APY - Atal Pension Yojana Last Updated : 25 May 2020

Atal Pension Yojana
Atal Pension Yojana

The Atal Pension Yojana (APY) scheme was announced by the Government of India in the 2015-2016 budget with the purpose of helping individuals who are working in the unorganised sector.

  • A pension of up to Rs.5,000 is paid per month
  • Tax benefits are provided
  • The Indian Government co-contributes towards the scheme
  • Risk-free scheme

The scheme was launched to help poor people working in the unorganised sector to receive regular income after retirement. The scheme encourages them to save for their retirement. All operations of the scheme are handled by the Pension Fund Regulatory and Development Authority (PFRDA). The APY scheme is a voluntary scheme to save for retirement.

For more information, Check out related articles Atal Pension Yojana Rules, Atal Pension Yojana Calculator & Atal Pension Yojana SBI

Process to Apply for Atal Pension Yojana

The below-mentioned steps must be followed to avail the benefits of the scheme:

  • All nationalised banks offer the APY scheme. Individuals can visit these banks to open an APY account.
  • The account opening forms are available online on the bank websites as well. Individuals can download the application form.
  • The application form is available in English, Telugu, Tamil, Odia, Marathi, Kannada, Gujarati, and Bangla.
  • The application form must be filled and submitted at the bank.
  • A valid mobile number should be provided.
  • Aadhaar card photocopy must be submitted.

Upon approval of your application, you will receive a confirmation message.

How to Fill Atal Pension Yojana Form

Once you have procured the form for the Atal Pension Yojana Scheme, filling it is simple.

Step 1: Addressing the form

You have to address the form to the Branch Manager. You can find out the name of your Branch Manager by calling or visiting the bank. Enter your bank name and branch.

Step 2: Bank details

Fill the form in BLOCK letters. First, you are required to provide your bank details. Enter your bank account number, bank name and bank branch. This field is compulsory.

Step 3: Personal details

  • Tick the box that is applicable that indicates whether you are “Shri”, “Smt” or “Kumari”. Tick “Shri” if you are a male applicant. Tick “Smt” if you are a married female applicant. Tick “Kumari” if you are a single female applicant.
  • Married applicants must enter their spouse’s name.
  • Enter your full name, date of birth, and age.
  • Provide your mobile number, email address and Aadhaar number.
  • You can then nominate someone and state their relationship to you. A nominee will receive your contribution in case of your death.
  • If the nominee is a minor, you need to provide their date of birth and guardian's name.
  • You must also state if the nominee has any other statutory social security schemes and if they are income taxpayers.

Step 4: Pension details

You can contribute towards your pension, between Rs.1,000 and Rs.5,000 with options in the form as Rs.1,000, Rs.2,000, Rs.3,000, Rs.4,000, and Rs.5,000. The box below titled, “Contribution Amount (Monthly)” is to be left blank as that will be filled in by the bank after calculating the amount you have to pay every month to receive the pension.

The calculation will be based on your entry age. For example, for a pension of Rs.2,000, if your entry age is 25 years, you will have to pay Rs.151 per month.

Step 5: Declaration and Authorisation

You need to fill in the date and place. You can either sign the document or put a thumb impression. By signing the document, you declare that you meet the Atal Pension Yojana eligibility criteria, and that you have read and understood the terms and conditions of the scheme. You declare that all the information you have written is correct as far as you know. If any changes have to be made to the information provided, you will contact the bank immediately. You also declare that you do not have any account under NPS ( National Pension System). You will be held liable for any false or incorrect information knowingly provided.

Step 6: To be filled in by the bank

The last section of the Atal Pension Scheme form, titled “Acknowledgement - Subscriber Registration for Atal Pension Yojana (APY)” is to be filled in by the bank. You should leave this box blank. It is an acknowledgment from the bank that they will subscribe to the Atal Pension Yojana Scheme for you. After you submit the form, the bank agent will fill it out.

