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The Atal Pension Yojana came into effect as a replacement for Swavalamban Yojana, which didn’t collect many applications because it didn’t guarantee pension benefits at the age of 60. In this article, we shall look at the entire scheme of APY.
Table of Contents
It is a government-run pension scheme that offers pension benefits to all citizens of India, and its main focus is on the unorganized sector. The APY is administered by the Pension Fund Regulatory and Development Authority (PFRDA) under the National Pension System.
This scheme provides a guaranteed minimum monthly pension between 1000 rupees to 5000 rupees for the beneficiaries. The subscribers may choose a monthly pension, which can be 1000, 2000, 3000, 4000, or 5000 rupees on attaining 60 years of age.
It may be noted that the amount of pension received by an individual is directly related to the age at which he/she has joined APY and the monthly amount that is contributed.
The APY scheme focuses on providing benefits to the unorganized sectors such as house help, gardeners, etc. It seeks to provide security and protection to citizens from accidents, illnesses, or diseases.
An individual applying under this scheme must fulfill the following eligibility criteria:
Note: The individual enrolled under Swavalamban Yojana shall be migrated automatically under the APY scheme.
Some of the key features of the scheme include the following:
The following points may be known to open an APY account:
Under the scheme, the individual subscribers can be penalized for delayed contribution to the pension scheme. Banks will collect the additional amount for such delayed payments.
If you do not keep adequate account balance, then the following penalty can be charged:
In case of failure to make payments of contribution amount will lead to the following:
Note: It is noteworthy to mention here that periodical mobile alerts are sent to APY subscribers by banks to prevent late payment.
The Atal Pension Yojana provides a wide range of benefits to its subscribers, and these are mentioned below:
Upon the completion of the contribution term and on attaining the age of 60, you can contact your bank or post office where you enrolled under this scheme. Submit a request to the associated bank for drawing the guaranteed monthly pension.
Where the subscriber dies after attaining 60 years, the pension amount will be paid to their spouse. In case both subscriber and spouse die, the accumulated pension corpus shall be given to the nominee.
Read our article:What is the Procedure of PF Balance Check
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