On June 1, 2015, our country’s Prime Minister, Shri Narendra Modi, launched the Atal Pension Yojana. The Atal Income Yojana is for persons who desire to save a little amount of money for a set pension when they retire mainly daily wage earners that are unable to save. Its benefits are also available to people who work in the private sector and are not taxpayers or members of any other social security plan. All eligible family members can join APS in their names to receive increased pension benefits for their families. Read below to check the detailed information related to the Atal Pension Yojana 2022 (अटल पेंशन योजना) like Highlights, Objectives, Features and Benefits, Eligibility Criteria, Application Procedures, and much more.
Atal Pension Yojana 2022 (अटल पेंशन योजना)
The candidate who applies for this program will be required to deposit the premium every month. The Pension Fund Regulatory and Development Authority (PFRDA) is in charge of the scheme’s whole functioning. After that, when the applicant reaches the age of 60, financial aid in the form of a monthly pension in old age would be supplied. Beneficiaries must be between the ages of 18 and 40 to apply for the Atal Pension Yojana, and only then will they be eligible to participate. If a beneficiary is 18 years old and wants to join this scheme, he will have to pay a monthly premium of Rs 210, and those who are 40 years old will have to pay a monthly premium of Rs 297 to Rs 1,454. Beneficiaries will receive a pension ranging from Rs 1000 to Rs 5000 after they reach the age of 60 under this scheme.
Highlights of Atal Pension Yojana (अटल पेंशन योजना)
|Scheme Name||Atal Pension Yojana|
|Initiated By||central government|
|Introduced by||Prime Minister, Shri Narendra Modi|
|Introduced on||June 1, 2015|
|Conducting Authority||Pension Fund Regulatory and Development Authority|
|beneficiary||People from the unorganized sectors of the country|
|Objective||to provide pension|
|Age Limit||18 years – 40 years|
|Exit Age||60 years|
|Pension Amount||Up to Rs.5,000|
|Contribution Period||Minimum 20 years|
Objectives of अटल पेंशन योजना
The main objectives of this scheme are as follows:
- This program is primarily focused on the country’s unorganized sector.
- Security and protection of people from illness, accidents, and diseases, among other things
Benefits of Atal Pension Yojana
Some of the key benefits and features of the scheme are as follows:
- The Indian government assures that an individual would get a minimum pension after retirement.
- Individuals who make contributions to the Atal Pension Yojana are eligible for tax benefits under Section 80CCD.
- When people attain the retirement point of 60, they will begin to receive a pension.
- The APY scheme is open to anybody with a bank account.
- Employees in the private sector who do not receive any pension benefits are also eligible to register for the Atal Pension Yojana scheme.
- Once you reach the age of 60, you can choose between a fixed pension of Rs.1,000, Rs.2,000, Rs.3,000, Rs.4,000, or Rs.5,000.
- If you die while the program is still active, your spouse has the option of claiming the contributions or continuing the scheme.
Applicants who want to apply for the Atal Pension Yojana must fulfill the eligibility criteria put forward by the Pension Fund Regulatory and Development Authority, Government of India. The eligibility criteria for Atal Pension Yojana are as follows:
- The applicant must be a citizen of India.
- Applicants must be between the ages of 18 and 40
- A genuine bank account number must be connected to your Aadhaar number.
- All ‘Know Your Customer’ information must be submitted.
- The applicant must have a working phone number.
- You must not already have an APY account.
Contribution Chart for the Atal Pension Yojana
If you want to invest in the Atal Pension Yojana every month, you must donate according to the table below. The monthly contribution amount is determined by your entrance age and the monthly income you seek after retirement.
|Age at Entry (Years)||Total Years of Contribution||Required Monthly Contribution Amount|
|Monthly Pension of Rs. 1000||Monthly Pension of Rs. 2000||Monthly Pension of Rs. 3000||Monthly Pension of Rs. 4000||Monthly Pension of Rs. 5000|
Atal Pension Yojana (APY) Investment plan
The Atal Pension Yojana (APY) offers guaranteed returns. The following are the several components wherein your money is invested:
|Investment Type||Quantum of Investment|
|Government Securities||45% to 50%|
|Term deposits of banks and debt securities||35% to 45%|
|Equity and equity-related instruments||5% to 15%|
|Money Market Instruments||Up to 5%|
|Asset-Backed Securities and so on||Up to 5%|
Steps to Apply for Atal Pension Yojana
Applicants need to follow the below-given steps to apply for the scheme
- First of all, the form must be addressed to the Branch Manager. Calling or visiting the bank will provide you with the name of your Branch Manager.
- Enter the name of your bank and the location of your branch.
- Now, fill in the form with all the required details in the BLOCK letters like
- Bank details: bank account number, bank name, and bank branch
- Personal details: full name, date of birth, Age, Mobile Number, Email address and Aadhaar number, Status of marriage, Spouse name and Aadhar number, Nominee’s name, and Aadhar number, etc.
- Additional details in case Nominee is a Minor: Date of Birth, Guardian Name, Whether Income Tax Payer, etc.
- Pension details: Frequency of Contribution, Pension Amount
- Declaration and Authorisation by all Subscribers: Date, Place, Signature, or Thumb impression of the subscriber.
- Now, review and recheck the application form to avoid any mistakes.
- Finally, submit the application form to the concerned authorities.
Procedure for Withdrawing from the Atal Pension Yojana
The Atal Pension Yojana withdrawal method has been slightly modified, as it previously did not allow quitting before reaching the age of 60.
- If you reach the age of 60, you can leave this arrangement and get a full annuitization of your pension. You’ll need to go to the bank and fill out an application for your pension.
- Only extreme circumstances, such as terminal sickness or death, allow you to leave the program before reaching the age of 60. Your spouse will get your pension if you die before attaining the age of 60. If both you and your spouse have passed away, the pension will be paid to your nominee.
Penalty Charges for the Atal Pension Yojana
- In the event of late payments, the following (APY) penalty costs will be assessed monthly:
- If you contribute up to Rs. 100 every month, you will be charged a penalty of Rs. 1.
- If your monthly payment is between Rs. 101 and Rs. 500, you will be fined a penalty of Rs. 2.
- For donations between Rs. 500 and Rs. 1, 000 each month, a penalty of Rs. 5 would be charged.
- If you pay more than Rs. 1001 every month, you will be assessed a penalty of Rs. 10.
- The APY penalty costs will be a predetermined sum based on the amount of the pension.
- If payments are halted, the following points apply:
- The account will be suspended if no payments are made for six months.
- If no payments are made for 24 months, the APY account will be canceled.
- If no payments are made for 12 months, the account will be canceled.