Numerous pension schemes are available in India, by means of both private and employer provided options. Millions of Indians are beneficiaries of a plethora of pension schemes to live a dignified life post retirement. More often than not, access to these pension schemes does not benefit the masses owing to multiple factors such as availability and accessibility. This drawback is mostly visible in unorganized sectors of the society where people have little access to social security post retirement. To bridge this gap, the Government of India (GOI) has come out with a pension scheme that aims to address the financial needs of the lower rung. Christened Atal Pension Yojana(APY), named after India’s former Prime Minister Shri. Atal Bihari Vajpayee, this pension program is one of its kind in the country.
Various government agencies and private institutions are engaged to provide seamless pension benefits to the members under the Atal Pension Yojana(APY), foreseen by Pension Fund Regulatory and Development Authority (PFRDA). State Bank of India (SBI) is the most recognized banking brand in India today with a network that spans across the length and breadth of the country. The bank is a registered aggregator under this scheme to provide pension services. One can walk into the designated branch to become a member of APY by filling up the form and providing supporting documents.
Overview of SBI Atal Pension Yojana
Based on the pension amount chosen, the enrolled person qualifies to get a monthly pension after the age of 60 years. The pension denomination amounts available are Rs.1,000, 2,000, 3,000, 4,000 and 5,000. To be eligible for this scheme, the enrollee is required to pay a fixed sum on a monthly basis into the fund until the age of 60 years. If the member dies during the pension period, their spouse continues receiving pension and the nominee receives the accrued corpus after death of the spouse. In order to fulfill national objectives of financial inclusion, the government will co contribute 50 percent of the members contribution or Rs.1,000 for a continuous period of 5 years to add monetary value to the corpus.
SBI lets you open an account under this scheme and operate it by letting you make monthly contributions to the fund from the account you hold with the bank. You can also receive monthly pension into your bank account with SBI once you become eligible to receive monthly payments from the government after the age of 60.
Features and Benefits of SBI Atal Pension Yojana
- Open to all Indian citizens between the age band of 18-40 years. Assuming a situation where the age of the subscriber is 40 years, at least 20 years of contribution from the user is required to be eligible for pension after 60 years.
- The subscriber has to pay a nominal amount per month which makes them eligible for a guaranteed monthly pension amount ranging from Rs.1,000 to Rs.5,000 to that helps in managing the financial obligations of life after retirement to a certain extent.
- The APY is available to non-taxpayers and persons who are not a member of any other social security scheme to ensure the objectives to provide pension to the labor class workers are met.
- Under SBI Atal Pension Yojana scheme, the subscriber is free to choose a pension amount of his choice on the basis of which the monthly contribution is determined.
- All existing members of the now defunct Swavalamban scheme will be migrated to the APY to ensure a single national pension scheme.
- The value of the fund is enhanced during the first five years since the government proactively contributes a significant amount to the corpus.
Refer to the table below to understand the estimated contribution per month at different ages.
|Age||Number of years you’re required to contribute||Pension of Rs.1,000 per month||Pension of Rs.2,000 per month||Pension of Rs.3,000 per month||Pension of Rs.4,000 per month||Pension of Rs.5,000 per month|
|18 years||42 years||Rs 42||Rs 84||Rs 126||Rs 168||Rs 210|
|19 years||41 years||Rs 46||Rs 92||Rs 138||Rs 183||Rs 228|
|20 years||40 years||Rs 50||Rs 100||Rs 150||Rs 198||Rs 248|
|21 years||39 years||Rs 54||Rs 108||Rs 162||Rs 215||Rs 269|
|22 years||38 years||Rs 59||Rs 117||Rs 177||Rs 234||Rs 292|
|23 years||37 years||Rs 64||Rs 127||Rs 192||Rs 254||Rs 318|
|24 years||36 years||Rs 70||Rs 139||Rs 208||Rs 277||Rs 346|
|25 years||35 years||Rs 76||Rs 151||Rs 226||Rs 301||Rs 376|
|26 years||34 years||Rs 82||Rs 164||Rs 246||Rs 327||Rs 409|
|27 years||33 years||Rs 90||Rs 178||Rs 268||Rs 356||Rs 446|
|28 years||32 years||Rs 97||Rs 194||Rs 292||Rs 388||Rs 485|
|29 years||31 years||Rs 106||Rs 212||Rs 318||Rs 423||Rs 529|
|30 years||30 years||Rs 116||Rs 231||Rs 347||Rs 462||Rs 577|
|31 years||29 years||Rs 126||Rs 252||Rs 379||Rs 504||Rs 630|
|32 years||28 years||Rs 138||Rs 276||Rs 414||Rs 551||Rs 689|
|33 years||27 years||Rs 151||Rs 302||Rs 453||Rs 602||Rs 752|
|34 years||26 years||Rs 165||Rs 330||Rs 495||Rs 659||Rs 824|
|35 years||25 years||Rs 181||Rs 362||Rs 543||Rs 722||Rs 902|
|36 years||24 years||Rs 198||Rs 396||Rs 594||Rs 792||Rs 990|
|37 years||23 years||Rs 218||Rs 436||Rs 654||Rs 870||Rs 1,087|
|38 years||22 years||Rs 240||Rs 480||Rs 720||Rs 957||Rs 1,196|
|39 years||21 years||Rs 264||Rs 528||Rs 792||Rs 1,054||Rs 1,318|
|40 years||20 years||Rs 291||Rs 582||Rs 873||Rs 1,164||Rs 1,454|
SBI Atal Pension Yojana Eligibility
- The applicant should be atleast 18 years old with an upper cap of 40 years.
- Should hold an active bank account with SBI to aid monthly transactions. The account should be KYC compliant.
Subscription to Atal Pension Yojana From SBI
To open a SBI Atal Pension Yojana Scheme, walk into the nearest branch of SBI and ask for the Subscriber Registration Form. By providing Atal Pension Yojana form along with the required documents, you will be able to open an account and start making monthly contributions. To ensure intervention free payments, ask for an Auto Debit Arrangement where the monthly payments are debited from your SBI bank account.
Penalty for Default and Discontinuation
Subscribers to SBI Atal Pension Yojana scheme are required to ensure no interruptions in monthly contributions. In case of delay or default, SBI is authorized to collect a penalty amount that ranges between Rs.1 to Rs.10 on the basis of the contribution amount.
In cases where the account does not receive monthly payments for 6 months or more, the account can be frozen. If the pension account does not receive monies for more than 12 months, it will considered as dormant and can be closed by the agency.
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