APY – Atal Pension Yojana
Atal Pension Yojana (APY) was announced by the Government of India in the budget of 2015-16 with the objective of helping people working in the unorganized sector.
- Investing in this gives a pension of Rs 5,000 every month.
- Tax benefit is also available in this.
- The Government of India also contributes to this scheme.
- This is a risk-free plan.
This scheme was launched to help the poor people working in the unorganized sector to get regular income after retirement. This scheme encourages them to save for their retirement. The entire operational work of this scheme is handled by the Pension Fund Regulatory and Development Authority (PFRDA). APY scheme is a voluntary scheme to save for retirement.
Process to apply for Atal Pension Yojana
To take advantage of this scheme, the following steps have to be followed:
- All Nationalized Banks provide APY scheme. An APY account can be opened by visiting these banks.
- Account opening form is also available online on the Bank’s websites. Application form can be downloaded.
- The application form is available in English, Telugu, Tamil, Oriya, Marathi, Kannada, Gujarati, and Bangla.
- It is necessary to fill the application form and submit it to the bank.
- A valid mobile number has to be given.
- Aadhar card photocopy has to be submitted.
Once the application is approved, a confirmation message is received.
What is the method of filling the Atal Pension Yojana form?
After getting the Atal Pension Yojana form, it is very easy to fill it.
Step 1: Addressing the Form
This form is to be filled by addressing the branch manager. You can know the name of your branch manager by calling or visiting the bank. Enter your bank name and branch name.
Step 2: Bank details
Fill the form in capital letters. First of all, you have to provide your bank details. Enter your bank account number, bank name and branch name. It is necessary to fill this field.
Step 3: Personal Details
- Tick the box next to “Mr.”, “Mrs.” or “Miss” that applies to you. Tick ”Mr” if you are a male applicant. Tick ”Mrs” if you are a married female applicant. Tick ”Kumari” if you are a virgin female applicant.
- Married applicants must enter their spouse’s name.
- Enter your full name, date of birth, and age.
- Enter your mobile number, email address and Aadhaar number.
- After that you can enter the name of your nominee and your relationship with him/her. Your nominee will get your money in case of your death.
- If the nominee is a minor, then you have to enter his/her date of birth and the name of the guardian.
- You also need to state whether the nominee has any other statutory social security scheme and whether he is an income taxpayer.
Step 4: Pension Details
You can invest Rs 1,000 to Rs 5,000 in this account for your pension in Rs 1,000, Rs 2,000, Rs 3,000, Rs 4,000, or Rs 5,000. The box named “Contribution Amount (Monthly)” has to be left blank as it is filled by the bank after calculating the amount you have to invest every month to get pension.
This calculation will be done on the basis of your age at the time of admission. For example, to get a pension of Rs 2,000, you need to invest Rs 151 every month if you are 25 years old at the time of entry.
Step 5: Declaration and Authorization
You have to enter the name of the date and place. You can either sign the document or give a thumb impression. By signing the document, you represent that you meet the eligibility criteria of Atal Pension Yojana and that you have read and understood the terms and conditions of the scheme. You also represent that the information entered by you is correct to the best of your knowledge. In case of any change in the information entered, you must contact the bank immediately. You also declare that you do not have any account in NPS. You will be held liable for knowingly providing false or incorrect information.
Step 6: It will be filled by the bank
The last part of the Atal Pension Yojana form i.e. “Acknowledgement – Subscriber Registration for Atal Pension Yojana (APY)” is to be filled by the bank. You should leave this box blank. This is an acknowledgment from the bank that they will subscribe to the Atal Pension Yojana scheme for you. After you submit the form, it will be filled by the bank agent.
Eligibility Criteria for Atal Pension Scheme
Following are the eligibility criteria of Atal Pension Yojana:
- To invest in it, it is necessary to be a citizen of India.
- Age should be between 18 to 40 years.
- Must have an active mobile number.
- Must have a valid bank account number linked to the Aadhaar number.
- All the details related to ‘Know Your Customer’ have to be given.
- The account holder should not already have an existing APY account.
Features and Benefits of Atal Pension Yojana
Following are the salient features of the APY scheme:
- The Government of India guarantees the minimum pension given to the individual after his retirement.
- Under section 80CCD, Atal Pension Yojana tax benefit is available on the investment made in this scheme.
- All bank account holders can join this scheme.
- People investing in this start getting pension after turning 60 years old.
- Employees working in the private sector who do not get any pension benefit are also allowed to apply for this scheme.
- There is an option to get a fixed pension of Rs 1,000, Rs 2,000, Rs 3,000, Rs 4,000, or Rs 5,000 after turning 60.
- After the death of the account holder during the plan, his/her spouse can either withdraw the money deposited or complete the time period of the plan.
FAQs about Atal Pension Yojana
- Is it necessary to submit Aadhaar number while registering for this scheme?It is not mandatory to give Aadhaar number while subscribing but Aadhaar card is used as the main KYC document by banks to identify the beneficiaries, nominee and spouse of the subscriber.
- Can I open an Atal Pension Yojana account without a savings account?No, applicants must have a savings bank account while applying for this scheme.
- How is the due date for monthly contribution or investment determined?The due date is decided on the basis of the first investment date.
- Is it necessary for the subscribers to have a nominee while joining the Atal Pension Yojana?Yes, it is necessary to have a nominee. While applying for Atal Pension Yojana, along with giving the details of your spouse, you also have to give the details of the nominee. Aadhaar related details of spouse and nominee also have to be given.
- How many Atal Pension Yojana accounts can be opened by a subscriber?A subscriber is allowed to open only one Atal Pension Yojana account which will be unique to him.
- Can I join Atal Pension Yojana without an Aadhaar number?Aadhaar number is not required while opening Atal Pension Yojana account but Aadhaar related details will be required for enrolling beneficiaries, spouse and identifying nominees.