Atal Pension Yojna (APY) : A Complete Guide

What is the Atal Pension Yojana?

The Atal Pension Yojana is a social security initiative launched by the Government of India which attempts to provide all Indian citizens with a consistent income beginning at age 60. Put simply, this pension scheme primarily targets individuals who are employed in the unorganised sector, including but not limited to gardeners, caretakers, and delivery boys. This scheme is regulated and controlled by the Pension Funds Regulatory Authority of India (PFRDA).

Providing a sense of security, the scheme’s primary objective is to ensure that no senior Indian citizen must be concerned about sudden illness, accidents, or chronic diseases. Applicants are not limited to the unorganised sector alone; those employed by organisations that do not offer pension benefits or those in the private sector are also eligible to participate in the scheme.

Geeky Takeaways:

• APY targets unorganised workers who lack access to established pension systems. Small business, farm, and informal labour workers are included.
• Subscribers receive a fixed pension amount at age 60. The subscriber’s contribution determines the pension amount, which is ₹1,000 to ₹5,000 each month.
• Atal Pension Yojana accepts 18–40-year-olds. Until 60, subscribers must contribute regularly. Contribution depends on pension amount and scheme entry age.
• Eligible subscribers get a fixed pension from the government. Members who join before December 31, 2015, and are not insured by a statutory social security programme can receive this co-contribution.
• The spouse of the subscriber is eligible for the same pension amount upon their death. The nominee receives the pension fortune if the subscriber and spouse die.

The scheme builds upon the established National Pension Scheme and replaces the formerly institutionalised Swavalamban Pension Yojana, which was met with limited public approval. Since the inception of the scheme in 2015, all accounts that were established were qualified to receive co-contributions from the Indian government for five years.

Objectives of Atal Pension Yojana

The primary objective of this pension scheme is to alleviate individuals from the basic financial responsibilities that arise during their retirement years through the promotion of early savings. The pension entitlement of an individual is directly proportional to the monthly contributions they opt to contribute to the pension fund and their age.

Monthly payouts shall constitute the recipients’ collected funds under the Atal Pension Yojana (APY). Pension benefits shall continue to be paid to the beneficiary’s spouse in the event of the beneficiary’s demise; if both beneficiaries are deceased, the beneficiary’s nominee shall receive the entire amount in a single lump payment.

Benefits of Atal Pension Yojana

1. Automated Payment: A fundamental benefit of the Atal Pension Yojana is the provision for automated withdrawals. A beneficiary’s pension accounts are linked to his or her bank account, and monthly contributions are deducted via direct debit. Therefore, subscribers to this programme are required to ensure that their accounts have adequate funds to support the automatic debit. Failure to do so will result in a penalty.

2. Facility to Increase Contributions: As previously stated, the pension eligibility amount earned at age 60 is dependent upon the individual’s contributions. Various types of contributions are rewarded by various pension amounts. Furthermore, it is possible that individuals will increase their pension account contributions in an effort to secure a greater pension amount later in the scheme, supported by a greater financial capacity. To facilitate this requirement, the government allows individuals to modify the capital amount annually through the ability to increase or decrease contributions.

3. Assurance of Pension Contributions: Depending on their monthly contributions, beneficiaries of the scheme may elect to receive a periodic pension of ₹1000, ₹2000, ₹3000, ₹4000, or ₹5000.

4. Restrictions by Age: Those who are between the ages of 18 and 40 are eligible to make an investment in the Atal Pension Yojana. As a result, college students can also contribute to the fund for their retirement by investing in this scheme. The minimum age requirement for participation in the programme is forty years; contributions to this scheme must have been made for a minimum of twenty years.

5. No Risk of Loss: The Indian government backs this pension programme, which is governed by the Pension Funds Regulatory Authority of India (PFRDA). As a result, individuals have no risk of loss because the government guarantees their pension.

