Atal Pension Yojana Canara Bank

Features of Canara Bank Atal Pension Yojana

1. Only one Atal Pension Yojana (APY) Scheme account can be opened by an individual.
2. It is mandatory to have a savings account in order to be able to apply for this scheme. If you do not have a savings account, you can open a Canara Bank Savings Account at any of its branches and then fill in the Atal Pension Yojana form and submit it.
3. The Savings account of the subscriber will be linked to the Atal Pension Yojana Scheme through ECS (Electronic Clearing Service) and payment will be deducted automatically on the due date.

1. The applicant must ensure that his/her Canara Bank Savings Account has enough funds in order to facilitate the monthly contribution to this scheme. If the applicant does not have sufficient funds in his/her account at the time of payment, a penalty will be charged.
2. Under this scheme, subscribers are assured of a minimum pension ranging between Rs. 1000 to Rs. 5000 per month, at the age of 60. This would depend on other factors such as amount of contribution made by the individual, time period, etc.
3. The monthly contribution amount can be any amount of the contributor's choice. If the contributor wishes to make alterations in the amount of money paid-out, then the changes can be made once a year, in April.

1. The minimum period during which a subscriber can make contributions to Atal Pension Yojana could be 20 years or more.
2. Under the Atal Pension Yojana Scheme, an account holder can opt out of the scheme once he/she attains the age of 60 and has accumulated 100% of his/her pension wealth. Upon opting out of this scheme, the Atal Pension Yojana Scheme account holder can start earning his/her pension.
3. Another context under which the Atal Pension Yojana account can be closed is in the event of death of the contributor. In this situation, the pension would be paid-out to the subscriber's spouse. In case both the account holder and spouse has passed away, the nominee gets the pension amount.
4. An account holder can also opt out from this scheme before attaining 60 years of age, under exceptional situations such as terminal disease, death of beneficiary, etc.
5. Another option available for closing an Atal Pension Yojana is when the beneficiary is ready to give up the government's contribution as well as the net interest accrued on his/her contribution.

Benefits of Canara Bank Atal Pension Yojana

Atal Pension Yojana (APY) offers a fixed pension for its contributors which ranges between Rs. 1000 to Rs. 5000 per month, provided that he/she joins the scheme and contributes towards it between the age of 18-40 years.

The contribution levels are affected by when the subscriber joins the scheme - if he joins early, the contribution will be low and if he joins late the contribution will be higher. Once he/she attains 60 years of age, he/she can avail lifelong benefit.

The contributions made by the subscribers under this Scheme is invested by the Government in the following investment options:

1. At least 45% and not more than 50% of the total fund is invested in Government Securities.
2. At least 35% and not more than 45% of the total fund is invested in Debt Securities and term deposits of banks.
3. Up to 5% of the total fund will be invested in Money Market Instruments.
4. At least 5% of the total fund (not exceeding 15%) will be invested in Equity and related instruments
5. Up to 5% of the total fund will be invested in Asset Backed Securities, etc.

Canara Bank Atal Pension Yojana Eligibility Criteria

Canara Bank Atal Pension Yojana is open to all canara bank account holders. The Central Government assures a 50% co-contribution or Rs. 1000 per annum, whichever is lower, towards each Atal Pension Yojana account, for every eligible subscriber account.

In order to be eligible for Canara Bank Atal Pension Yojana Scheme, the following parameters should be met:

1. Subscriber should be a citizen of India.
2. He/She must have a savings account scheme is associated banks like Canara Bank.
3. The minimum permissible age for entry is 18 years and the maximum age is 40 years.
4. Subscribers have to join the NPS scheme between the periods 1st June, 2015 - 31st December, 2015. The scheme will be available after this period, but the offer of Government co-contribution will be withdrawn.
5. They should not be members of any statutory social security scheme.
6. The contributor need not be an income taxpayer.