Atal pension Yojana (APY), Apply, Eligibility, Close

Atal pension Yojana (APY), Apply, Eligibility, Close

Do You Need Atal Pension Yojana?

Pradhan Mantri Ata! Pension Yojana (APY)

  1. How to Apply,
  2. Eligibility, Table of Interst Calculation, Amount calculator

 Good news for who are working in the unorganized sector, there are pension scheme launch by The Indian Government is striving hard to make the life of the old people much easier and convenient by supporting them financially Introduction of the ATAL PENSION YOJANA is one such leap towards the betterment of the elderly people. The thiswelfare scheme involves providing income security to the poor who are working in the unorganized sector. The plan includes encouraging them to save enough funds before they retire. No doubt, this would boost their financial confidence and would support them in old age when they actually need it the most.

The Atal Pension Yojana scheme is being administered by the Regulatory and Development Authority (PFRDA) and would greatly benefit people employed in the unorganized sector. For the in-depth Knowledge about this welfare scheme,check out below.

The Atal Pension Yojana plan is being managed by the Regulatory and Development Authority (PFRDA) and would greatly advantage people employed in the disorderly area. For the inside and out Knowledge about this welfare scheme, checkout.

Info what is Atal Pension Yojana?

Atal Pension Yojana or APY guarantees a minimum pension of Rs 1000 Rs, 2000 Rs, 3000 Rs, 4000 Rs, and 5000 Rs to the workers who are the citizens of India and are employed in the unorganized sector. One could claim these monetary benefits once the 60 years agethreshold reaches. The amount of pension scheme varies from 1000 Rs to 5000 Rs, which is totally dependent on the subscriber’s amount of contribution to the scheme.

Eligibility for subscribe in Atal Pension Yojana?

Anyone who is a citizen of India can is welcome to join this pension schema However one should need to meet the followingeligibility criteria set by the Government of India.

  1. The minimum age to be eligible is 18 years and must not exceed 40 years while applying
  2. The person must have a Savings bank account in his/her name or he/she can opt to open a new one before applyingto the schema
  3. The potential applicant must possess a mobile number which must be registered with the bank with full details

The Government co-contribution is available to the subscribers who apply from 1st June, 2015 till 31st Dec, 2015. TheGovernment is willing to support the workers who do not have any social security cover and not fall under the taxable income.

Who are the other social security schemes beneficiaries not eligible to receive Government co-contribution underAPY?

 The persons who are covered under various statutory social security schemes do not qualify to get Government’sco-contribution. The beneficiaries are currently the member of below mentioned social security covers would not get anymonetary support from the authorities. The list includes:

  1. The members registered under EPF schema
  2. The persons registered with the Coal Mines PF security cover
  3. The beneficiaries of Assam Tea Plantation PF schema
  4. Seamen’s PE act
  5. J&K PF scheme

Those individuals who are enjoying benefits of any other statutory social security scheme are also not eligible to apply andget benefits from the Government.

What will happen if required or sufficient amount is not maintained in the savings bank account for contribution on the due date?

 The subscriber’s savings bank account needs to maintain a minimum balance on the specified date which is equal to the one month’s contribution amount. In case the amount found to be lower than the required, the account will be measured as default. Banks are given the authority of penalizing those account holders by charging fine on them. The fine amount can be anything between One Rupee to Ten Rupees as the details mentioned below:

  1. If the contribution amount is Rs. 100/- Rs. per month, the fine charged would be One rupee per month
  2. For contribution amount from Rs. 101 to 500/-Rs. per month, the Two rupees per month would be fined.
  3. For Rs. 501/- Rs. to 1000/- Rs. per month, there will be Rs. 5/-Rs. per month fine
  4. 10 per month would be fined for the contribution above Rs. 1000/-Rs. per month

If for any reason, the payments get discontinued, the account would be frozen after the six months, deactivated after twelvemonths and would be completely closed after twenty four months.

Therefore, it is solely the subscriber’s headache to fund the account on the due date of contribution, to avoid penalties in the future.