6. Nominee Facility: If a beneficiary dies, his or her spouse becomes eligible for the scheme’s benefits. They can either close their account and receive the entire corpus as a lump sum, or they can choose to receive the same pension as the original recipient. In the event that both the beneficiary and his or her spouse die, the nominee is entitled to the entire corpus amount.

How to Apply for Atal Pension Yojana?

Under the Atal Pension Yojana, the initiation of a pension account can be initiated by any bank in India. The following are the detailed procedures required to apply for APY,

Step 1: Pay a visit to the bank branch located near your locality or where you have an account.

Step 2: Complete the application form with the necessary information.

Step 3: Include two photocopies of your Aadhaar card with your submission.

Step 4: Specify a valid mobile phone number.

Now you need to ensure that you maintain a sufficient balance to be deducted every month.

How to Download APY Form Documents?

The account opening form for the Atal Pension Yojana (APY) can be obtained through any of the following means,

1. You may obtain the form from the nearest branch office of any participating bank.

2. If available, the form can also be downloaded and printed from the official websites of the participating institutions.

3. The APY account creation form is available for download from the official website of the Pension Fund Regulatory and Development Authority (PFRDA).

What is the Monthly Contribution for the Atal Pension Yojana?

Monthly contributions are determined by the total fund amount and monthly pension desired, in addition to the age of the participant at the time of enrollment. The monthly contributions to the Atal Pension Yojana are detailed in the following table.

Age of Entry To The Scheme	Total Years of Contribution	Contribution in ₹ (Monthly Pension: ₹1000)	Contribution in ₹ (Monthly Pension: ₹2000)	Contribution in ₹ (Monthly Pension: ₹3000)	Contribution in ₹ (Monthly Pension: ₹4000)	Contribution in ₹ (Monthly Pension: ₹ 5000)
18	42	42	84	126	168	210
19	41	46	92	138	183	228
20	40	50	100	150	198	248
21	39	54	108	162	215	269
22	38	59	117	177	234	292
23	37	64	127	192	254	318
24	36	70	139	208	277	346
25	35	76	151	226	301	376
26	34	82	164	246	327	409
27	33	90	178	268	356	446
28	32	97	194	292	388	485
29	31	106	212	318	423	529
30	30	116	231	347	462	577
31	29	126	252	379	504	630
32	28	138	276	414	551	689
33	27	151	302	453	602	752
34	26	165	330	495	659	824
35	25	181	362	543	722	902
36	24	198	396	594	792	990
37	23	218	436	654	870	1087
38	22	240	480	720	957	1196
39	21	264	528	792	1054	1318
40	20	291	582	873	1164	1454

Who Can Apply for Atal Pension Yojana Scheme?

Individuals must meet the following qualifications in order to invest in the Atal Pension Yojana Scheme and earn a pension from it,

1. The applicant should be an Indian citizen.

2. The applicant should have a current mobile phone number.

3. Contributions must be made to the scheme for no less than 20 years.

4. They should be between the ages of 18 and 40 years old.

5. He or she must have a bank account connected to his or her Aadhaar number.

6. She will not be eligible for any other social assistance programme.

7. Individuals who have previously benefited from the Swavalamban Scheme are automatically qualified and thus moved to this scheme.

Who is not Eligible for Atal Pension Yojana Government Co-Contribution?

Beneficiaries covered by statutory social security plans are ineligible for government co-contribution under APY. Members of the following social security schemes, for example, would not be eligible for government co-contribution under APY:

1. Employees’ Provident Fund and Miscellaneous Provisions Act of 1952 (i).

2. The Coal Mines Provident Fund and Miscellaneous Provision Act of 1948 (ii).

3. Assam Tea Plantation Provident Fund and Other Provisions, 1955.

4. The Seamen’s Provident Fund Act of 1966.

5. The Jammu and Kashmir Employees’ Provident Fund and Miscellaneous Provisions Act of 1961.

How to Check the Status of APY Contribution?

