Atal Pension Yojana: You might have heard about Atal Pension Yojana on the news. But are you actually aware of this initiative of the Government?
Previously known as Swavalamban Yojana, the Atal Pension Yojana is a pension scheme in India which is supported by the government and it is targeted at the un-organized sector. It was first mentioned in the Budget Speech of 2015 by the Finance Minister, Arun Jaitley. It was thus launched by Prime Minister Narendra Modi in Kolkata. This scheme was introduced because, until 2015, only 20% of India’s population had any kind of pension scheme, and this scheme aimed to increase this number.
Atal Pension Yojana
As per Atal Pension Yojana, Central Government would co-contribute 50% of the total contribution or Rs.1, 000 per annum, whichever is lower, for every contribution made to the pension fund, to each eligible subscriber account, for a span of five years. The minimum age of joining this scheme is 18 years and maximum age of joining is 40 years. Naturally, the age of exit and the start of pension services would be at 60 years of age. This is why a minimum period of contribution under APY by the subscriber would be 20 years or more.
The Aadhaar Card’s ID number is the primary “Know Your Customer or KYC” document for the identification of beneficiaries, first relations, spouses, and nominees to avoid disputes related to entitlement in the long-term. For proof of address, an individual needs to submit a copy of his or her ration card or bank passbook.
The subscribers of this Yojana are required to opt for a monthly pension from Rs.1000 to Rs.5000 and they have to ensure the payment of the stipulated monthly contribution regularly. As per the available monthly pension amount she subscribers can also opt to decrease or increase pension amount during the course of the accumulation phase. But, the option to switch is only provided once in a year – during the month of April.
Pradhan Mantri Jan Dhan Yojana
This scheme is linked to the accounts opened via the Pradhan Mantri Jan Dhan Yojana scheme and the contributions will be deducted automatically from there. Recently, the Centre has allowed even the small finance Banks to offer APY.
Looking back, Swavalamban Yojana was also a pension scheme targeted at the unorganized sector in India and was government-backed. This scheme administered by the Pension Fund Regulatory and Development Authority (PFRDA) Act 2013was applicable to all citizens in the unorganized sector whoever joined the National Pension Scheme (NPS).
Under this scheme, the Government of India contributed Rs.1000 per year to each NPS account opened in the span of 2010-11 and for the next three years too. The benefit of this Yojana was available only to people who joined the NPS with a minimum contribution of Rs.1000 and a maximum contribution of Rs.12, 000 per year. The Finance Minister announced this scheme in Budget 2010-11. It was funded by the Government of India grants.
Today, this scheme has been replaced with Atal Pension Yojana. To sum up, in APY all subscribing workers below the age of 40 are eligible for a pension of up to Rs.5000 per month upon the attainment of 60 years of age. (Atal Pension Yojana)
Atal Pension Yojana – Benefit of up to the Rs 10,000 (Jansuraksha.Gov.In)
Eligibility for Atal Pension Yojana:
There are many benefits with Atal Pension Yojana, you should fulfill the following requirements:
- The candidate should be an Indian.
- The candidate age is must be between 18-40.
- Candidate must make contributions of 20 years minimum.
- Candidates should have an Aadhar link bank account.
- Candidate should have a valid number of mobile.
Those who are benefits of the Swavalamban Yojana will automatically translate to an Atal Pension Yojana.
How to many steps apply for this scheme:
There are following steps of the APY Benefits:
- This scheme is provided by all of the nationalized banks. Then you can visit these any banks to starts the account of APY.
- The forms of the Atal Pension Yojana is available at the bank and the online websites. if you want these forms then you can download the form from the sites.
- The form was available in many languages are like Tamil, Telugu, Hindi, Odia, English, Bengali and Kannada, Marathi.
- After that, you can fill that form and submit to related banks.
- At that time you have a mobile number that is valid, and then you can provide that mobile number.
- As well as you can submit the photocopy of the aadhaar card.
- the approved the application then you will be sent a message of confirmation.
Important facts of APY:
you will be making periodic contributions since the automatically debited amount from the bank account of yours. You will need to sure that you have s balance of sufficient in your account each debit before.
- You will increase your premium at your will. You have just to visit your bank and talk to your manager and make the necessary changes.
- In case you will default on payments, then a penalty will for you. Rs. 1 per month penalty for every contribution is Rs. 100 and part there.
- In case you will default on your 6 months payment, your account will freeze as well as if the continues default 12 months, then the account will be closed otherwise the remaining amount will subscriber paid.
- There is no early withdraws allowed. Only in cases like terminal illness and death, the subscriber, or their nominee receives entire the amount back.
- On the occasion that you close this scheme 60 years before for another reason, then your only contribution interest earned will return. You will not eligible for the earned interest or co-contribution of the main government on the amount.
Who can join APY?
Any Indian Citizen can join this scheme. There are some eligibility criteria,
- The subscriber’s age must be between years of 18 – 40.
- They must have an account of saving banks or in the account of savings banks open. It is essential to have a bank account as contributions should auto-debited otherwise be taken every month automatically.
- They must have a valid mobile number and its details are to furnish to during registration to the bank.