Atal Pension Yojana is one of the best schemes introduced by the Indian government to date. For the good concern of the old age income security of the unorganized sector workers of the country, the government has initiated a new scheme by the name Atal Pension Yojana. The scheme focuses on encouraging and enabling the unorganized sector workers to join the National Pension System (NPS). But due to certain factors, the scheme has not been popularized enough so it can have the kind of impact it requires.
In this article, we will be discussing all of the major factors of the Atal Pension Yojana. In the article, we will try to conclude whether the scheme is really profitable and healthy for the people or is just a kind of paperwork. We will be covering every important point related to the topic, its features, benefits, negative sides, and almost everything. In the article, you will get all the details of this pension scheme.
What Atal Pension Yojana?
Atal Pension Yojana is a kind of pension scheme initiated by the government. The scheme focuses on providing a defined pension, depending on the contribution, and its period. Please note that both NPS and APY are administered by the Pension Fund Regulatory and Development Authority.
Under this loan scheme, the laborers will get a fixed minimum pension of INR 1000, 2000, 3000, 4000, and 5000 per month at the age of 60 years. The pension limit will be evaluated by their contribution that itself would be evaluated by their age of joining the Yojana. To be able to avail of APY benefits, the workers need to contribute a certain amount of money to the scheme.
For example, if a 28 years old worker wants to get a monthly pension of INR 4,000 from the scheme, he needs to contribute INR 388 per month. The final pension that the workers get depends on their contribution as well the per month pension they want.
Atal Pension Yojana Benefits
The APY scheme was introduced on 9 May 2015. Till then, the Yojana has served thousands of laborers working in the unorganized sector to get pension benefits without much hassle. APY has provided the joined members of the scheme with a number of benefits. Below, we have mentioned some of the major benefits of Atal Pension Yojana.
The yojana promises guaranteed pensions to joined members ranging from Rs.1000 to Rs.5000 per month.
The Government of India will contribute 50% of the subscriber’s contribution or Rs.1000 per year. The amount seems to be quite low, however! A point to be noted here that the contribution made by the government will be available only for those who had joined between June 2015 and December 2015 for a period of 5 years. The subscribers should not be covered by any statutory social security schemes and are not certified income taxpayers of the country.
Eligibility for Atal Pension Yojana
To join the scheme as a legal subscriber, you will have to make up some simple eligibility criteria. Below, we have mentioned the eligibility for Atal Pension Yojana passing which you will be able to avail of the APY benefits quite easily.
1. The age of the prospective applicant should be between 18 – 40 years.
2. He / She should have a savings bank account/ post office savings bank account
The applicant may provide Aadhaar and mobile number to the bank during the registration process. However, Aadhaar is not mandatory for enrolment.
Atal Pension Yojana age limit
Any Indian resident eligible for the APY can subscribe to the yojana after the age of 18 years and before the age of 40 years. The defined age of exit and start of the payment benefits is 60 years. According to the government of India, to be able to avail of APY benefits, a subscriber must have contributed under APY for a minimum of 20 years.
How to apply for the Atal Pension Yojana?
If you want to apply for Atal Pension Yojana, you can do it in two ways. The first way is the offline way wherein you will be getting assistance from your bank. In the second way, we will guide you how you can apply for Atal Pension Yojana online. Below, we have mentioned both ways in brief.
Atal Pension Yojana apply offline
While applying for Atal Pension Yojana through the offline way, you will need to visit the nearest branch of the bank you have an account with. Usually, most of the bank branches keep the Atal Pension Yojana form. The yojana form comes in different languages that include English, Hindi, Tamil, Bangla, Gujarati, as well as Marathi. You can pick up the form in the language of your choice.
You need to complete the form by filling all the required spaces with accurate answers. After the form filling process, submit the form to the bank. If you have an open account with the bank, your KYC details will be replicated to the scheme details from your account without any issue. After you submit the application, you will get information of your APY scheme joining via an SMS on your registered mobile number.
Atal Pension Yojana apply online
To apply for Atal Pension Yojana online, you just need to follow the simple steps mentioned below. The application process is quite simple and anyone with a device with an active internet connection can complete it without any hassle.
1. Visit the official website of your bank where you have a registered account.
2. Log in to your bank account using your account number and the OTP received on your mobile number.
3. Download the official Atal Pension Yojana form PDF from the website.
4. Print out the PDF and fill all the required blanks with accurate information. After filling the form successfully, upload it to the bank successfully.
5. If you haven’t yet, provide your bank with a valid mobile number. Please keep that mobile number active because you will be receiving the application approval message on that number.
6. Provide your bank with a copy of your verified Aadhaar Card.
So, the application process for Atal Pension Yojana completed. Once your application approved, you will be provided with a notification message on your registered mobile number.
Atal Pension Yojana maturity benefits
The Atal Pension Yojana matures at the age of 60 years if you have successfully contributed to the scheme for a minimum of 20 years. The APY maturity benefits provide the subscribers with a monthly pension of INR 1000, INR 2000, INR 3000, INR 4000, and IRN 5000. The Atal Pension Yojana maturity benefits depend on the age of joining of the subscriber and the contribution made by him/her.
Atal Pension Yojana statement
If you are an existing subscriber of the APY, make sure to check your Atal Pension Yojana statement. The Atal Pension Yojana statement includes the records of the monthly, quarterly, and half-yearly contributions that you have made till date. You can also check your nominee name, the evaluated pension amount, name, and many more things.
Why should you check your APY statement?
The contributions made in the APY qualify for tax deductions. You are able to get a maximum tax exemption of 10% of the total income as per the Sec 80CCD (1) of the Income Tax Act, 1961. To avail of the benefits, you must keep your Atal Pension Yojana statement ready. You will need to show the document along with your PRAN and bank account details to avail of great benefits.
Frequently Asked Questions
1. What is a pension?
Pension gives financial support in old age when people are not able to earn.
2. What is Atal Pension Yojana(APY)?
Atal Pension Yojana (APY) is a scheme for the citizens of India or people who work in the unorganized sector.
3. How much pension will be provided to the subscribers under the APY scheme?
After the age of 60 they promised to get Rs.1,000/- or 2,000/- or 3,000/- or 4,000/- per month.
But it has a condition which all have to follow. The pension they get is from their own money which they have already paid when they are working.
4. Who can subscribe to the APY scheme?
Any citizen of the country can subscribe to this scheme between the age of 18-40 years. Subscribers should have bank account/post office savings bank account.
5. Can I open an APY account without having a savings account?
No, if you do not have a Bank account/post office saving bank account you aren’t able to open an APY account.
6. What is the mode of contribution to the account?
The subscribers can contribute monthly/quarterly/ half-yearly intervals through the auto-debit facility from the saving bank account/post office saving account.
The contribution depends upon the desired monthly pension and the age of the subscriber at entry.
7. Is it compulsory to add a nominee?
Yes, it is compulsory to provide nominee details in the APY account. When the subscriber has married automatically their nominee will be their spouse.
If the subscriber not married they have to nominate any person but when he/she gets married their spouse becomes the nominee.
8. How many accounts can I open in APY?
You can open only one account because APY did not permit the creation of another account.
Final Thought
APY is a pension scheme mainly focused at the unorganized sector workers. The objective of APY scheme is to provide a sense of security in the form of pension to the unorganized sector workers. The pension amount which an individual will receive is dependent on the monthly contributions they decide to pay and their age. The APY scheme is regulated and controlled by the Pension Funds Regulatory Authority of India (PFRDA).
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