Contributions towards Atal Pension Yojana

The monthly pension that you want to receive and your age when you start the scheme, the main factors that affect the monthly contribution towards Atal Pension Yojana. The table below shows the monthly contribution that an individual must make and the number of years the contribution must be made to receive a pension of Rs.1,000, Rs.2,000, Rs.3,000, Rs.4,000, or Rs.5,000:

Entry age Number of years of contributions Monthly pension of Rs.1,000 and a return of corpus of Rs.1.70 lakh (Rs.) Monthly pension of Rs.2,000 and a return of corpus of Rs.3.40 lakh (Rs.) Monthly pension of Rs.3,000 and a return of corpus of Rs.5.10 lakh (Rs.) Monthly pension of Rs.4,000 and a return of corpus of Rs.6.80 lakh (Rs.) Monthly pension of Rs.5,000 and a return of corpus of Rs.8.50 lakh (Rs.)
18 42 42 84 126 168 210
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 1,087
38 22 240 480 720 957 1,196
39 21 264 528 792 1,054 1,318

Atal Pension Yojana Withdrawal Procedure

Although initially this scheme did not permit exiting before you reach the age of 60, the Atal Pension Yojana withdrawal procedure has been slightly modified:

  • If you have reached 60 years of age, then you can exit this scheme with a complete annuitization of the pension amount. You will have to visit the bank and apply for your pension.
  • You can exit the scheme before turning 60 years old only under exceptional circumstances such as terminal illness or death. In case of your demise before reaching the age of 60, your spouse will receive your pension. In the event that both you and your spouse have expired, the pension would be paid to your nominee.

Atal Pension Yojana Penalty Charges

In case of delayed payments, the below-mentioned (APY) penalty charges will be levied on a monthly basis:

  • Penalty of Re.1 will be levied in case of contributions of up to Rs.100 per month.
  • Penalty of Rs.2 will be charged in case of contributions between Rs.101 and Rs.500 per month.
  • Penalty of Rs.5 will be levied for contribution between Rs.500 and Rs.1,000 per month.
  • Penalty of Rs.10 will be charged in case of payments above Rs.1,001 per month.

Depending on the pension amount, the APY penalty charges will be a fixed amount.

In case there is a stoppage in payments, the below-mentioned points apply:

  • If there are no payments made for a duration of 6 months, the account will be frozen.
  • The account will be deactivated if there are no payments made for a duration of 12 months.
  • The APY account will be closed if payments are not made for a duration of 24 months.

Atal Pension Yojana Eligibility

The eligibility of Atal Pension Yojana are mentioned below:

  • You must be an Indian citizen.
  • You must be between the ages of 18 and 40 years.
  • You must have an active mobile number.
  • You must have a valid bank account number linked to your Aadhaar number.
  • You must submit all ‘Know Your Customer’ details.
  • You must not have an existing APY account.

Features & Benefits of Atal Pension Yojana

The main features of the APY scheme are mentioned below:

  • The Indian Government guarantees the minimum pension that will be paid to the individual after retirement.
  • Under Section 80CCD, individuals are eligible for Atal Pension Yojana tax benefits for the contributions made towards the scheme.
  • All bank account holders are eligible to join the APY scheme.
  • Individuals will start receiving pension once they reach the age of 60.
  • Private sector employees who are not provided any pension benefits are also allowed to apply for Atal Pension Yojana scheme.
  • You have an option of receiving a fixed pension of Rs.1,000, Rs.2,000, Rs.3,000, Rs.4,000, or Rs.5,000 once you reach 60 years of age.
  • In case of your demise during the scheme, your spouse can either claim the contributions or complete the duration of the scheme.

FAQ's On Atal Pension Yojana

  1. If I want to open an Atal Pension Yojana account, what is the procedure to be followed?
    • Fill the Atal Pension Yojana subscription form.
    • Provide your Aadhaar number and a valid mobile number.
    • Submit the APY form? to the bank and set auto-debits from your bank account.
    • Ensure you have sufficient balance in your account to make regular contributions.
  2. Is it mandatory to submit the Aadhaar number while registering for this scheme?
  3. It is not mandatory to provide the Aadhaar number while subscribing but, the Aadhaar card will be the primary KYC document required by banks to identify beneficiaries, nominees and the subscriber’s spouse.

