 330 495 659 824
35 25 181 362 543 722 902
36 24 198 396 594 792 990
37 23 218 436 654 870 1087
38 22 240 480 720 957 1196
39 21 264 528 792 1054 1318

How to Apply for Atal Pension Yojana (APY)?

Interested peoples can apply for Atal Pension scheme in any bank if he/she meets the eligibility criteria. Follow the following steps to apply for the Atal pension scheme:

  1. Visit the bank where you have an account.
  2. Ask for the APY subscribe form and fill it properly.
  3. Submit the filled application form with 2 passport size photos and Aadhar card Xerox. 
  4. An active phone number is required. 

The same steps can be followed for downloading the application form for Atal Pension Yojana online.

Terms and Conditions for Atal Pension Scheme

  1. All the saving bank account holders are eligible for the Atal Pension Yojana. 
  2. The central government will also contribute 50% of the total contribution amount or Rs.1000 per year (the lower one will be given preference) for each subscriber for 5 years.
  3. The monthly contribution will be deducted from the subscriber’s account on an auto-debit basis.  

Frequently Asked Questions

Q1. Who are the people not eligible for Government’s contribution under APY?
Ans. The Subscribers who are already covered under Statutory social schemes will not receive the government’s contribution. The schemes are as follow:

  1. Employees provident fund & Miscellaneous provision Act, 1952
  2. The coal mines provident fund & Miscellaneous provision Act, 1948
  3. Assam tea plantation & Miscellaneous provision Act, 1955
  4. Seamen’s Provident fund Act, 1966
  5. Jammu Kashmir employees provident fund & Miscellaneous provision Act, 1961
  6. Another statutory social security scheme

Q2. Is an Aadhaar card necessary for opening an APY account?
Ans. No, for opening the APY account aadhaar card is not necessary but it is an important document for enrollment.

Q3. Is it important that I must have a savings account for joining the APY?
Ans. No.

Q4. What is the payment mode of the contribution?
Ans. Monthly contributions will be deducted from your savings account automatically.

Q5. Can I join APY without mentioning any nominee?
Ans. Details of the nominee are an important part of the APY form.

Q6. How can I check the contribution status of my APY account?
Ans. You can check the status of the contribution using your registered number. You will get the regular notification on the registered mobile number via SMS.

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