70 mn enrolled in Atal Pension Yojana: Key features, eligibility explained

The Atal Pension Yojana (APY) is a social security initiative launched by the Government of India aimed at providing citizens with a reliable source of income post-retirement. This scheme aligns with the National Pension Scheme (NPS) framework and is designed to support individuals aged 60 and above.

Key features of the scheme

The government outlines several important features of the APY, making it an attractive option for many:

Guaranteed minimum pension: Subscribers are entitled to a guaranteed minimum monthly pension ranging from Rs 1,000 to Rs 5,000, depending on their contributions.

Early joining benefits: Joining the APY at a younger age allows subscribers to pay lower monthly premiums.

Flexible premium payment options: Subscribers can choose to pay their premiums monthly, quarterly, or half-yearly, depending on their financial situation.

Spouse continuation: In the event of a subscriber’s death before reaching 60, their spouse can either continue the subscription or withdraw the accumulated corpus.

Voluntary exit: Subscribers have the option to exit the scheme voluntarily and receive a refund of their contributions along with any accrued income.

Eligibility criteria for the APY

To join the APY, you must meet the following criteria:

Be an Indian citizen

Be aged between 18 and 40 years

Have a savings bank account with a bank or post office

Withdrawing from the Atal Pension Yojana

Initially, the APY required beneficiaries to wait until they reached 60 to withdraw funds. However, recent modifications by the government have introduced conditions for early withdrawals, such as in cases of terminal illness or death before reaching 60. If the account holder passes away, their spouse is entitled to the pension. If both the account holder and spouse are deceased, the nominee receives the pension.

For accounts that have become inactive due to non-payment, here’s what happens:

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  A non-payment period of six months results in the account being frozen.
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  After 12 months of non-payment, the account is deactivated.
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  If the non-payment period extends to 24 months, the account is closed.

How to apply for the Atal Pension Yojana

If you’re interested in applying for the APY, you can obtain the application form from participating bank branches or download it from the official websites of these banks or the Pension Fund Regulatory and Development Authority (PFRDA). The application process is straightforward and includes a few key steps:

1. Address the form:

Direct the form to the Branch Manager of your bank. You can find the specific name by contacting or visiting the bank. Clearly write down your bank’s name and branch.

 

2. Enter bank details:

Use block letters for clarity. Provide essential details like your bank account number, bank name, and branch name. This section is mandatory.

 

3. Provide personal information:

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  Indicate your title (Shri for males, Smt for married females, and Kumari for unmarried females) by ticking the appropriate box.
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  Married individuals should include their spouse’s name.Fill in your full name, date of birth, and age.
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  Include your mobile number, email address, and Aadhaar number.
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  Designate a nominee and specify your relationship with them, ensuring this person will receive your contributions in the event of your death.
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  If your nominee is a minor, mention their date of birth and the guardian’s name.
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  Declare whether the nominee is covered by any other statutory social security schemes and if they are an income taxpayer.

4. Specify pension details:

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  Choose your desired monthly pension amount, available options being Rs 1,000, Rs 2,000, Rs 3,000, Rs 4,000, or Rs 5,000.
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  Leave the ‘Contribution Amount (Monthly)’ section blank; the bank will calculate this based on your entry age.

5. Declaration and authorisation:

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  Enter the date and location at the bottom of the form.Sign or provide a thumb impression to certify that you understand the APY’s terms and conditions and that all provided information is accurate.
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  You also agree to inform the bank of any changes to your information and confirm that you do not have an account under the National Pension System (NPS). Providing false information can lead to liabilities.
  
   

6. Bank’s section:

The final part of the form is for bank use, titled ‘Acknowledgement – Subscriber Registration for Atal Pension Yojana (APY).’ After submitting your form, a bank official will complete this section, confirming your enrollment in the scheme.

First Published: Oct 09 2024 | 10:17 AM IST