24th September, 2018

Frequently asked questions about Atal Pension Yojana

Atal pension Yojana Frequently Asked Questions

1)  What is Atal Pension Yojana? Why do I need it?

Atal Pension Yojana is a voluntary pension scheme for the citizens of India and it focuses on the people working in unorganized sectors. The government has recognized the income-security needs of people whose earning-potential decreases with age and they struggle with the increasing cost of living. The assured amount will ensure a dignified life during the old age. Under this scheme, there is a guaranteed pension amount ranging from Rs 1000 to Rs 5000 per month that will be paid periodically after 60 years of age depending on the total contribution made by the claimant.

2) Who all can subscribe to APY?

Indian citizens can join the APY scheme. Here are the eligibility criteria:

  • The subscriber's age should be between 18-40 years.
  •  He/she must have a saving account
  • The applicant can provide mobile number and Aadhaar number to the bank for the registration purpose to receive the periodic updates of the account. 

3) What would be the duration for the Government co-contribution?

The government will co-contribute for five years i.e. from 2015 to 2020 for all the subscribers who has joined the scheme between June 1, 2015, to December 31, 2015, and who do not have any other Statutory social security scheme with no tax paying.

4) What are the advantages of joining APY scheme?

When you open your account under the APY scheme, the Government contributes 50% of the total contribution for the accounts that were started during the period of June 1, 2015, to December 31, 2015. All those account holders are eligible for the co-contribution of Government for next five years. The co-contribution will cover those people who are not under any Social Security Schemes and also not an income tax payer.

5) Do I need saving bank account for the opening of APY account?

Yes, the saving bank account is mandatory to open the Atal Pension Yojana account.

6) Can we make the deposit via cheque?

No, All the deposits and contribution will be paid on monthly basis through automatic debit facility from linked saving account of the Atal Pension Yojana account holder.

7) Will there be any penalty if the saving account does not have enough funds for the deposit on the due date?

Yes, in such case the bank will be deducting an additional amount for the delayed payment which can vary from minimum Rs 1 to Rs 10 per month depending on the amount falling into the standard slab. Continued delayed payment will lead to the account getting frozen after six months and closed after 12 months. 

8) Do I need to declare the nominee while joining the APY scheme?

Yes, it is important to add nominee details while opening the APY account. The details of spouse along with the Aadhaar are necessary, if applicable. 

9) Can an account holder have more than one APY Scheme account?

No, there can be only one Atal Pension Yojana Scheme account per account holder. 

10) Can we decrease or increase the deposit amount for lower or higher pension amount?

Yes, you may change the monthly contribution amount and the option to make such changes is available once a year during the month of the April. 

11) How to withdraw the Atal Pension Scheme?

There are four scenarios to withdraw the APY scheme and they are as follows:

  • The account holder can leave the scheme once he or she has attained 60 years of age with 100% accumulation amount.
  • In the event of the death of Atal Pension Scheme account holder, the pension will be paid to the spouse or nominee.
  • The account holder can leave the scheme before 60 years of age under the exceptional situation or in the event of terminal disease. 

12) How to check the status of Atal Pension Yojana Account?

There are two ways of getting updates about Atal Pension Yojana account:

  1. You will get regular SMS alerts to your mobile number
  2. You will receive the paper copy of the bank-statement of the linked account via mail to your registered address.

13) After coming 60 years of age, for how many years will I get the benefit?

The account holder will receive lifelong benefit after 60 years of age.