GUIDELINES
Details : Atal Pension Yojana (APY) is an old age income security scheme for all the savings account holder between age group 18-40. The scheme also address the longevity risks among the workers in unorganized sector and encourages the workers to voluntarily save for their retirement.
Focus of APY
The scheme is mainly targeted at unorganized sector workers.
APY Subscriber Contribution Chart -
https://www.npscra.nsdl.co.in/nsdl/scheme-details/APY_Subscribers_Contribution_Chart_1.pdf
Penalty for default
Under APY, the individual subscribers shall have an option to make the contribution on a monthly basis. Banks will be collecting additional amount for delayed payments, such amount will vary from minimum Rs. 1 per month to Rs 10/- per month as shown below:
• Rs. 1 per month for contribution upto Rs. 100 per month.
• Rs. 2 per month for contribution upto Rs. 101 to 500/- per month.
• Rs. 5 per month for contribution between Rs 501/- to 1000/- per month.
• Rs. 10 per month for contribution beyond Rs 1001/- per month.
The fixed amount of interest/penalty will remain as part of the pension corpus of the subscriber.
Discontinuation of payments of contribution amount shall lead to following
• After 6 months account will be frozen.
• After 12 months account will be deactivated.
• After 24 months account will be closed.
Raising Grievance Under APY:
Subscriber can anytime raise grievance free of cost and from anywhere by visiting: www.npscra.nsdl.co.in >>Home >> select: NPS-Lite or through CGMS
Helpline Number - Toll Free Helpline number for APY Scheme is 1800-110-069
Benefits : -
Upon exit on attaining 60 years
The subscriber shall receive the following three benefits on attaining the age of 60:
(i) Guaranteed minimum pension amount: Each subscriber under APY shall receive a guaranteed minimum pension of Rs. 1000 per month or Rs. 2000 per month or Rs. 3000 per month or Rs. 4000 per month or Rs. 5000 per month, after the age of 60 years until death.
(ii) Guaranteed minimum pension amount to the spouse: After the subscriber’s demise, the spouse of the subscriber shall be entitled to receive the same pension amount as that of the subscriber,until the death of the spouse.
(iii) Return of the pension wealth to the nominee of the subscriber: After the demise of both the subscriber and the spouse, the nominee of the subscriber shall be entitled to receive the pension wealth, as accumulated till age 60 years of the subscriber.
Contributions to the Atal Pension Yojana (APY) is eligible for tax benefits similar to the National Pension System (NPS) under section 80CCD(1)
Voluntary exit (Exit before 60 Years of age):
The subscriber shall only be refunded the contributions made by him to APY along with the net actual accrued income earned on his contributions (after deducting the account maintenance charges). However, in case of subscribers who joined the scheme before 31st March 2016 and received Government Co-Contribution shall not receive the Government co-contribution and the accrued income earned on the same, if opted for Voluntary exit before 60 years.
For death before 60 years
Option 1: In case of death of the subscriber before 60 years, option will be available to the spouse of the subscriber to continue contribution in the APY account of the subscriber, which can be maintained in the spouse’s name, for the remaining vesting period, till the original subscriber would have attained the age of 60 years. The spouse of the subscriber shall be entitled to receive the same pension amount as the subscriber until death of the spouse. Such APY account and pension amount would be in addition to even if the spouse has his/her APY account and pension amount in own name.
Option 2: The entire accumulated corpus till date under APY will be returned to the spouse / nominee.
Eligibility : -
Age of joining and contribution period
The minimum age of joining APY is 18 years and maximum age is 40 years. The age of exit and start of pension would be 60 years. Therefore, minimum period of contribution by the subscriber under APY would be 20 years or more. All bank account holders under the eligible category may join APY with auto debit facility to accounts.
Exclusions
Tax Payers will not be eligible to Join APY from 1 oct, 2022.
If a subscriber of the plan who enrolled on or after October 1, 2022, is later discovered to have paid income taxes on or before the date of application, the APY account will be terminated, and the member will be granted the total amount of pension wealth accrued up to that point, per the order.
Members of statutory social security scheme are not eligible under this scheme.
Statutory social security scheme
1. Employees’ Provident Fund and Miscellaneous Provision Act, 1952.
2. The Coal Mines Provident Fund and Miscellaneous Provision Act, 1948.
3. Assam Tea Plantation Provident Fund and Miscellaneous Provision, 1955.
4. Seamens’ Provident Fund Act, 1966.
5. Jammu Kashmir Employees’ Provident Fund and Miscellaneous Provision Act, 1961.
6. Any other statutory social security scheme.
Application Process(Online) : -
Process 1: One can also open an APY account online using one's bank's Net banking facility. The applicant can login into his/her internet banking account and search for APY on dashboard.Customer has to fill some basic and Nominee details.Customer has to give consent of auto debit of premium from the account and submit the form
Process 2: Visit website “https://enps.nsdl.com/eNPS/NationalPensionSystem.html “ and select “Atal Pension Yojana”.
Select “APY Registration”
Fill the basic details in the form. One can complete KYC through 3 options –
1. Offline KYC – Where one has to upload XML file of Aadhaar
2. Aadhaar – Where KYC is done through OTP verification on Mobile Number register with Aadhaar
3. Virtual ID – Where Aadhaar virtual ID is created for KYC. Citizen can select either one of three options.
Once the basic details are filled, an acknowledgement number is generated. Citizen then has to fill personal details and decide the pension amount he/she wants after 60 years. The Citizen here also has to decide the frequency of contribution for scheme. Once Citizen “confirms” for personal details, he/she then has to fill nominee details. After submitting the personal and Nominee details, Citizen is redirected to NSDL website for eSign. Once Aadhaar is OTP verified Citizen gets successfully registered in APY.
Application Process(Offline) : -
1. For closure of APY accounts a duly filled “Account Closure Form (Voluntary Exit) form” and other relevant documents is to be submitted to the concerned APY-Service Provider branch.
2. The form is available at: www.npscra.nsdl.co.in>>Home>>Atal Pension Yojana>>Forms>>Withdrawal Form>>Voluntary exit APY withdrawal form.
3. The form can also be collected from APY-Service Provider branch as well.
4. Subscriber should not close the savings bank account linked with APY account even though the APY account gets closed because the closure proceeds which the subscriber will receive on the premature exit is transferred into the APY linked savings bank account and closure of this account may create problem in transfer of closure proceeds.
Documents Required : -
1. Aadhaar Card
2. Active Bank/Post office savings Account Details
