Atal Pension Yojana- APY
Atal Pension Yojana, earlier known as Swavalamban Yojana, is a Government of India sponsored pension scheme for laborers and artisans working in the unorganized sector. Finance Minister Mr. Arun Jaitley proposed the APY scheme before the parliament during the 2015 Budget speech. Honorable Prime Minister Narendra Modi officially introduced it on 9th May 2015. More than 70% of India’s population doesn’t come under any pension scheme. Along with the API Scheme, Modi launched List of Central Government schemes. The APY scheme with the aim of providing pension benefits to those workers in the unorganized sector such as weavers, handloom workers, leather workers, plantation, etc. All the bank account holders with a valid Aadhaar card are eligible to participate in Atal Pension Yojana. For the Government employees, they also launched the National Pension Scheme to distribute the pensions.
Atal Pension Scheme
The Atal Pension Scheme (APY), is a pension scheme focused on the unorganized sector workers for the citizens of India. At the age of 60, under the age of 60 years, the minimum pension of 1,000/- or 2,000/- or 3000/- or 4000 or 5000/- per month guaranteed on the basis of the contribution made by the customer. Any citizen of India can join the APY scheme. The following eligibility criteria are:
Customer age must be between 18 to 40 years
A savings bank account should be in Post Office / Savings Bank
The prospective applicant can avail the Aadhaar and Mobile Number during the registration period for the convenience of getting updates from time to time in API account. However, the Aadhaar card is not mandatory for enrollment.
A pension provides a monthly income to people when they are not earning.
Potential earning income reduction with age
The rise of the nuclear family – the escape of the earning member
Increasing the cost of living
Rise in longevity
Fixed monthly income ensures a respectable life in old age
Government Subsidy Government Contribution
The co-contribution of the Government of India is available to those customers for the financial year 2015-16 to 2019-20 i.e. for 5 years included in this scheme during this period of June 1, 2015, to March 31, Are not included in the statutory and social security scheme and are not included in income taxpayers. Co-contribution of the Government After receiving the confirmation of payment of all installments for the year from the Central Record Agency, the eligible permanent retirement account pension number eligible by the Pension Fund Regulatory and Development Authority (PFRDA), the customer’s savings for the end of the financial year.
A maximum contribution of 50% of the total contribution in the bank account/post office savings bank account or a maximum contribution of Rs.1000 credited. By the way, the beneficiaries who fall under the statutory social security schemes are not eligible for the government’s co-contribution under the APY. For example, members of Social Security
Schemes under the following Acts may not be eligible for receiving the government’s co-contribution under the APY:
Employees Provident Fund and Miscellaneous Provisions Act, 1952
Coal mine provident fund and miscellaneous provisions act, 1948
Assam Tea Plantation Provident Fund and Miscellaneous Provisions, 1955
Sailor Provident Fund Act, 1966
J & K Employees Provident Fund and Miscellaneous Provisions Act, 1961
Any other statutory social security scheme
Benefits of APY
Under the Atal Pension Scheme, the minimum pension guaranteed by the government in this sense that if the actual return on pension contribution is reduced during the contribution period, such deficiency funded by the government. On the other hand, if the actual return on pension contributions is higher than the returns in the contribution period for the Minimum Guarantee Pension, then such additional benefits credited to the customer’s account so that the enhanced plan benefits the customers.
The government cooperates with each eligible customer, 50% of the total contribution or Rs.1000 per annum, which included in this scheme from June 1, 2015, to 31 March 2016, and which is applicable to any other social security scheme. Not the beneficiary and not the income taxpayer. The government’s co-contribution is given for 5 years from the financial year 2015-16 to 2019-20.
Currently, under the National Pension System (NPS), the customer is eligible for tax benefits for contributions and for investment returns. Apart from this, tax on the purchase price of the annuity is also not taxed on exit from NPS and only the subscriber’s pension income is considered part of the general income and the appropriate marginal rate applicable to the customer is applied. Similar tax treatment is applicable to AWA customers.
The process to open procedure account for opening API account
Contact the bank branch / post office where the person is a savings bank or if there is no account open a new savings account
Provide the bank / post office savings bank account number and fill the API registration form with the help of bank employees
Provide Aadhaar / Mobile Number It is not mandatory, but contributions can be provided for the convenience of communication.
For transfer of monthly / quarter / half yearly contribution, be sure to keep the necessary amount in Savings Bank Account / Post Office Savings Bank Account
The Contribution Method, How To Contribute And The Due Date Of Contribution
The contribution done through savings bank account / post office savings bank account through the auto debit facility on monthly / quarter / half-year intervals. Monthly / Quarterly / half yearly contribution depends on the desired monthly pension and the age of the customer at the time of admission. Contribution to the APY, any particular date of the month paid through Savings Bank Account / Post Office Savings Bank Account, in the case of monthly contribution, in the first month or in case of quarterly contributions, the first month of the quarter Any day or half-yearly contribution any day of the first month of the half month
In case of continuous defaults
Customers should keep adequate amounts to avoid any overdue interest for the due date delayed contribution to their savings bank accounts/post office savings bank account. Monthly / Quarterly / Half yearly contributions deposited on the first day of the month/quarter/ half year in Savings Bank Account / Post Office Savings Bank Account. However, if the customer’s savings bank account/post office savings bank account has the last insufficient balance of the last half / first half of the first quarter on the last day of the first month, then treated as a default and with delayed interest to contribute, the next Must have to pay in the month.
