Atal Pension Yojana, launched on 9th May 2015, is a Government of India pension scheme. The Atal Pension Yojana, basically, focuses on the unorganized sector workers. The Yojana encourages and enables the applicant to save for their retirement. Notably, the Atal Pension Yojana is administered by the Pension Fund Regulatory and Development Authority via NPS architecture.
The present article briefly explains various basics of the Atal Pension Yojana.
What is eligibility under Atal Pension Yojana?
All the citizen of India between the age of 18 years to 40 years having a savings bank account or post office savings account are eligible under Atal Pension Yojana.
The applicant should also provide Aadhaar number and mobile number. However, Aadhaar number is not mandatory for enrolment under Atal Pension Yojana.
What are the features and benefits of Atal Pension Yojana?
Features as well as benefits of Atal Pension Yojana are listed hereunder-
- It has very simple eligibility criteria. Accordingly, any bank account holder ageing between 18 years to 40 years are eligible to avail of the benefit under the scheme.
- Subscriber has an option to contribute on a monthly or quarterly or half-yearly basis.
- The subscribers are eligible for the tax benefit under section 80CCD of the Income Tax Act.
- It guarantees a minimum pension of INR 1,000 or INR 2,000 or INR 3,000 or INR 4,000 or INR 5,000 that will be paid after retirement. Such pension is paid after the age of 60 years.
- In case of premature death of the subscriber, the spouse has an option either to claim the contribution or complete the pending duration of the scheme.
- Subscriber can also voluntarily exit the scheme subject to certain prescribed condition.
What is the process to apply under Atal Pension Yojana?
Following easy steps are to be followed in order to apply under Atal Pension Yojana-
STEP 1 – All the nationalized banks offer the Atal Pension Yojana. The applicant needs to visit the bank to open an Atal Pension Yojana.
STEP 2 – Get the application form from the bank. One can even download the same online.
STEP 3 – Fill up the application form.
STEP 4 – Submit the application form to the bank along with documents like Aadhaar card etc.
What are the details to be provided while applying under Atal Pension Yojana?
Following are the list of details to be provided-
1. Bank details-
- Bank account number;
- Bank Name; and
- Bank Branch.
2. Personal details-
- Full name of the applicant;
- Date of Birth;
- Age;
- Mobile Number;
- Email ID;
- Aadhaar number;
- Marital status;
- Name and Aadhaar number of the Spouse;
- Name, Aadhaar number and relation of the Nominee; and
- Additional details like Date of Birth, Guardian’s Name, etc. in case of a minor nominee.
3. Pension details-
- Frequency of contribution i.e. monthly, quarterly or half-yearly; and
- Pension amount.
What is the withdrawal facility and procedure under Atal Pension Yojana?
The withdrawal facility and procedure are tabulated hereunder-
| Circumstance | Withdrawal facility and procedure |
| The age of Subscriber is above 60 years | Withdrawal of a complete annuitization of the pension amount is possible.
The Subscriber needs to simply visit the bank and apply for the withdrawal. |
| The age of Subscriber is below 60 years | Withdrawal is possible only under exceptional cases like terminal illness or death of the beneficiary.
The Subscriber/ nominee needs to simply visit the bank and apply for the withdrawal. |
What are the penalty charges under Atal Pension Yojana?
Penalty charges applicable under Atal Pension Yojana is tabulated hereunder-
| Particulars | Applicable penalty charges |
| In case of delayed payment |
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| In case of stoppage of payment |
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Can Income Tax payer apply for APY..