  4. Can I open an Atal Pension Yojana account without holding a savings account?
  5. No, it is mandatory for applicants to hold a savings bank account while applying for this scheme.

  6. How is the due date for the monthly contribution decided?
  7. The due date is decided based on the first deposit date.

  8. Is it mandatory for subscribers to give a nomination when they join the Atal Pension Yojana scheme?
  9. Yes, nominations are mandatory. The nominee details have to be provided along with spouse’s details while applying for the Atal Pension Yojana scheme. The Aadhaar details also have to be provided for the spouse and the nominee.

  10. How many Atal Pension Yojana accounts can a subscriber open?
  11. A single subscriber is allowed to open only one Atal Pension Yojana account, which will remain unique to them.

  12. Can I join the Atal Pension Yojana scheme without holding an Aadhaar number?
  13. When opening the Atal Pension Yojana account an Aadhaar number is not required, but Aadhaar details would be needed for enrolling beneficiaries, spouse and while identifying nominees.

  14. Can members of the Employees Provident Fund (EPF) enroll for the Atal Pension Yojana scheme?
  15. Yes, Employees Provident Fund (EPF) subscribers are also eligible to enroll for the Atal Pension Yojana scheme.

  16. Can Atal Pension Yojana account holders enjoy any tax benefits from the scheme?
  17. No, subscribers cannot get any tax deductions on the monthly contribution amount done under the Atal Pension Yojana scheme.

  18. Can I change my monthly contribution amounts?
  19. Yes, monthly contributions amounts can be decreased or increased once a year, during April, depending on your requirements.

  20. How can I check my account balance?
  21. You will receive periodic statements regarding the status of your accounts and the balance available. Instant information can be received through an SMS alert on the registered mobile number.

  22. I have changed my city of residence, Can I still make monthly contributions to my account?
  23. Yes, you can continue to make monthly contributions to your account without any interruptions, as the amount is paid only through pre-set auto-debits.

  24. What happens if I don’t have sufficient balance in my account to make my monthly contribution?
  25. In case of insufficient balance in your account for making your monthly contribution, a penalty will be imposed.

  26. What will happen to my account if I become an NRI?
  27. Only Indian citizens are eligible to open an Atal Pension Yojana account. If you become an NRI, then the account will be closed. The accrued contribution amount will be given to you and this will be treated like a voluntary exit done before the age of 60.

News About Atal Pension Yojana

  • Partial withdrawal facility may be provided to Atal Pension Yojana subscribers by the government

    The government may provide the partial withdrawal facility for Atal Pension Yojana subscribers to help them during the coronavirus outbreak that has crippled individuals in the unorganised sector.

    According to the Chairman of PFRDA, Supratim Bandyopadhyay, a circular would be issued within the next two days that will allow individuals for partial withdrawal due to COVID-19. The Chairman further added that apart from critical illnesses and emergencies, the condition for partial withdrawal under COVID-19. The Finance Ministry has been requested by the PFRDA to add this provision. The limit of withdrawal will be remaining the same at 25%. As of 31 March 2019, there are around 2.11 crore subscribers under the APY scheme. The total number of subscribers under the NPS and APY schemes is 3.47 crore. The National Pension System (NPS) and the APY are the two schemes that are run by the PFRDA. The APY scheme is targeted at unorganised sector workers, while the NPS scheme is provided for state and central governments, individual taxpayers, and autonomous bodies. The majority workforce of India is employed by this sector that comes under the APY scheme. Due to the current lockdown, the sector is facing difficulties.

    14 April 2020

  • PFRDA aiming to add at least 10 lakh new subscribers by March

    PFRDA, India’s pension regulator, is looking add 10-12 lakh new subscribers to its two pension schemes by the current financial year that ends in March. The announcement was made by the Chairman of the PFRDA, Supratim Bandyopadhyay, on 26 February 2020. Supratim Bandyopadhyay was a whole-time member of the PFRDA for two years before taking charge as the chairman on 21 February 2020. The pension fund regulator that operates the National Pension System (NPS) and the Atal Pension Yojana (APY) is looking to have around 3.48 crore to 3.5 crore subscribers by the end of March. As of 22 February 2020, the number of subscribers under the two schemes is around 3.38 crore

    28 February 2020

  • Atal Pension Yojana age limit may increase from 40 years to 50 years

    Hemant Contractor, chairman of Pension Fund Regulatory and Development Authority (PFRDA), said on 18 February 2019 that they have requested the Indian Government to increase the upper age limit for the Atal Pension Yojana (APY) scheme from 40 years to 50 years. However, the government is yet to give a response regarding the issue.

