Atal Pension Yojana – APY Scheme Eligibility & Benefits
With the successful implementation of the Pradhan Mantri Jan Dhan Yojana and the inclusion of a large population in the banking benefits of opening a zero balance account with the continuation of the Jan Dhan Yojana, our honourable Finance Minister Mr Arun Jaitley enacted and passed the Atal Pension Yojana ("APY") in the Union Budget of 2015-16.
What is Atal Pension Yojana?
The Atal Pension Yojana is a pension scheme aimed largely at the unorganised sector, such as maids, gardeners, and delivery boys.This plan replaced the earlier Swavalamban Yojana, which was not well received by the public.
The scheme's purpose is to provide security by ensuring that no Indian citizen needs to worry about illness, accidents, or illnesses in old age. Employees in the private sector or those working for a company that does not give pension benefits may also apply for the plan.
When you reach the age of 60, you have the choice of receiving a fixed pension of Rs 1000, Rs 2000, Rs 3000, Rs 4000, or Rs 5000. The pension will be calculated using the individual's age and contribution amount. When the contributor dies, his or her spouse can collect the pension, and the nominee will get the accumulated corpus if both the contributor and his or her spouse die. If the contributor dies before reaching the age of 60, the spouse has the choice of exiting the plan and claiming the corpus or continuing the programme for the remaining duration.
The funds collected under the programme will be administered by the Pension Funds Regulatory Authority of India ("PFRDA") in accordance with the investment pattern established by the government of India.
The government will also pay a co-contribution of 50% of the entire contribution, or Rs. 1000 per annum, whichever is less, to all qualified subscribers who joined between June and December 2015 for a period of 5 years, i.e., from 2015-16 to 2019-20. To be eligible for the government's co-contribution, subscribers must not be enrolled in any other statutory social security schemes (for example, employee's provident fund) or pay income taxes.
Eligibility for Atal Pension Yojana?
To get benefits from the Atal Pension Yojana, you must meet the following criteria:
You must be an Indian citizen.
To be eligible, you must be between the ages of 18 and 40.
Contributions should be made for a minimum of 20 years.
You must have a bank account connected to your Aadhar card.
A valid mobile phone number is required.
Those who are now receiving benefits under the Swavalamban Yojana will be automatically transferred to the Atal Pension Yojana.
The plan is provided by all nationalised banks. You may open an APY account at any of these institutions.
Forms for the Atal Pension Yojana are available online as well as at the bank.The form may be downloaded from the official website.
English, Hindi, Bangla, Gujarati, Kannada, Marathi, Odia, Tamil, and Telugu are among the languages supported.
Fill up the Application form and present it in your bank.
Provide a valid mobile phone number if you haven't already.
Please provide a photocopy of your Aadhaar card.
When the application is approved, you will receive a confirmation message.
Monthly Contributions
The amount of your monthly payment is determined by the amount of pension you wish to receive upon retirement as well as the age at which you begin contributing. The chart below shows how much you need to contribute each year based on your age and pension plan.
APY – Monthly contribution
Important Facts to know about APY
If you fail to make your payments on time, you will be penalised. A penalty of Rs. 1 each month for contributions of Rs. 100 or less.
If you miss 6 payments in a row, your account will be frozen; if you miss 12 payments in a row, the account will be terminated and the remaining money will be given to the subscriber.
APY Frequently Asked Questions ( Atal Pension Yojana )
Can I apply for APY online?
No, there are presently no provisions for applying for APY online. You must go to your bank and fill out the necessary paperwork.
What papers are needed to apply for the APY Scheme?
Fill out the form and provide a photocopy of your Aadhar Card to apply for the APY scheme. There are no extra documents necessary.
How will I know whether the pension plan has been activated?
When the pension programme is launched, you will receive an SMS alert on your registered cellphone number.
When is the deadline for joining the Atal Pension Yojana Scheme?
There is no deadline to join the Atal Pension Yojana Scheme. To participate in the plan for the upcoming year, submit your application by June 1st. Every year on June 1st, the plan is refreshed.
What are the minimum and maximum ages to participate in this scheme?
The legal drinking age is 18 years old. College students are also eligible for the programme. The maximum allowed age is 40 years. This is due to the fact that the minimum contribution duration is 20 years. You will begin getting your pension when you reach the age of 60.
Is my money secure? Will the plan be altered if the government changes?
The Atal Pension Yojana programme is approved by the Indian Parliament during the budget session. The plan will not be terminated if the government changes, and your contribution remains secure. The only thing that successive governments can do is alter the name of the pension programme.
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