FAQ on Atal Pension Yojana: Atal Pension Yojana is a government-backed pension scheme in India targeted at the unorganized sector. It was mentioned in the 2015 Budget speech by Finance Minister Arun Jaitley. Prime Minister Narendra Modi launched it on 9 May in Kolkata. Wikipedia. Now you can scroll down below n check more details for Queries Related to Atal Pension Yojana
A Pension provides people with a monthly income when they are no longer earning. Need for Pension:4
- Decreased income earning potential with age.
- The rise of nuclear family-Migration of earning members.
- Rise in the cost of living.
- Increased longevity.
Assured monthly income ensures dignified life in old age.
Atal Pension Yojana (APY), a pension scheme for India’s citizens, focused on the unorganized sector workers. Under the APY, a guaranteed minimum pension of Rs. 1,000/-, 2,000/-, 3,000/-, 4,000, and 5,000/- per month will be given at the age of 60 years, depending on the subscribers’ contributions.
Any Citizen of India can join the APY scheme. The following are the eligibility criteria,
i. The age of the subscriber should be between 18 – 40 years.
ii He / She should have a savings bank account/ open a savings bank account.
iii The prospective applicant should have a mobile number, and its details are to be furnished to the bank during registration.
Government co-contribution is available for five years, i.e., from 2015-16 to 2019-20 for the subscribers who join the scheme from 1st June 2015 to 31st December 2015 and are not covered by any Statutory Social Security Schemes and are not income taxpayers.
4. Who are the other social security schemes beneficiaries not eligible to receive Government co-contribution under APY?
Beneficiaries who are covered under statutory social security schemes are not eligible to receive Government co-contribution. For example, members of the Social Security Schemes under the following enactments would not be eligible to receive Government co-contribution:
- Employees’ Provident Fund & Miscellaneous Provision Act, 1952.
- The Coal Mines Provident Fund and Miscellaneous Provision Act, 1948.
- Assam Tea Plantation Provident Fund and Miscellaneous Provision, 1955.
- Seamen’s’ Provident Fund Act, 1966.
- Jammu Kashmir Employees’ Provident Fund & Miscellaneous Provision Act, 1961.
- Any other statutory social security scheme.
Guaranteed minimum pension of Rs 1,000/-, 2,000/-, 3,000/-, 4,000, and 5,000/- per month will be given at the age of 60 years, depending on the subscribers’ contributions.
In APY, Government will co-contribute 50% of the total contribution or Rs. 1,000/- per annum, whichever is lower, to the eligible APY account holders who join the scheme from 1st June 2015 to 31st December 2015. The Government contribution will be given for five years from FY 2015-16 to 2019-20.
7. How are the contributions of APY invested?
The contributions under APY are invested as per the Ministry of Finance’s investment guidelines, Government of India. The PFRDA/GOVERNMENT administers the APY scheme.
8. What is the procedure for opening APY Account?
- Approach the bank branch where individual’s savings bank account is held.
- Fill up the APY registration form.
- Provide Aadhaar/Mobile Number.
- Ensure keeping the required balance in the savings bank account for transfer of monthly contribution.
9. Whether Aadhaar Number is compulsory for joining the scheme?
It is not mandatory to provide Aadhaar number for opening APY account. However, For enrolment, Aadhaar would be the primary KYC document for identification of beneficiaries, spouse and nominees to avoid pension rights and entitlement related disputes in the long-term.
10.Can I open APY Account without savings bank account?
No. For joining APY, savings bank account is mandatory.
11.What is the mode of contribution to the account?
All the contributions are to be remitted monthly through auto-debit facility from savings bank account of the subscriber.
12.What is the due date for monthly contribution?
The due date for monthly contribution will be as per the initial date of deposit of contribution into APY.
13.What will happen if required or sufficient amount is not maintained in the savings bank account for contribution on the due date?
Non-maintenance of required balance in the savings bank account for contribution on the specified date will be considered as default. Banks are required to collect additional amount for delayed payments, such amount will vary from minimum Re 1 per month to Rs 10/- per month as shown below:
- Re. 1 per month for contribution upto Rs. 100 per month.
- Re. 2 per month for contribution upto Rs. 101 to 500/- per month.