These are the two methods for tracking your contributions from the comfort of your own home. If you are not comfortable with the internet option, you can use the offline approach, which is to visit the local bank office to learn about the funds invested in the programme. The NPS website indicates that you will receive frequent statements on your registered mobile number, but no time frame is given. It will be beneficial if you visit your nearest bank office to obtain your APY contribution statement. Before knowing about the account information, ensure that you have got your PRAN information, which was provided at the time of registration.

The primary ways of checking the APY balance are,

1. Going to the NPS Website

The following is the process for tracking the Atal Pension Yojana contribution via the NPS website:

Step 1: Visit https://www.npscra.nsdl.co.in/scheme-details.php for further information.

Step 2: Select the APY e-PRAN/Transaction Statement View option.

Step 3: Select one of the alternatives. To search with PRAN, click here. To search without PRAN, click here.

Step 4: If you select the first option, you will be prompted to provide your PRAN information. If you have forgotten your PRAN, you can verify your APY contributions by providing information such as subscriber name, bank account, and date of birth.

Step 5: You will be given two options: View or download the APY e-PRAN.After you’ve chosen your selection, enter the Captcha code and press the “Submit” button.

2. Installing the APY Mobile App

The following are the methods for tracking your APY contribution using a mobile app:

Step 1: Downloading the “APY and NPS Lite” mobile app makes it simple to view your APY account details.

Step 2: Simply input your PRAN information and click Login. After logging in, enter the OTP that was sent to your registered mobile number.

The scheme’s investment amount will be displayed on the homepage. You can also download the Atal Pension Yojana statement and examine your account details using the APY and NPS Lite apps.

Penalties for Late Payments in Atal Pension Yojana Scheme

Late payments will result in the following (APY) penalty costs being imposed on a monthly basis,

1. A penalty of ₹1 would be charged to contributions of up to ₹100 per month.

2. A ₹2 penalty will be applied if your monthly payment is between ₹101 and ₹500.

3. A ₹5 penalty would be levied for donations between ₹500 and ₹1,000 per month.

4. A ₹10 penalty will be imposed if you pay more than ₹1,000 each month.

Atal Pension Yojana Withdrawal Process

Despite the fact that the withdrawal method for the Atal Pension Yojana was initially limited to individuals aged 60 and above, it has undergone minor adjustments since then,

1. You may withdraw from this arrangement and receive a full annuitization of your pension upon reaching the age of 60. You must submit your pension application in person at the bank.

2. With the exception of critical situations such as death or terminal illness, early withdrawal from the programme prior to the age of 60 is strictly prohibited. You leave your pension to your spouse in the event of your demise prior to the age of 60. In the event that both you and your spouse die, your nominee will receive the pension.

Frequently Asked Questions (FAQs)

1. Is it possible to open an APY pension account without first having a savings account?

No, having an active savings account is required to start an APY pension account.

2. Is it necessary to provide a nomination while applying for the scheme?

Yes. Nominee information must be entered into the APY account. If the subscriber is married, the default nominee will be the spouse. Unmarried subscribers can nominate anybody else as a nominee, but they must give spouse information after marriage. The spouse and nominees’ Aadhaar data may be given.

3. How many APY accounts may I have?

A subscriber can only have one APY account, and it must be unique. Multiple accounts are not allowed.

4. Is it possible to raise or reduce the monthly contribution for a greater or lesser pension amount?

Yes, a subscriber can choose to reduce or enhance his or her pension amount once a year throughout the accumulation phase.

5. How can I contribute to my APY account if I change my address or city?

Contributions may be remitted by auto debit indefinitely, even if the contributor’s home or location changes.

6. What happens if a subscriber loses his or her citizenship?

The scheme is exclusively available to Indian citizens. As a result, in that situation, the APY account will be terminated, and the contribution will be repaid to the subscriber as previously stated in the case of voluntary exit before the age of 60.