Atal Pension Yojana (APY)

The Government of India has issued a pension scheme called Atal Pension Yojana (APY). It came into force on 1st June 2015, creating a social security system for citizens in the unorganised sector and other eligible individuals in India.

It is regulated by the Pension Fund Regulatory and Development Authority (PFRDA), with government collaboration and overall support of the National Pension Scheme (NPS). More than 2 crore citizens are registered under the Atal Pension Yojana in India. It is a flexible, well-thought-out scheme for the people of India to invest in SIP (Systematic Investment Planning).

Below are the features of the Atal Pension Yojana (APY):

• Periodic voluntary auto-debited contributions

• Voluntary savings for retirement

• The central government guarantees a minimum pension amount

• The pension amount is given to the spouse in case the account holder passes away

• In case both the account holder and spouse pass away, the corpus is paid to the nominee

• Quick access through banks

• Yearly amount and payment frequency changes provision.

Below are the benefits of Atal Pension Yojana

• Receive a pension amount of ₹ 1000, 2000, 3000, 4000 and 5000 depending on the contribution rate at the end of the contribution period i.e. after attaining the age of 60

• Simple registration process: APY scheme form, Bank account and only Aadhar card required

• Join early and pay less, as the periodic contributions are based on the age of entry and pension amount

• Reliable social security

• Available scheme at all public and private sector banks.

The eligibility criteria for Atal Pension Yojana are as follows:

• Must be a Citizen of India

• Must have a savings bank account

• Must have a minimum amount of contribution available for monthly pay-outs

• The age criteria range is from 18-40 years

• A minimum contribution period of 20 years is required

• As per the Government of India, income taxpayers are not eligible.

*As per the government notification, citizens who were paying or paid income tax as of 1st October 2022 are not eligible for this scheme. If you have subscribed to this scheme before 1st October 2022 you can continue contributing to this scheme as well as avail of benefits under section 80 under the old tax regime.

As you can see below this scheme promotes the, ‘Join early, pay less’ policy to motivate and engage the unorganised sector individual to ensure social security at an earlier age.

As you can see in the table above, your contribution amount is based on the range of pension ( from ₹1,000 to 5,000) after you become 60 years old. The subscriber must select a fixed pension amount. Later you will be provided with the respective payment amount and the debit frequency option.

If you select monthly frequency, it will auto-debit monthly, if you choose quarterly option it will auto-debit every three months and so on. When you reach the age of 60, you will be entitled to receive the monthly pension of your earlier selected amount. In case of the death of the account holder, the pension amount will be given to the spouse. Further, in case of the demise of both the account holder and spouse, the amount will be given to the nominee.

Below is the process to download the Atal Pension Yojana Form.

• Visit the official APY website - npscra.nsdl.co.in/scheme-details.php

• On the left-hand side click on the forms section

• Click on subscriber registration

• You can download the form in your preferred language.

There are two ways to open an Atal Pension Yojana account as below:

1. Online application process

• Visit the APY website - enps.nsdl.com/eNPS/ApySubRegistration.html

• Fill in the required details and generate a One-Time Password (OTP)

• Fill in the OTP and confirm the information

• Your registration is successfully done.

2. Through PoP-SP (Bank Branch/Post Office)

• Visit the bank where you have your savings account

• Submit the registration form printout along with the required documents - Registration form - npscra.nsdl.co.in/nsdl/forms/APY_Subscriber_Registration_Form.pdf

• The bank will process your requests within a few days.

You can change your APY Contribution amount with the help of the below steps:

• Visit the eAPY website

• Click on the forms section on the left-hand side

• Under the Subscriber maintenance heading, download the preferred form language which you are comfortable with

• Fill in the necessary details, tick the amount change section and select your revised payment amount.

It is necessary to note that the facility to change the amount and periodic payment can be used only once a year.

The Atal Pension Yojana Mobile application is developed and maintained by Protean eGOV Technologies Limited ( formerly known as NSDL e-Governance Infrastructure Limited). It is a quick and safe application for first-time as well as registered Atal pension Yojana users.

Below are the benefits of this application:

• User-friendly app

• KYNA: Chatbot for your questions

• New user registration option as well as existing user login feature

• Essential information on APY is available via the app

• Forms through the APY services icon are made available.

Withdrawal and existing rules are subject to a few conditions and criteria as per the APY scheme where voluntary exits are allowed under certain conditions.

1. Process after completion of the age of 60

• Submit the required documents and form to the bank/post office you have your account in

• Upon successful processing, the subscriber will receive a pension as per the earlier contribution bracket until death

• In case of the death of a subscriber post-60, the pension will be received by the spouse. In case of the death of both subscriber and spouse while receiving the pension. The nominee will receive the full accumulated amount till the age of 60.

2. Voluntary exit before the age of 60

• If you want to voluntarily exit before the age of 60, it is allowed under the scheme. The subscriber will receive his accrued income till the point of existence. However, account maintenance charges will be deducted from the same

• Here is the voluntary exit form for your reference- Voluntary exit form npscra.nsdl.co.in/nsdl/forms/Voluntary%20Exit_APY%20Withdrawal%20Form.pdf.

The Atal Pension Yojana is one of the essential social security schemes that the government has enabled since 2015. It is focused on unskilled labourers and unorganised sector citizens who work hard to meet their daily needs. This scheme is not for income taxpayers as per a notification of the government of India.

It is necessary to remember that exit is only allowed when you are 60 years old and then the pension begins in the domination of ₹ 1000, ₹ 2000, ₹ 3000, ₹ 4,000, ₹ 5,000. Also, no partial withdrawals are allowed under this scheme. The auto-debit facility is provided by default in this scheme, so it is necessary to maintain the minimum balance required to allow payouts. In case of non-payment due to insufficient balance, charges are applied by month and denomination of contribution.