S.No. Scheme fields Relevant details
1 Type of scheme Pension scheme (Under the PFRDA)
2 Date of effect of scheme 1June. 2015
3 Age for eligibility to join 18 years to 40 years
4 Time of maturity of pension scheme When the beneficiary attains 60 years of age
5 Targeted group of beneficiaries Employees of unorganized sectors, farmers, backward masses, women. SC/ST etc.
6 Inclusion of members of Swavalamban Yojana NPS Lite Automatic inclusion
7 Pension amount options Rs. 1.000. Rs. 2.000. Rs. 3.000. Rs. 4.000 and Rs. 5.000
8 Government’s contribution to the scheme 50 per cent of beneficiary’s contribution or Rs. 1.000 per year for 5 years
9 Eligibility to get Govt. contribution Must be non-tax payer and must join APY before Dec, 2015
10 Mode of monthly payment to APY account Auto debit process from the bank account linked with APY account
11 Where to apply for the APY scheme? All nationalized banks
12 Nomination facility Available
13 Non Payment for 6 months Account frozen
14 Non Payment for 12 months Account deactivated
15 Non Payment for 24 months Account permanently closed
16 Online download APY application form
17 Premature exit from scheme Yes you can now do a premature exist Will have to pay some fine. Fine amount is yet not clear.
18 Total number of APY accounts opened so far 2.405.268 (As on 16 April 2016)

Atal Pension VS National Pension Scheme (NPS)

S.No Factors APY NPS
1 What they stand for?  APY is a newly launched pension scheme by BJP government in order to provide financial support for the people after their retirements National Pension Scheme (NPS), is the old pension scheme which is in practice for about 10 years for  offering financial support for retired employees
2 Age Limits and Eligibility for Employees to join Employees who are all in between the age group 18 to 40 years are eligible to join in APY. Employee, a month after 40 years would be declined to join in APY Where else, in NPS the age limit rules will be 18 — 60 years In both scheme employees who are above 60 years are not allowed to joins.
3 Contributions Made by Employees As per the rules stated in APY. Contribution amount will get varies depending upon the ages of employees and the pension scheme which they chosen to receive after their retirement. Meanwhile, in  NPS minimum contribution was Rs.6000 for Tier I category employees and Rs.l000 for Tier Il category employees. Tier system implemented based on employees salary limits.

The amount of pension will be received under Atal Pension Yojana?

The Indian Government has made it clear that the amounts of pension will range from 1 thousand to 5 thousand per month.The amount will be greatly influenced by the beneficiary’s monthly contribution to the scheme, which means the greater thecontribution the more the amount of pension in future.

The benefit in joining Atal Pension Yoajna scheme?

Are you are wondering about the benefit of joining under this scheme? Then, you will be likely to get impressed with theGovernment co-contribution for the period of 5 years. The contribution amount will be either Rs. 1,000/- per annum or fiftypercent of the total amount of contribution towards the scheme, whichever is lower. The account holders will benefit from this co-contribution from the financial year starting from 2015 and till 2019.

Whether Aadhaar Number is compulsory for joining the scheme?

To submit Aadhaar card while applying for the scheme is not a compulsion and neither this condition is set mandatory by theauthorities. However it is for the subscriber’s own benefit as this could act as a primary KYC document to identify thebeneficiary and associated nominees. It could help you in claiming pension rights and settle down the disputes, if arise anyin the future. This is the reason for recommending Aadhar card for the APY account opening.

Can I open API Account without savings bank account?

No. in order to be eligible for the APY scheme, the savings bank account is compulsory. There is no exception to this termand condition.

How are the contributions of Atal Pension Yojana invested?

The Government’s contribution to the scheme will be made in line to the instructions set by the Indian Ministry of Finance.The whole scheme will be strictly administered and observed by the PFRDA which is the honorable authority of theGovernment of India.

How to Apply for Atal pension Account? 

  • Contact the bank where you have a savings account.
  • Ask for the APY registration form
  • Fill it carefully and provide the details of your Aadhaar card
  • Mention your mobile number and contact details mentioned in the form.
  • Make sure that you maintain the required minimum balance in your savings account,
  • Your contribution amount will get deducted from your account on the monthly basis.

What is the mode of contribution to the account?

 Regardless the amount of contribution of a subscriber each payment must be submitted to the savings bank account of thebeneficiary. From there, the contribution amount will be auto deducted every month. In case of doubt, you can ask theconcerned bank for details.

What is the due date for monthly contribution?

Your initial date of deposit will be considered as the due date for the payment of the contribution amount for the APYscheme. This pre-decided date is not flexible in any condition.

Other Important info

  • Now you can avail tax benefits on the premium amount
  • Now you can close your Atal pension account any time
  • PFRDA wants to open 5 million new APY accounts in FY 2016-17

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