    Currently, people between 18 years and 40 years of age, who have an active mobile number and a savings bank account can open an APY account. On attaining the age of 60 years, individuals are guaranteed a regular pension between Rs.1,000 and Rs.5,000. In December 2018, the government decided to increase its contribution from 10% to 14% for central government employees under the National Pension System (NPS). Hemant Contractor further added that he hopes the government increases its contribution for state government employees as well.

    19 February 2019

  • PFRDA to Digitize the Services of the Atal Pension Yojana

    The Pension Fund Regulatory and Development Authority (PFRDA) has been working towards digitizing the services that it offers to the subscribers of the Atal Pension Yojana (APY). The PFRDA is looking to extend the benefits of online services to make transactions more convenient and less time-consuming.

    The PFRDA has introduced a number of online features including a grievance redressal module, the option of upgrading or downgrading pension amount and seeding Aadhaar details with the APY account. Additionally, a mobile application has also been launched to provide subscribers with the real-time information on their accounts.

    The PFRDA has also launched the APY@eNPS that offers users digital enrollment to the APY and does not require submission of any physical forms.

    The number of subscribers to the APY has been growing steadily and is now close to crossing the 1 crore mark.

    30 March 2018

  • Aadhaar card mandatory for Atal Pension Yojana subscribers

    On January 1, 2018, the PFRDA announced that linking one’s Aadhaar card will be made mandatory for all those wishing to subscribe to the Atal Pension Yojana. The organisation made the decision aligning to the Government of India’s push for all citizens to enroll in the Aadhaar card scheme. In fact, now when subscribing to the Atal Pension Yojana now subscribers will have to fill in their Aadhaar card details in the account opening form. As per the form, it states that - I hereby authorize PFRDA to use my Aadhaar details for APY and authenticate my identity through the Aadhaar Authentication system in accordance with the provisions of the Aadhaar (Targeted Delivery of Financial and other Subsidies, Benefits and Services) Act,2016 and rules and regulations notified there under.

    1 January 2018

  • PFRDA aims at 1 crore subscribers for the Atal Pension Yojana by the end of the financial year

    Already having 75 lakh subscribers enrolled to the Atal Pension Yojana, the PFRDA is aiming at touching 1 crore subscriber by March 2018, in the focus of making India a pension society. According to PFRDA Chairman Hemant Contractor, we have fixed a target of 1 crore for APY to be achieved by this fiscal-end. When we can achieve huge success in Pradhan Mantri Jeevan Jyoti Bima Yojana (PMJJBY) and Pradhan Mantri Suraksha Bima Yojana (PMSBY), we see no reason why can’t the APY target be achieved. According to an official, the  objective of the PFRDA is to cover the maximum possible population uncovered by any pension scheme under the APY scheme so that India as a nation could move from a ‘pension-less’ to a ‘pensioned society’. And in a bid to meet its objective, PFRDA has already taken lots of initiatives to increase the subscriber base under the Atal Pension Yojana.

    29 November 2017

  • Atal Pension Yojana mobilisation campaign to expand reach

    To expand its reach across the country, the PFRDA has organised the Atal Pension Yojana mobilisation campaign. According to the PFRDA chairman, Hemant Contractor, we are launching state-specific APY campaigns. We have started off with Uttar Pradesh and will be running this campaign across 5-6 big states in order to get as many people in the state as possible to join APY. In the first three days, more than 15,000 APY accounts have been sourced in UP.

