The Atal Pension Yojana (APY) scheme was announced by the Government of India in the 2015-2016 budget with the main aim 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 with the aim of helping poor people who work in the unorganised sector receive a regular income after retirement. The scheme encourages poor people 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 that poor workers in the unorganised sector can opt for in order to save for their retirement.
Process to Apply Atal Pension Yojana
The below-mentioned steps must be followed in order 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 online.
- The application form is available in English, Telugu, Tamil, Odia, Marathi, Kannada, Gujarati, and Bangla.
- The application form must be filled up and submitted at the bank.
- In case a valid mobile number is not provided at the bank, individuals must provide the number.
- The Aadhaar card photocopy must be submitted by the individual as well.
In case the application form of the individual has been approved, he/she 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 up is simple.
Step 1: Address
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
You can start filling the form in BLOCK letters. First, you are required to provide your bank details. Enter your bank account number, bank name and bank branch. Filling up 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.
- Enter your full name, date of birth, and age.
- Provide your mobile number, email address and aadhaar card number.
- Tick the correct box to indicate if you are married or single. If you are married, you must provide your spouse’s name.
- 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 opt to contribute towards a pension of Rs. 1000 up to Rs. 5000. The form gives you the option of ticking 1000, 2000, 3000, 4000 or 5000. The box below that is to be filled in by the bank titled “Contribution Amount (Monthly)”. Leave that space blank. The bank will calculate the amount you have to pay every month to receive the pension of your choice. This calculation is done on the basis of your entry age. For example, for a pension of Rs. 2000, if your entry age is 25 years, you will have to pay Rs. 151 per month.
Step 5: Declaration and Authorization
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 Atal Pension Yojana 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 and correct information knowingly provided, including the Aadhaar card.
Step 6: To be filled in by the bank
The last section of the Atal Pension Scheme form is to be filled in by the bank titled “Acknowledgement - Subscriber Registration for Atal Pension Yojana (APY)”. You should leave this box blank. It is an acknowledgment of 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 an individual wants to receive and the age of the individual when he/she starts the scheme are the main factors that affect the monthly contribution towards Atal Pension Yojana. The below mentioned table 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.)|
Atal Pension Yojana Withdrawal Procedure
Although initially this scheme did not permit exiting before the subscriber reached the age of 60, the Atal Pension Yojana withdrawl procedure have been slightly modified.
- If the subscriber has attained the age of 60 then he/she can exit this scheme with a complete annuitization of the pension amount. The subscriber will have to visit the bank manager in this regard and apply for the same.
- Exit before the subscriber attains the age of 60 is permitted only in exceptional circumstances such as terminal illness or death. In case the subscriber expires before the age of 60 then the pension amount will be provided to the spouse. In case both the subscriber and spouse have expired then the amount would be returned to the nominee.
Atal Pension Yojana Penalty Charges
In case of delayed payments, the below-mentioned (APY) penalty charges will be levied on a monthly basis:
- Re.1 will be the penalty that will be levied in case of contributions of up to Rs.100 per month.
- Rs.2 will be the penalty that is charged in case of contributions between Rs.101 and Rs.500 per month.
- Rs.5 will be the penalty charges that are levied for contribution between Rs.500 and Rs.1,000 per month.
- Rs.10 will be the penalty that is 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:
- The individual must be an Indian citizen.
- Contributions must be made for a span of 20 years.
- Individuals must have an active mobile number.
- The APY age limit for individuals to invest in the scheme is between the ages of 18 years and 40 years.
- Individuals must have a valid bank account number and it must be linked with the Aadhaar number.
- All ‘Know Your Customer’ details must be submitted by the individual.
- In case an individual wants to apply for the scheme, he/she cannot have an already 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.
- The Government of India co-contributes a maximum of Rs.1,000 or 50% of the individual’s contribution, whichever is lower, towards the scheme. The contribution made by the government is only for individuals who are not income taxpayers and are not covered by any Statutory Social Security Schemes.
- All bank account holders are eligible to join the APY scheme.
