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What is Atal Pension Yojana and How to Open Account

At present, beneficiaries can withdraw up to Rs 2 lakh from their NPS account

At present, beneficiaries can withdraw up to Rs 2 lakh from their NPS account

The scheme, which was introduced in 2015, is a replacement of the Swavalanmban Yojana NPS Lite scheme. Under this, only Indian citizens that fall under the age group of 18 to 40 years are eligible to apply.

The Atal Pension Yojana is a guaranteed pension scheme by the government to provide financial security to those employed in the unorganised sector like maids, drivers, gardeners, among others.

The scheme, which was introduced in 2015, is a replacement of the Swavalanmban Yojana NPS Lite scheme. Under this, only Indian citizens that fall under the age group of 18 to 40 years are eligible to apply. APY is administered by the Pension Regulatory and Development Authority (PFRDA). The subscribers of the scheme are entitled to a pension ranging from Rs 1000 to Rs 5000 every month.

For those who joined the scheme before end of December 2015, the central government promised to co-contribute 50 percent of the total prescribed contribution by an account holder or up to Rs 1000 per annum. The monthly contribution depends on the fixed amount of monthly pension you want and the age when you start contributing. The pension begins at the age of 60 years.

The APY allows the subscribers to increase or decrease their pension amount one a year. The premium is calculated depending on the age at which one begins. For instance, if you register at 18 years the monthly contribution will be Rs 42 while the contribution will increase to Rs 291 if you register at the age of 40.

Once the accumulation begins, a worker cannot prematurely exit the scheme. However, in case of death, the spouse will be entitled for the same amount of pension at 60 years of age. If a beneficiary passes away before 60 years, then the spouse will have a choice to exit the scheme or to claim the amount.

Post offices and all national banks are entitled to the APY scheme. To avail the benefits one needs to be an Indian citizen, have an Aadhaar number and a valid bank account. You can visit your bank physically to register for APY.

The forms are also available online. You can download the form and submit the duly filled form with our bank. A confirmation SMS in this regard will be sent on your registered number. Internet users can enrol for APY by directly using net banking and choose an auto debit facility.

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first published:December 20, 2020, 09:40 IST