APY – Atal Pension Yojana Benefits

Atal Pension Yojana is a pension scheme that focuses on helping the working poor have a steady income after retirement.

Atal Pension Yojana Information

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Pension AmountUp to Rs.5,000
Age Limit18 years – 40 years
Contribution PeriodMinimum 20 years
Exit Age60 years
APY - Atal Pension Yojana
APY – Atal Pension Yojana

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The Atal Pension Yojana (APY) scheme was announced by the Government of India in the 2015-2016 budget with the purpose of helping individuals who are working in the unorganized sector.

  • A pension of up to Rs.5,000 is paid per month
  • Tax benefits are provided
  • The Indian Government co-contributes towards the scheme
  • Risk-free scheme

Atal Pension Yojana scheme encourages them to save for their retirement. All operations of the scheme are handled by the Pension Fund Regulatory and Development Authority (PFRDA). The APY scheme is a voluntary scheme to save for retirement.

Objectives of Atal Pension Yojana

The main objective of the Atal Pension Yojana can be summed up as follows:

  • Provision of security and protection of citizens against illness, accidents, diseases, and so on.
  • This scheme is mainly aimed at the unorganized sector in the country.

How to Download the APY Form

You can avail the Atal Pension Yojana (APY) account opening form by using any one of the following methods:

  • You can collect the form from any nearby branch office of any participant bank.
  • You can download and get a print of the form from the official websites of the participant banks, provided they have the facility for the same.
  • You can download the APY account opening form from the official website of Pension Fund Regulatory and Development Authority (PFRDA).

Process to Apply for the Atal Pension Yojana

The below-mentioned steps must be followed to avail the benefits of the scheme:

  • All nationalised banks offer the APY scheme. Individuals can visit these banks to open an APY account.
  • The account opening forms are available online on the bank websites as well. Individuals can download the application form.
  • The application form is available in English, Telugu, Tamil, Odia, Marathi, Kannada, Gujarati, and Bangla.
  • The application form must be filled and submitted at the bank.
  • A valid mobile number should be provided.
  • Aadhaar card photocopy must be submitted.

Upon approval of your application, you will receive a confirmation message.

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How to Fill the Atal Pension Yojana Form?

Once you have procured the form for the Atal Pension Yojana Scheme, filling it is simple.

Step 1: Addressing the form

You have to address the form to the Branch Manager. You can find out the name of your Branch Manager by calling or visiting the bank. Enter your bank name and branch.

Step 2: Bank details

Fill the form in BLOCK letters. First, you are required to provide your bank details. Enter your bank account number, bank name and bank branch. This field is compulsory.

Step 3: Personal details

  • Tick the box that is applicable that indicates whether you are ‘Shri’, ‘Smt’ or ‘Kumari’. Tick ‘Shri’ if you are a male applicant. Tick ‘Smt’ if you are a married female applicant. Tick ‘Kumari’ if you are a single female applicant.
  • Married applicants must enter their spouse’s name.
  • Enter your full name, date of birth, and age.
  • Provide your mobile number, email address and Aadhaar number.
  • You can then nominate someone and state their relationship to you. A nominee will receive your contribution in case of your death.
  • If the nominee is a minor, you need to provide their date of birth and guardian’s name.
  • You must also state if the nominee has any other statutory social security schemes and if they are income taxpayers.

Step 4: Pension details

You can contribute towards your pension, between Rs.1,000 and Rs.5,000 with options in the form as Rs.1,000, Rs.2,000, Rs.3,000, Rs.4,000, and Rs.5,000. The box below titled; ‘Contribution Amount (Monthly)’ is to be left blank as the bank will fill that in after calculating the amount you have to pay every month to receive the pension.

The calculation will be based on your entry age. For example, for a pension of Rs.2,000, if your entry age is 25 years, you will have to pay Rs.151 per month.