    20 November 2017

  • PFRDA, Centre Targets 1 Crore Atal Pension Yojana Accounts by March

    The pension regulator (PFRDA) along with the Central Government are hoping to bring in at least 1 crore subscribers under Atal Pension Yojana (APY) by March 2018. APY is a flagship scheme of the Centre and is overseen by PFRDA.

    Atal Pension Yojana is a very important component of the government’s plan to include those 60 years and above in age in pension benefit schemes. Since its launch 2 years ago, the scheme has attracted 69 lakh customers.

    The Secretary of Financial Services Department, Rajiv Kumar, remarked that pension coverage in India is quite low, still at around 10% to 12%. He opined that since other government pension programmes have been huge success in the past, the Atal Pension Yojana will be no different in achieving its target.

    The Financial Services Department is closely watching the progress in APY enrolment. In the period April to September 2017, 20 lakh APY new accounts were opened.

    Since its inception in June 2016, the pension had 25 lakh accounts opened in 2015-16, and an additional 25 lakh APY accounts were registered in 2016-17.

    15 October 2017

  • 62 lakh citizens have enrolled with the Atal Pension Yojana

    Despite the Atal Pension Yojana being launched only two years back by the Modi-led Government, the scheme has already achieved a subscriber base of 62 lakh. Jubilant with the feat, the PFRDA said, when the interest rate on various financial instruments including savings bank is declining, Atal Pension Yojana as a pension scheme offers a guaranteed rate of 8% assured return for the subscribers and also the opportunity of higher earnings in case the rate of return is higher than 8% at the time of maturity after staying invested in the scheme for 20-42 years. The organisation added by saying that increasing enrolment is attributed to financialisation of assets and driving the people to pension products which has government implicit guarantee to give an assured pension to the subscriber, spouse and return of corpus to the nominee. They ended the statement by saying that their objective is to cover the maximum possible population uncovered by any pension scheme under the APY scheme so that India can move from a pension-less to a pensioned society and the citizens can live a life of dignity in their vulnerable years.

    4 September 2017

  • More than 58 lakh subscribe to the Atal Pension Yojana

    The government-backed pension scheme which was relaunched by Prime Minister Narendra Modi has crossed a subscriber base of 58 lakh members. According to a survey carried out by the Ministry of Finance, more than 58 lakh citizens have subscribed to the Atal Pension Yojana (APY). As on July 22, 2017, the APY subscriber base stood at 58,08,071 as against 34,84,895 on March 31, 2016. For this, the government, under APY has allocated a fund of Rs 155 crore in 2017-18.

    22 August 2017

  • Government provides social security cover for the unorganized sector

    A measure to reach out to people in the country who are less fortunate, the government enacted the Unorganised Workers' Social Security Act, 2008, to aid people from the rural areas and the unorganized sector. The welfare schemes falling under this act are: life and disability cover, old age protection and health and maternity benefits, while benefits under the National Social Security Board also fall under this act. To care for the senior citizens who are often neglected, the government launched the Atal Pension Yojana (APY). Here, senior citizen subscribers would get a fixed minimum pension, provided that the senior citizen is not an Income Tax payer or has any other statutory social security benefit from other schemes.

    5 December 2016

  • Rs.500 and Rs.1,000 Not Legal Tender

    PM Narendra Modi address the nation with an announcement that quite shocked the citizens. In efforts to curb black money in the economy, on 8th November, Modi declared all Rs.500 and Rs.1,000 notes to not be legal tender from midnight. People have the option to deposit all Rs.1,000 and Rs.500 notes into their bank or post office accounts, or they can exchange it for other denominations. All other denominations of notes and coins will be valid in the country including Re.1, Rs.2, Rs.5, Rs.10, Rs.50, and Rs.100. The deadline for depositing the invalid denominations falls on 30th December. Between 31st December and 31st March, people can still deposit or exchange the money at RBI branches with a declaration.While assuring the government that the PFRDA has the infrastructure in place to facilitate the merge, he iterated that consolidation will propel the growth of subscribers for pension products. In addition, he also requested the government to look into forming parity between the EPF and the NPS schemes, as the former is tax-free while in the case of the latter, only upto 40% is tax-free, while considering the consolidation.

    28 November 2016

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