Atal Pension Yojana Know How To Avail It

by Arjit Chalmela Finance Student

The Atal Pension Yojana (APY) is a plan supported by the Government of India administered by the Pension Funds Regulatory Authority of India (PFRDA). It has been launched primarily to help the unorganised sector. It means household help, labourers, delivery staff, etc. working with private organisations that do not give pension benefits. They can benefit from this scheme.

The Atal Pension Yojana eligibility is such that they offer the option of receiving a fixed pension amount of INR 1,000, INR 2,000, INR 3000, INR 4,000 or INR 5,000 upon reaching the age of 60. The pension is agreed depending upon the age and contribution amount of an individual. The Government of India contributes 50 per cent of the total pension contribution or INR 1,000 per annum for all subscribers of APY scheme

Application process

All nationalised banks offer APY benefits. You can visit your nearest branch to open an APY account.
You can also avail the APY form online from the official website.
Besides English and Hindi, the APY form is available in regional languages such as Gujarati, Marathi, Tamil, Kannada, Telegu, Bengali and Odia.
Submit a correctly filled application form to your bank along with a photocopy of your Aadhaar card.
Be sure that you provide a valid and active phone number to your bank during the application.
You receive a confirmation message on the same number once your application has been approved.

How to start the pension?

Once you are 60 years old, you can submit a request to the bank to start your pension. In case of your death, your next of kin can collect your pension. In case of the death of both spouses, the nominee is entitled to the accrued amount. In case of your demise, before the age of 60, your spouse can seek the option of getting the payments for the balance period or withdraw from the scheme and claim the corpus.

Essential facts about Atal Pension Yojana Scheme

The payment towards APY is automatically debited from your savings account, so you need to have adequate balance in your account for the same.
In case of a non-payment, a penalty of INR 1 per month for every INR 100 is levied.
In case non-payment continues after six months, your account is frozen.
In case you do decide to close the scheme before the age of 60, you will not be entitled to receive the Government’s contribution amount or the interest accrued on it. You will only get your part of the contribution plus the interest you earned on it.

With a fixed pension post-retirement, Atal Pension Yojana has brought a security cover to all Indian citizens. It also encourages the habit of investment and savings.