Atal Pension Yojana (APY) is a government-backed pension scheme launched by the Government of India in 2015. The scheme is aimed toward offering a gradual stream of revenue to Indian residents of their outdated age, significantly these working within the unorganised sector.
Under the Atal Pension Yojana, subscribers can contribute a sure sum of money on a month-to-month, quarterly, or yearly foundation, relying on their comfort.
The contributions are then invested in a pension fund managed by the Pension Fund Regulatory and Development Authority (PFRDA). The quantity of pension acquired by the subscriber at retirement is decided by the contributions made and the returns earned on these contributions.
The scheme is open to all Indian residents between the ages of 18 and 40 years. From October 01, 2022, any citizen who’s or has been an income-tax payer, just isn’t eligible to hitch APY.
The pension quantity ranges from Rs. 1000 to Rs. 5000 per 30 days, relying on the contributions made by the subscriber. In the occasion of the subscriber’s demise, the pension quantity is transferred to the nominee.
Need for Pension:
- Decreased revenue incomes potential with age.
- The rise of nuclear household
- Migration of incomes members.
- Rise in price of residing.
- Increased longevity.
- Dignified life in outdated age on account of much less monetary dependence.
Atal Pension Yojana
- The Atal Pension Yojana (APY) was launched to create a common social safety system for all Indians, particularly the poor, the under-privileged and the employees within the unorganised sector.
- APY is open to all checking account holders within the age group of 18 to 40 years and the contributions differ, primarily based on the pension quantity chosen. Provided that from October 01, 2022, any citizen who’s or has been an income-tax payer, shall not be eligible to hitch APY
- Subscribers would obtain the assured minimal month-to-month pension of Rs. 1000 or Rs. 2000 or Rs. 3000 or Rs. 4000 or Rs. 5000 on the age of 60 years.
- The month-to-month pension can be accessible to the subscriber, and after him to his partner and after their demise, the pension corpus, as amassed at age 60 of the subscriber, can be returned to the nominee of the subscriber.
- In case of untimely demise of subscriber (demise earlier than 60 years of age), partner of the subscriber can proceed contribution to APY account of the subscriber, for the remaining vesting interval, until the unique subscriber would have attained the age of 60 years.
The minimal pension can be assured by the Government, i.e., if the amassed corpus primarily based on contributions earns a decrease than estimated return on funding and is insufficient to supply the minimal assured pension, the Central Government would fund such inadequacy. Alternatively, if the returns on funding are larger, the subscribers would get enhanced pensionary advantages.
- Subscribers can contribute to APY on a month-to-month/ quarterly / half-yearly foundation.
- Subscribers can voluntarily exit from APY topic to sure situations, on deduction of Government co-contribution and return/curiosity thereon.
What is the process for opening an APY Account?
Approach the financial institution department/ publish workplace the place a person’s financial savings checking account is held or open a financial savings account if the subscriber doesn’t have one.
Whether an Aadhaar Number is obligatory for becoming a member of the scheme?
Atal Pension Yojana (APY) has now been included beneath the Section 7 of the Aadhaar Act.
As per the provisions of the Act, any particular person who’s eligible to obtain such advantages beneath the APY should furnish proof of possession of Aadhaar quantity or bear enrolment beneath Aadhaar authentication. Hence, it’s fascinating to supply Aadhaar Number for correct identification of the subscriber.
Can you open an APY Account with no financial savings checking account?
No, the financial savings checking account/ publish workplace financial savings checking account is obligatory for becoming a member of APY.
Is it required to furnish a nomination whereas becoming a member of the scheme?
Yes. It is obligatory to supply nominee particulars in an APY account.
How many APY accounts are you able to open?
A subscriber can open just one APY account. Multiple APY accounts aren’t permitted.
Can minors open an APY account?
No. A minor can’t open an APY account.
Whether NRI is eligible to open an APY Account?
Yes, NRI within the age group 18-40 years of age having a checking account with APY POP is eligible to open an APY account.
Is there any helpline quantity devoted to APY Scheme the place queries associated to APY Scheme may be addressed?
The Toll Free Helpline quantity for APY Scheme is 1800-110-069
Whether exit from the APY Scheme is permitted earlier than 60 years of age? If sure, what are the advantages?
Yes, voluntary exit beneath APY earlier than 60 years of age is permitted. The subscriber shall solely be refunded the contributions made by him to APY together with the web precise accrued revenue earned on his contributions (after deducting the account upkeep prices).
However, in case of subscribers who joined the scheme earlier than thirty first March 2016 and acquired authorities co-contribution shall not obtain the federal government co-contribution and the accrued revenue earned on the identical, if opted for voluntary exit earlier than 60 years.
Read all of the Latest Business News right here