Banks charge 1 rupee per month for each delay of Rs. 100 per month for each delay monthly contribution. For delayed contribution to the quarter/half mode of contribution, the interest be recovered according to the overdue interest. The amount of outstanding interest accumulated in the form of part of the customer’s pension fund. More than one monthly /quarter/half year contribution taken on the basis of availability of funds. In all cases, contributions deposited along with the overdue amount, if any. This internal process of the bank. Recovery be done in accordance with the available funds in the account.
The deduction from the customers’ accounts for maintenance fees and other related fees deducted on a periodic basis. For those customers who have taken advantage of the co-contribution of the government, the amount of the account treated as zeros when the amount of maintenance charge, fees, and overdue interest is equal to the interest on the deduction from the customer fund and the government’s co-contribution account and hence Pure fund becomes zero. In this case, the co-contribution of the government given back to the government.
Procedure for the evacuation process from APY
Upon receiving the age of 60 years: –
At the end of 60 years, the customer concerned is more than the Guaranteed Minimum Monthly Pension or more monthly pension withdrawal. if the investment returns are higher than the guaranteed returns embedded in the returned APY. The same amount of monthly pension is payable to the spouse (default designated) on the death of the customer. Upon the death of both the nominated customer and the spouse, the eligible pension eligible for a refund of the money till the age of 60.
In the case of death of client due to any reason after the age of 60 years: –
In the case of death of the client, the same pension is payable to the spouse and on the death of both (customer and spouse) 60 years old The accumulated pension funds till the age refunded to the nominee.
Opting out before the age of 60: – If a customer, who has taken advantage of the government’s co-contribution under APY, wishes to voluntarily opt for the exit, then he only contributed by him in the APY. The contribution earned on contributions refunded after deducting the maintenance expenses of the account along with the net earned income. The government is co-contributing, and the income earned on the co-contribution of the government not be refunded for such customers.
Customer death before age 60: –
In case of death of client before 60 years, for the remaining period in the APY account, till the original customer gets 60 years old, the option of continuing in his name available to the spouse. The client’s husband or wife be entitled to receive the same pension amount on death which was payable to the customer.
Or, under the APY, the entire accumulated fund returned to the spouse/nominee.
Other important facts
It is mandatory to provide nomination details in this API account. If the client is married then the spouse named default. Unmarried customers can nominate any other person in the form of nominees, but after marriage, they have to provide the information of husband or wife. Information about the basis of the spouse and nominee can be provided.
A customer can open only one API account and it is unique. Multiple accounts are not allowed.
A customer can opt to increase or decrease the pension amount once a year.
Information from time to time communicated through SMS alerts regarding API activation, balance in the account, contribution credit etc to APY subscribers. The physical details of the account given once a year.
Annual physical details of APY also be provided to customers.
Contributions also transmitted through non-interruption through auto debt in case of change of residence/place.
The plan is only for the Indian citizen.
Customers can change the mode of the auto debit facility (monthly /quarter/half year) once in a year during the month of April.
Requirements for opening an APY account
- To enroll under APY, a worker must be within the age group of 18 to 40 years.
- This scheme goes on till subscriber reaches the retirement age of 60 years.
- APY subscribers can make monetary contributions to their account through APY login
- Contributions should follow the APY chart available on this website. The APY chart contains a complete list of monthly payments depending on the age of subscriber and the amount of pension expected at the age of 60.
- Monthly contributions under the APY scheme in the range of Rs. 42 to Rs. 1,454. Greater the monthly premium, Higher be the pension amount at maturity.
- Currently, the largest pension amount an APY account holder can get is Rs. 5000/- per month.
- To open an APY account, one must have a 12 digit unique Aadhaar card number provided to all Indian Citizens.
Other benefits under Atal Pension Yojana
- People can use the monthly contributions under the APY scheme for tax savings. They can even claim the premium amount paid in APY under section 80CCD. Current Limit for 80CCD tax exemption is rs 50 thousand.
- Guaranteed minimum pension starting from Rs. 1000 to Rs. 5000 per month after the age of 60.
- Low-income APY account holders not coming under any Income Tax Slab receive matching contributions from the Government of India. The matching contribution could be Rs. 1,000 every year or 50 % of the monthly contribution amount whichever is lower.
A list of online facilities available to APY subscribers through the Atal Pension Yojana login
- You can download the APY chart from the website, https://www.npscra.nsdl.co.in/scheme-details.php. It is very important in this scheme.
- Aadhaar feeding service for all APY account holders.
- For opening a new APY account, new subscriber registration form is available. You can download the withdrawal forms for taking funds out of the account.
- Using APY login, subscribers can view transactions related to their pension account. They can also request for APY statement.
- Subscribers can make monthly contributions to their account using Atal Pension Yojana SBI epay or Billdesk which includes some selected banks.
- Toll-free customer care number is available on the Atal Pension Yojana online
Atal Pension Yojana Scheme Website: https://www.npscra.nsdl.co.in/scheme-details.php
APY Scheme Contact Number: 022-2499 3499
Fax Number for APY Scheme: 022-2495 2594/2499 4974
Email ID: email@example.com
APY Head Office Address details
NSDL e-Governance Infrastructure Limited,
Kamala Mills Compound,
Senapati Bapat Marg,
Mumbai – 400013