The Atal Pension Yojana is a pension program that aims to provide a reliable source of income to unprivileged working people after retirement.
Necessary Information about Atal Pension Yojana
- Maximum pension: Rs. 5,000
- Age Limit: 18 to 40 years
- Contribution Period: 20 years minimum
- Retirement Age: 60
The Indian government introduced the Atal Pension Yojana (APY) program in the budget for 2015–2016 to assist those who work in the unorganised sector.
- It aids in providing a pension of up to Rs. 5,000 each month.
- It offers benefits from taxes.
- The Indian government also contributes to the programme.
- Risk-free pension scheme
The Atal Pension Yojana scheme motivates people to save for their retirement. The Pension Fund Regulatory and Development Authority looks at all scheme operations (PFRDA).
Objectives of Atal Pension Yojana
The ultimate objective of the Atal Pension Yojana scheme is as follows:
- It focuses on providing protection and security to citizens from accidents, diseases, and other harm.
- This scheme is primarily intended for the nation’s unorganised sector.
How to Download the APY Form
You can select any of these methods to access the Atal Pension Yojana (APY) account opening form:
- The form is available at any participant bank’s nearest branch office.
- You can easily download and print the scheme form from the official webpage of the participating banks.
- You may download the APY account opening form from the official Pension Fund Regulatory and Development Authority’s (PFRDA) website.
Process to Apply for the Atal Pension Yojana
Those people who are planning to apply for this scheme must adopt the following process:
- The APY scheme is open at all nationalised banks. Individuals can open an APY account by going to any of these banks.
- Individuals can also easily download the application form from the official bank websites.
- The application form is available in multiple languages; Hindi, English, Gujarati, Telugu, Odia, Tamil, Odia, Marathi, Bangla, and Kannada.
- The individuals must complete and submit the APY scheme application form at the bank.
- Individuals are required to submit a working cell phone number.
- You must give a photocopy of your Aadhaar card.
- Once your application is approved, you’ll get a message notification on your registered mobile number.
How to Fill the Atal Pension Yojana Form?
Once you have obtained the form, the next step is filling in the required details.
The Atal Pension Yojana Scheme form is quite easy. All you need to do is;
- Step 1: Addressing the form
- Step 2: Bank Information
- Step 3: Personal Information
- Step 4: Pension Information
- Step 5: Declaration and Authorisation
- Step 6: The bank will complete this step.
What Is the Investment Plan for the Atal Pension Yojana (APY)?
The returns on Atal Pension Yojana’s (APY) are assured. The following are the investment categories in which your money is placed:
|Quantum of Investment
|45% to 50%
|Term deposits of banks and debt securities
|35% to 45%
|Equity and equity-related instruments
|5% to 15%
|Asset-Backed Securities and so on
|Up to 5%
|Money Market Instruments
|Up to 5%
Contributions towards the Atal Pension Yojana
The two main variables that determine your monthly contribution to the Atal Pension Yojana are:
- The monthly pension you expect to receive and;
- Your age when you first enrol in the scheme.
Thus, each individual has to make different contributions to receive their desired amount of pension.
Atal Pension Yojana Withdrawal Procedure
Although initially, you could not withdraw from this scheme before turning 60, the Atal Pension Yojana withdrawal process has been slightly changed:
- You have an option to leave this scheme with a full annuitisation of your pension if you are 60 years old or older. To apply for your pension, you must go to the bank.
- Only extraordinary situations, such as a terminal illness or death, will allow you to leave the programme before turning 60. Your partner will receive your pension if you pass away before turning 60. Your designee would pay the pension if you and your spouse passed away.
Atal Pension Yojana Penalty Charges
You need to pay the following (APY) penalty costs for late payments monthly:
- There will be a Re. 1 penalty if you contribute up to Rs. 100 monthly.
- A penalty of Rs. 2 would be assessed if you contribute between Rs. 101 and Rs. 500 monthly.
- A penalty of Rs. 5 would be assessed if you contribute between Rs. 500 and Rs. 1,000 monthly
- Similarly, a penalty of Rs. 10 would be assessed if you contribute over Rs. 1,001 monthly.
- Thus, the APY pension amount is calculated by your contributions to the scheme.
The following points are applicable if payments are stopped:
- The account will be suspended if no payments are made for six months.
- The account will be deleted if there aren’t any payments made for a year.
- The APY account will be cancelled if payments are overdue for 24 months.
Atal Pension Yojana Eligibility
The following is a list of individuals who are eligible for the Atal Pension Yojana:
- You must be a citizen of India.
- You must be aged between 18 to 40 years.
- You must have an operating mobile phone number.
- Your Aadhaar number must be connected to an active bank account number.
- Submit your “Know Your Customer” details with the bank.
- You shouldn’t have an existing APY account.
Features & Benefits of the Atal Pension Yojana
The following is a list of the key features and benefits of the APY scheme:
- The Indian government assures that the scheme will pay every individual a minimum pension amount on their retirement.
- Under Section 80CCD, individuals are entitled to Atal Pension Yojana tax benefits for their contributions to the pension scheme.
- Anyone with a bank account is qualified to participate in the APY programme.