Step 5: Declaration and Authorisation

You need to fill in the date and place. You can either sign the document or put a thumb impression. By signing the document, you declare that you meet the Atal Pension Yojana eligibility criteria, and that you have read and understood the terms and conditions of the scheme. You declare that all the information you have written is correct as far as you know. If any changes have to be made to the information provided, you will contact the bank immediately. You also declare that you do not have any account under NPS (National Pension System). You will be held liable for any false or incorrect information knowingly provided.

Step 6: To be filled in by the bank

The last section of the Atal Pension Scheme form, titled ‘Acknowledgement – Subscriber Registration for Atal Pension Yojana (APY)’ is to be filled in by the bank. It is an acknowledgment from the bank that they will subscribe to the Atal Pension Yojana Scheme for you. After you submit the form, the bank agent will fill it out.

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What Is the Investment Plan for the Atal Pension Yojana (APY)?

The returns for the Atal Pension Yojana (APY) are guaranteed. The different strands under which your money is invested are as follows:

Type of InvestmentQuantum of Investment
Government Securities45% to 50%
Term deposits of banks and debt securities35% to 45%
Equity and equity-related instruments5% to 15%
Asset Backed Securities and so onUp to 5%
Money Market InstrumentsUp to 5%

Contributions towards the Atal Pension Yojana

The monthly pension that you want to receive and your age when you start the scheme, the main factors that affect the monthly contribution towards Atal Pension Yojana. The table below shows the monthly contribution that an individual must make and the number of years the contribution must be made to receive a pension of Rs.1,000, Rs.2,000, Rs.3,000, Rs.4,000, or Rs.5,000:

Entry ageNumber of years of contributionsMonthly pension of Rs.1,000 and a return of corpus of Rs.1.70 lakh (Rs.)Monthly pension of Rs.2,000 and a return of corpus of Rs.3.40 lakh (Rs.)Monthly pension of Rs.3,000 and a return of corpus of Rs.5.10 lakh (Rs.)Monthly pension of Rs.4,000 and a return of corpus of Rs.6.80 lakh (Rs.)Monthly pension of Rs.5,000 and a return of corpus of Rs.8.50 lakh (Rs.)
18424284126168210
19414692138183228
204050100150198248
213954108162215269
223859117177234292
233764127192254318
243670139208277346
253576151226301376
263482164246327409
273390178268356446
283297194292388485
2931106212318423529
3030116231347462577
3129126252379504630
3228138276414551689
3327151302453602752
3426165330495659824
3525181362543722902
3624198396594792990
37232184366548701,087
38222404807209571,196
39212645287921,0541,318

Atal Pension Yojana Withdrawal Procedure

Although initially this scheme did not permit exiting before you reach the age of 60, the Atal Pension Yojana withdrawal procedure has been slightly modified:

  • If you have reached 60 years of age, then you can exit this scheme with a complete annuitization of the pension amount. You will have to visit the bank and apply for your pension.
  • You can exit the scheme before turning 60 years old only under exceptional circumstances such as terminal illness or death. In case of your demise before reaching the age of 60, your spouse will receive your pension. In the event that both you and your spouse have expired, the pension would be paid to your nominee.

Atal Pension Yojana Penalty Charges

In case of delayed payments, the below-mentioned (APY) penalty charges will be levied on a monthly basis:

  • Penalty of Re.1 will be levied in case of contributions of up to Rs.100 per month.
  • Penalty of Rs.2 will be charged in case of contributions between Rs.101 and Rs.500 per month.
  • Penalty of Rs.5 will be levied for contribution between Rs.500 and Rs.1,000 per month.
  • Penalty of Rs.10 will be charged in case of payments above Rs.1,001 per month.

Depending on the pension amount, the APY penalty charges will be a fixed amount.

In case there is a stoppage in payments, the below-mentioned points apply:

  • If there are no payments made for a duration of 6 months, the account will be frozen.
  • The account will be deactivated if there are no payments made for a duration of 12 months.
  • The APY account will be closed if payments are not made for a duration of 24 months.