- The co-contribution made by the government is for a period of 5 years and are for individuals who join between 1 June 2015 and 31 December 2015.
- Individuals will start receiving a pension once they reach the age of 60 years old.
- Private sector employees who are not provided any pension benefits are also allowed to apply for Atal Pension Yojana scheme.
- Individuals 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 they attain the age of 60 years old.
- In case the main account holder passes away during the duration of the scheme, the spouse can either claim the contributions or complete the duration of the scheme.
- Is the Atal Pension Yojana Government of India co-contribution available to beneficiaries of all other social security schemes?
No, beneficiaries who fall under statutory social security schemes cannot receive the Government’s co-contribution. Beneficiaries of social security schemes under the below listed enactments are not eligible to receive the Government co-contribution.
- Jammu Kashmir Employees’ Provident Fund & Miscellaneous Provision Act, 1961.
- Seamens’ Provident Fund Act, 1966.
- Assam Tea Plantation Provident Fund and Miscellaneous Provision, 1955.
- The Coal Mines Provident Fund and Miscellaneous Provision Act, 1948.
- Employees’ Provident Fund & Miscellaneous Provision Act, 1952.
- Other applicable statutory social security schemes.
- Customers have to fill-in the Atal Pension Yojana subscription form.
- The Aadhaar number and a valid mobile number have to be provided.
- The submitted APY form has to be submitted to the concerned bank and auto-debits have to be set in the customer’s bank account. It is mandatory that the subscriber maintains the required balance in his savings account for making regular contributions.
It is not mandatory for the applicant 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.
No, while joining the Atal Pension Yojana scheme, it is mandatory for applicants to hold a savings bank account.
The due date for an Atal Pension Yojana account is decided based on the first deposit date.
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.
A single subscriber is allowed to open only one Atal Pension Yojana account, which will remain unique to him.
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.
Yes, Employees Provident Fund (EPF) subscribers are also eligible to enroll for the Atal Pension Yojana scheme.
No, subscribers cannot get any tax deductions on the monthly contribution amount done under the Atal Pension Yojana scheme.
Yes, monthly contributions amounts can be decreased or increased, depending on the subscriber’s requirements, once a year, during April.
Atal Pension Yojana subscribers will receive periodic statements regarding the status of their accounts and the balance available. Instant information can be got through an SMS alert on the registered mobile number.
Yes, he can continue to make monthly contributions to his Atal Pension Yojana account without any interruptions, as the amount is paid only through preset auto-debits.
If the required amount of funds are not available in the subscriber’s account, then the bank will impose a penalty amount for each delayed contribution.
Only Indian citizens are eligible to open an Atal Pension Yojana account. If an Atal Pension Yojana subscriber becomes an NRI, then the account will be closed. The accrued contribution amount will be given to the subscriber and this will be treated like a voluntary exit done before the age of 60.
Atal Pension Yojana Top Pages
- Atal pension Yojana SBI
- Atal pension yojana premium
- atal pension yojana withdrawal
- APY Calculator
- Apply for atal pension yojana
- Atal pension yojana online
- How to close APY Account
- Atal Pension Yojana Canara Bank
- Atal Pension Yojana Form
- Andhra Bank Atal Pension Yojana
- Atal Pension Yojana Pension Return
- Atal Pension Yojana Tax Benefits
- Atal Pension Yojana Benefits
- Atal Pension Yojana Penalty Charges
Atal Pension Yojana Other Pages
- Allahabad Bank Atal Pension Yojana
- Atal Pension Yojana Eligibility
- Atal Pension Yojana State Bank of Patiala
- Atal Pension Yojana ICICI Bank
- Atal Pension Yojana UCO Bank
- Punjab National Bank Atal pension Yojana
- How to Get Atal Pension Scheme
- Indusind Bank Atal Pension Yojana
- Syndicate Bank Atal Pension Yojana
- Union Bank of India Atal pension Yojana
- Vijaya Bank Atal Pension Yojana
- How To Withdraw From Atal Pension Yojana Account
- Atal Pension Yojana Scheme Rules
- Atal Pension Yojana Age Limit