Atal Pension Yojana (APY)

Atal Pension Yojana (APY), is a pension scheme for citizens of India focused on the unorganized sector workers. Under the APY, guaranteed minimum pension of Rs. 1,000/-, 2,000/-, 3,000/-, 4,000 and 5,000/- per month will be given at the age of 60 years depending on the contributions by the subscribers.

Any Citizen of India can join APY scheme. The following are the eligibility criteria,

  • The age of the subscriber should be between 18 - 40 years.
  • He / She should have a savings bank account/ open a savings bank account.
  • The prospective applicant should be in possession of mobile number and its details are to be furnished to the bank during registration.

Government co-contribution is available for 5 years, i.e., from 2015-16 to 2019-20 for the subscribers who join the scheme during the period from 1st June, 2015 to 31st December, 2015 and who are not coBeneficiaries who are covered under statutory social security schemes are not eligible to receive Government co-contribution.

Guaranteed minimum pension of Rs 1,000/-, 2,000/-, 3,000/-, 4,000 and 5,000/- per month will be given at the age of 60 years depending on the contributions by the subscribers.

In APY, Government will co-contribute 50% of the total contribution or Rs. 1,000/- per annum, whichever is lower, to the eligible APY account holders who join the scheme during the period 1st June, 2015 to 31st December, 2015. The Government co-contribution will be given for 5 years from FY 2015-16 to 2019-20.

Procedure for opening APY Account

  • Approach the branch where individual’s savings bank account is held.
  • Fill up the APY registration form.
  • Provide Aadhaar/Mobile Number.
  • Ensure keeping the required balance in the savings bank account for transfer of monthly contribution.

It is not mandatory to provide Aadhaar number for opening APY account. However, For enrolment, Aadhaar would be the primary KYC document for identification of beneficiaries, spouse and nominees to avoid pension rights and entitlement related disputes in the long-term.

For joining APY, savings bank account is mandatory.

All the contributions are to be remitted monthly through auto-debit facility from savings bank account of the subscriber.

The due date for monthly contribution will be as per the initial date of deposit of contribution into APY.

Non-maintenance of required balance in the savings bank account for contribution on the specified date will be considered as default. Banks are required to collect additional amount for delayed payments, such amount will vary from minimum Re 1 per month to Rs 10/- per month as shown below:

  • Rs 1 per month for contribution up to Rs. 100 per month.
  • Rs 2 per month for contribution up to Rs. 101 to 500/- per month.
  • Rs 5 per month for contribution between Rs 501/- to 1000/- per month.
  • Rs 10 per month for contribution beyond Rs 1001/- per month

Discontinuation of payments of contribution amount shall lead to following:

  • Rs 1 per month for contribution up to Rs. 100 per month.
  • Rs 2 per month for contribution up to Rs. 101 to 500/- per month.
  • Rs 5 per month for contribution between Rs 501/- to 1000/- per month.
  • Rs 10 per month for contribution beyond Rs 1001/- per month

Discontinuation of payments of contribution amount shall lead to following:

  • After 6 months account will be frozen.
  • After 12 months account will be deactivated.
  • After 24 months account will be closed.

Subscriber should ensure that the Bank account to be funded enough for auto debit of contribution amount.

The fixed amount of interest/penalty will remain as part of the pension corpus of the subscriber.

Investment in APY to get the guaranteed pension of Rs. 1000.

Age of Joining Years of Contribution Indicative Monthly contribution
18 42 42
20 40 50
25 35 76
30 30 116
35 25 181
40 20 291

All the contributions are to be remitted monthly through auto debit facility from savings bank account of the subscriber.

It is mandatory to provide nominee details in APY account. The spouse details are also mandatory wherever applicable. Their aadhaar details are also to be provided.

A subscriber can open only one APY account and it is unique.

The subscribers can opt to decrease or increase pension amount during the course of accumulation phase, as per the available monthly pension amounts. However, the switching option shall be provided once in year during the month of April.

The withdrawal procedure from APY

A. On attaining the age of 60 years:

The exit from APY is permitted at the age with 100% annuitisation of pension wealth. On exit, pension would be available to the subscriber.

B. In case of death of the Subscriber due to any cause:

In case of death of subscriber pension would be available to the spouse and on the death of both of them (subscriber and spouse), the pension corpus would be returned to his nominee.

C. Exit Before the age of 60 Years:

The Exit before age 60 would be permitted only in exceptional circumstances, i.e., in the event of the death of beneficiary or terminal disease. The status of contributions will be intimated to the registered mobile number of the subscriber by way of periodical SMS alerts. The Subscriber will also be receiving physical Statement of Account.

Periodic statement of APY account will be provided to the subscribers.

The contributions may be remitted through auto debit uninterruptedly even in case of dislocation.