- Once an individual turns 60, they will start receiving a pension.
- Employees in the private sector who do not receive pension benefits are also eligible to apply for the Atal Pension Yojana programme.
- Once you turn 60, you can choose to receive a fixed pension of Rs. 1,000, Rs. 2,000, Rs. 3,000, Rs. 4,000, or Rs. 5,000.
- If you pass away while the plan is in effect, your spouse may either claim the contributions or has an option to continue your term plan.
FAQs on the Atal Pension Yojana
1. What steps should I take to open an Atal Pension Yojana account?
First, register by completing the Atal Pension Yojana form. Submit your cell phone number and your Aadhaar number. Afterwards, hand in the APY form to the bank and set up automatic withdrawals from your account. Make sure your account has minimum money in it for frequent contributions.
2. Is submitting your Aadhaar number mandatory to register for this pension scheme?
Although it is not necessary, the Aadhaar card will serve as the primary KYC document banks need to identify recipients, nominees, and the user’s spouse.
3. I don't have a savings account; can I still open an Atal Pension Yojana account?
No, having a savings bank account is a requirement for applicants to this programme.
Recent Updated About Atal Pension Yojana
Centre announces change in Atal Pension Yojana
The Central department has significantly altered the Atal Pension Yojana scheme, declaring that income taxpayers will no longer be qualified for the scheme as of 1 October 2022. The amendment states that the APY account would be cancelled, and the subscriber’s accrued pension amount would be repaid if a subscriber who registered on or after 1 October 2022 is later found to have paid income taxes on or before the date of application.
New updates announced in APY and NPS schemes
The government of India has allowed the National Pension Scheme (NPS) and Atal Pension Yojana (APY) participants to pay their premiums through UPI (Unified Payment Interface). These new regulations will be applicable from 1 October 2022. Before this, subscribers could pay their premiums through NEFT, IMPS, or RTGS. The APY/NPS premium will be considered the same day if paid before 9:30 AM. However, if you make a payment after 9:30 AM, the payment will be considered for the next day.
New rule announced for Atal Pension Yojana
The new regulation for the Atal Pension Yojana (APY) has been released by the Ministry of Finance and will take effect on 1 October 2022. The amendment states that if a subscriber who joined on or after 1 October 2022 is later discovered to be a taxpayer, their APY account will be terminated. The subscriber will get the pension that has accrued until that time.
As per PFRDA Chairman, there were 5.33 crore subscribers to the APS and National Pension Scheme (NPS) as of 4 June 2022.
APY scheme crosses the 4 crore mark on total enrollment
According to individual contributions, the Atal Income Yojana (APY) scheme entitles subscribers aged 60 or above to a minimum guaranteed pension of Rs. 1000 and Rs. 5000 per month. During the fiscal year 2021–2022, over 99 lakh APY accounts were created. Until March 2022, 4.01 crore APY accounts had been opened. All this was possible because of the active participation of different banks. Public-sector banks completed 71% of all enrollments, regional rural banks completed 19%, private-sector banks completed 6%, and small finance banks completed 3%.
APY crosses 3 crore subscribers during FY21
The Pension Fund Regulatory and Development Authority (PFRDA) reported that during FY 2020–21, over 79 lakh people joined the Atal Pension Yojana (APY).
State Bank of India introduced 22.07 lakh customers out of the 79.14 lakh subscribers that used the APY plan in FY 2020–21. While lenders like Bank of Baroda, Axis Bank, Airtel Payment Bank, Bank of India, Central Bank of India, HDFC Bank, Union Bank of India, Baroda UP Bank, Punjab National Bank, Indian Overseas Bank, and Aryavart Bank added new APY subscribers between 1 and 5 lakh for FY 2020–21, Canara Bank and Indian Bank added 5.89 lakh and 5.17 lakh subscribers, respectively, during the same timeframe.
Govt list out steps to increase enrolment under Atal Pension Yojana
To encourage enrollment in the Atal Pension Yojana, the Central Government of India has announced several measures (APY). Some of the steps taken up by the government of India to enhance enrollment in APY, as stated by Anurag Singh Thakur, Union Minister of State for Finance & Corporate Affairs, are as follows:
The pensioner can now choose between monthly, quarterly, or half-yearly contributions.
- Now, during the fiscal year, subscribers have the choice to increase or decrease the Pension amount as they see suitable. However, you may only use this facility once per fiscal year.
- Individuals can use the official mobile app to access APY accounts. You can use the app to access additional services as well.
- Subscribers to APY can now join the pension scheme in a unique paperless manner without using the net banking facility.
- APY subscribers or individuals will now have access to a Grievance Module in case of a complaint.
15 lakh new subscribers enrolled via SBI in 9 months
According to a PTI report, in 2020-2021, more than 15 lakh new subscribers or individuals joined the Atal Pension Yojana (APY) via the State Bank of India (SBI).
Sources from the Pension Fund Regulatory and Development Authority (PFRDA) show that up until the end of 2020, more than 52 lakh new subscribers joined this pension plan. Enrollments have now surpassed 2.75 crores overall.
Despite the coronavirus pandemic, APY, a government-sponsored pension plan, has experienced a significant number of enrollments.