- Re 5 per month for contribution between Rs 501/- to 1000/- per month.
- Rs 10 per month for contribution beyond Rs 1001/- per month.
Discontinuation of payments of contribution amount shall lead to following:
- After 6 months account will be frozen.
- After 12 months account will be deactivated.
- After 24 months account will be closed.
Subscriber should ensure that the Bank account to be funded enough for auto debit of contribution amount.
The fixed amount of interest/penalty will remain as part of the pension corpus of the subscriber
14.How much should I invest in APY to get the guaranteed pension of Rs. 1000?
All the contributions are to be remitted monthly through auto debit facility from savings bank account of the subscriber.
*For detailed age wise contribution refer Annexure 1.
15.Is it required to furnish nomination while joining the scheme?
Yes. It is mandatory to provide nominee details in APY account. The spouse details are also mandatory wherever applicable. Their aadhaar details are also to be provided.
16.How many APY accounts I can open?
A subscriber can open only one APY account and it is unique
17.Will there be any option to increase or decrease the monthly contribution for higher or lower pension amount?
The subscribers can opt to decrease or increase pension amount during the course of accumulation phase, as per the available monthly pension amounts. However, the switching option shall be provided once in year during the month of April.
18.What is the withdrawal procedure from APY?
A. On attaining the age of 60 years: The contributions of the subscriber and penal interest charged, if any, along with the interest accrued over the period the subscriber had been contributing to the scheme will be fully annuitized to from his / her pension corpus. Thereafter pension would be paid to the subscriber. He / she does not have the option to withdraw from the scheme thereafter
B. In case of death of the Subscriber due to any cause Before age of 60 Years: In case of death of subscriber the spouse can continue the scheme paying the same premium as was being paid by the original subscriber till the date of his / her attaining 60 years of age. Thereafter, she / he will start getting the pension amount.
In case of death of the Subscriber due to any cause after attaining the age of 60 Years (i.e. after pension is started): The spouse will get the pension amount as applicable. After the death of spouse the nominee will receive the corpus amount.
C. Exit Before the age of 60 Years: The subscriber may exit before attaining the age of 60 years. The subscriber is required to submit the APY Voluntary Exit Form to his / her base branch along with full details (IFSC Code, Savings Bank Account No etc.). The subscriber will be paid the amount accumulated in the PRAN account, being the total subscription amount deposited plus interest accrued thereto. The amount will be paid through NEFT by NSDL to the account of the subscriber. Therefore subscriber should be advised not close his / her Savings Bank account at the branch till such time the amount is received by him / her.
19. How will I know the status of my contribution?
The status of contributions will be intimated to the registered mobile number of the subscriber by way of periodical SMS alerts. The subscriber can also generate the statement online from NSDL website www.npslite-nsdl.com by giving his / her APY PRAN number in the link APY/NPSlite ePRAN. –SOT View for Subscriber.
20. Will I get any statement of transactions?
Yes. Periodic statement of APY account will be provided to the subscribers.
21. If I move my residence/city, how can I make contributions to APY account?
The contributions may be remitted through the auto debit uninterruptedly even in case of dislocation so long as the Savings Bank account at the base branch is kept funded. If necessary, the subscriber can get his Savings Bank account transferred to a branch close to his residence / city. This will not affect the auto debit facility.
22. What will happen to existing subscribers in Swavalamban Yojana?
- All the registered subscribers under Swavalamban Yojana aged between 18-40 yrs will be automatically migrated to APY with an option to opt out. However, the benefit of five years of Government Co-contribution under APY would be available only to the extent availed by the Swavalamban subscriber already. This would imply that if, as a Swavalamban beneficiary, he has received the benefit of government Co-Contribution of 1 year, then the Government co-contribution under APY would be available only for 4 years and so on. Existing Swavalamban beneficiaries opting out from the proposed APY will be given Government co-contribution till 2016-17, if eligible, and the NPS Swavalamban continued till such people attain the age of exit under that scheme.
- Other subscribers above 40 years who do not wish to continue may opt out of the scheme with lump sum withdrawal.
- Subscribers above 40 years may also opt to continue till the age of 60 years and eligible for annuities.
- The existing Swavalamban scheme may be automatically migrated to APY
Click Here to Check Tabular representation of Contribution