Atal Pension Yojana (APY) is a government-backed pension scheme in India for people are working in the unorganized sector. The scheme was launched in 2015 and is open to all citizens of India between the ages of 18 and 40. Under this scheme, subscribers can contribute to a pension account and, upon reaching the age of 60, receive a fixed pension on a monthly basis. The government also contributes to the pension account to incentivize participation in the scheme. The Pension Fund Regulatory and Development Authority (PFRDA) administers the scheme.
Who can subscribe to APY ?
The Atal Pension Yojana (APY) is open to all citizens of India between the ages of 18 and 40 who are not already members of any statutory social security scheme. The scheme is targeted towards people working in the unorganized sector, such as small farmers, self-employed individuals, and those working in the informal economy.
Subscribers must have a savings bank account or open a new account with a bank or post office, and must provide their Aadhaar number at the time of registration. The scheme is also open to Non-Resident Indians (NRIs) but they should have an Aadhaar number issued in India and should be residing in India at the time of registration.
The scheme is voluntary and people who want to join must themselves or through their employer or Common Service Centre (CSC) or any other Point of Presence (POP) of PFRDA registered bank or post office.
What are the benefits of joining APY scheme?
There are several benefits to joining an APY (Atal Pension Yojana) scheme, including:
- Guaranteed pension: Members of the scheme are guaranteed a fixed pension of Rs. 1000, Rs. 2000, Rs. 3000, Rs. 4000, or Rs. 5000 per month, depending on their contributions.
- Government co-contribution: The government will also contribute a matching amount to the pension account of eligible subscribers, up to a certain limit.
- Tax benefits: Contributions to the scheme are eligible for tax deductions under Section 80CCD of the Income Tax Act.
- Affordability: The scheme is designed to be affordable for individuals from lower income groups, with low minimum contributions.
- Portability: The pension account under the scheme is portable across the country, so members can continue to receive benefits even if they move to another state.
- No exit load: The scheme allows to exit any time after the age of 60 with full pension.
- Spouse coverage: In case of death of subscriber, the spouse of the subscriber shall be entitled to receive 50% of the pension as family pension
- Life insurance coverage: The scheme also provides an insurance cover of Rs. 2 Lakhs in case of death of subscriber before the age of 60.
What is the procedure for opening APY Account?
To open an APY (Atal Pension Yojana) account, you will need to provide certain personal and identification information, such as your name, age, address, and Aadhaar number. You will also need to provide bank account details, including the account number and IFSC code.
You can open an APY account in any of the following ways:
- Visit a nearby Point of Presence-Service Provider (POP-SP) and fill out the application form.
- Submit the application form online at the National Pension System Trust (NPS Trust) website.
- Submit the application form and required documents through the Common Service Center (CSC) or a bank branch that offers APY services.
Once your application is received and processed, you will be assigned a Permanent Retirement Account Number (PRAN) and will be able to start making contributions to your APY account.
Note: The documents required for Atal Pension Yojana (APY) account may vary for different states.