Atal Pension Yojana(APY)

Submitted by sameer on Wed, 02/05/2020 - 11:47

Atal Pension Yojana(APY) is a government-backed pension scheme for citizen of India. The scheme was launched by Prime Minister Narendra Modi for unorganized sector on 9th of May in Kolkata. It was mentioned by the finance Minister Arun Jaitley in the 2015 Budget speech. APY is is administered by the Pension Fund Regulatory and Development Authority (PFRDA) through NPS architecture..

Guaranteed minimum pension of Rs 1,000/- to Rs 5,000/- per month will be given at the age of 60 years depending on the contributions by the applicants. APY scheme is available for all citizens of India.

Benefit of the scheme: -

  1. The scheme provides a fixed pension of Rs 1000 per month, Rs 2000 per month , Rs 3000 per month, Rs 4000 per month, Rs 5000 per month to the applicants depending upon the contributions, which itself would be based on the age of joining the aAPY.
  2. Government of India co-contribute 50% of the subscriber's contribution or 1000 Rs per annum, whichever is lower.
  3. The Government co-contribution will be provided for 5 years from the Financial Year 2015-16 to 2019-20.
  4. An applicant under National Pension System(NPS) is eligible to get benefit of tax for the contribution, upto a ceiling and even for the investment returns on such contributions.
  5. On exit from NPS, the purchase price of the annuity will not be taxed.
  6. Only pension income of the applicants are considered to be part of normal income and taxed appropriate marginal rate of tax, applicable to the subscriber.

Are you eligible for the scheme?

  • APY is applicable to all the citizens of India aged between 18-40 years.
  • All bank account holders may join the APY.
  • Not a member of any statutory social security scheme.
  • Primary KYC for the scheme is Aadhar. Aadhar and mobile number are recommended to be obtained from applicants for the ease of operation of the scheme. If not available at the time of registration, Aadhar details may also be submitted later stage.

Agencies available for enrolment

  • All Points of Presence (Service Providers)
  • Aggregators under Swavalamban Scheme
  • The banks, as POP or aggregators, may employ BCs
  • Existing non - banking aggregators
  • micro insurance agents
  • mutual fund agents as enablers for operational activities. The banks may share the incentives received by them from PFRDA/Government, as deemed appropriate.

How to apply: -

  1. Visit the bank branch/post office where your saving bank account is held or open a savings account if you don't have any,
  2. You have to provide the bank A/C number/Post office savings account number and with the help of the bank staff , fill up registration form of Atal Pension Yojana.
  3. Provide Aadhar number and mobile number . It is not compulsory, but may be provided to facilitate the updates regarding contribution.
  4. You have to keep the required balance in the savings bank account/post office saving bank account for transfer of monthly/quarterly/half yearly contribution.

Exit and pension payment

On attaining the age of 60 years, the applicants will submit the request to the associated bank for drawing the guaranteed monthly pension.

Exit before 60 years of age is not permitted, however, it is permitted only in exceptional cases, i.e., in the event of death of beneficiary.

Charges for default

The applicants need to pay additional charge to banks for delay in payments, such amount will vary from minimum Re 1/ month to Rs 10/month as shown below:

  • Re. 1/- per month for contribution upto Rs. 100/- per month.
  • Re. 2/- per month for contribution upto Rs. 101 to 500/- per month.
  • Re 5/- per month for contribution between Rs 501/- to 1000/- per month.
  • Rs 10/- per month for contribution beyond Rs 1001/- per month. The fixed amount of interest/penalty will remain as part of the pension corpus of the subscriber.

Indicative Monthly Contribution

S.no. Age of Entry Monthly pension of Rs 1000 Monthly pension of Rs 2000 Monthly pension of Rs 3000 Monthly pension of Rs 4000 Monthly pension of Rs 5000
1. 18 42 84 126 168 210
2. 20 50 100 150 198 248
3. 25 78 151 226 301 376
4. 30 116 231 347 462 577
5. 35 181 362 543 722 902
6. 40 291 582 873 1164 1454

Contact details: -

  • Phone: 011-23748778
  • APY Mission : 011-23748760,23748794
  • E-mail : missionfi@nic.in

 

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