Atal Pension Yojana Eligibility

The eligibility of Atal Pension Yojana are mentioned below:

  • You must be an Indian citizen.
  • You must be between the ages of 18 and 40 years.
  • You must have an active mobile number.
  • You must have a valid bank account number linked to your Aadhaar number.
  • You must submit all ‘Know Your Customer’ details.
  • You must not have an existing APY account.

Features & Benefits of the Atal Pension Yojana

The main features of the APY scheme are mentioned below:

  • The Indian Government guarantees the minimum pension that will be paid to the individual after retirement.
  • Under Section 80CCD, individuals are eligible for Atal Pension Yojana tax benefits for the contributions made towards the scheme.
  • All bank account holders are eligible to join the APY scheme.
  • Individuals will start receiving pension once they reach the age of 60.
  • Private sector employees who are not provided any pension benefits are also allowed to apply for Atal Pension Yojana scheme.
  • You have an option of receiving a fixed pension of Rs.1,000, Rs.2,000, Rs.3,000, Rs.4,000, or Rs.5,000 once you reach 60 years of age.
  • In case of your demise during the scheme, your spouse can either claim the contributions or complete the duration of the scheme.

FAQs on the Atal Pension Yojana

If I want to open an Atal Pension Yojana account, what is the procedure to be followed?
Fill the Atal Pension Yojana subscription form. Provide your Aadhaar number and a valid mobile number. Then submit the APY form to the bank and set auto-debits from your bank account. Ensure you have a sufficient balance in your account to make regular contributions.

Is it mandatory to submit the Aadhaar number while registering for this scheme?
It is not mandatory to provide the Aadhaar number while subscribing, but the Aadhaar card will be the primary KYC document required by banks to identify beneficiaries, nominees and the subscriber’s spouse.

Can I open an Atal Pension Yojana account without holding a savings account?
No, it is mandatory for the applicants to hold a savings bank account while applying for this scheme.

How is the due date for the monthly contribution decided?
The due date is decided based on the first deposit date.

Is it mandatory for subscribers to give a nomination when they join the Atal Pension Yojana scheme?
Yes, nominations are mandatory. The nominee details have to be provided along with spouse’s details while applying for the Atal Pension Yojana scheme. The Aadhaar details also have to be provided for the spouse and the nominee.

How many Atal Pension Yojana accounts can a subscriber open?
A single subscriber is allowed to open only one Atal Pension Yojana account, which will remain unique to them.

Can I join the Atal Pension Yojana scheme without holding an Aadhaar number?
When opening the Atal Pension Yojana account, an Aadhaar number is not required, but Aadhaar details would be needed for enrolling beneficiaries, spouses, and identifying nominees.

Can members of the Employees Provident Fund (EPF) enroll for the Atal Pension Yojana scheme?
Yes, Employees Provident Fund (EPF) Subscribers are also eligible to enrol for the Atal Pension Yojana scheme.

Can Atal Pension Yojana account holders enjoy any tax benefits from the scheme?
No, subscribers cannot get any tax deductions on the monthly contribution amount done under the Atal Pension Yojana scheme.

Can I change my monthly contribution amounts?
Yes, monthly contributions amounts can be decreased or increased once a year, during April, depending on your requirements.

How can I check my account balance?
You will receive periodic statements regarding the status of your accounts and the balance available. Instant information can be received through an SMS alert on the registered mobile number.

I have changed my city of residence; can I still make monthly contributions to my account?
Yes, you can continue to make monthly contributions to your account without any interruptions, as the amount is paid only through pre-set auto-debits.

What happens if I don’t have sufficient balance in my account to make my monthly contribution?
In case of insufficient balance in your account for making your monthly contribution, a penalty will be imposed.

What will happen to my account if I become an NRI?
Only Indian citizens are eligible to open an Atal Pension Yojana account. If you become an NRI, then the account will be closed. The accrued contribution amount will be given to you and this will be treated like a voluntary exit done before the age of 60.

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