Atal Pension Yojana: The Government of India has started a new retirement pension scheme in order to financially secure the people working in the unorganized sector. They named the scheme ‘Atal Pension Yojana’ with the aim of providing financial security to the unorganized sector of the country. Previously, all the individuals having their National Pension Scheme (NPS) accounts were awarded Rs 1,000 every year by the Indian government. Now, the government has replaced National Pension Scheme with Atal Pension Yojna and all the Indian citizen under the age group of 18 to 40 years falls under this scheme.
Under the Atal Pension Yojana, the government is providing a pension every month of up to Rs 5,000 when a person reaches 60 years of age. The employees in the private sector can also subscribe to this yojana to enjoy its benefits. All the subscribers can select the contribution amount as it directly affects the amount of the return. You are going to be entitled to a guaranteed pension amount accordingly that will be of Rs. 1000 to Rs. 5000 after attaining the age of 60 years. In case of an unexpected or unfortunate situation like the death of the subscriber, the pension amount is going to be offered to the spouse or the nominee. Additionally, you must have a valid mobile number and a bank account that is linked to your Aadhar card to get eligible for its benefits. It will be better if you register sooner as early joining will have to make fewer contributions.
Atal Pension Yojana: Eligibility Criteria
To become a subscriber of Atal Pension Yojana, the applicants must fulfill eligibility criteria which are as follows:
- The applicant must have a savings bank account which should be linked with their registered mobile and Aadhaar card.
- There is also an age limit which should be between 18 to 40 years.
- The candidate’s contribution must be for at least 20 years.
Note: The subscribers of Swavalamban Yojana have automatically been shifted to Atal Pension Yojana.
How to Apply for Atal Pension Yojana?
Once you qualify the eligibility criteria of Atal Pension Yojana, you can move forward to apply for this scheme. Make sure to have a savings bank account, an Aadhaar number, and a mobile number before starting the process of this pension scheme registration. If you have all the requirements ready, then start the process by following the steps that are given below:
- Step 1: At first, go to the nearest national banks as they provide the pension yojana. Make sure, you have registered yourself for the Atal Pension Yojana along with a saving account at that bank.
- Step 2: The registration forms are also easily accessible online and at the bank branches as well. If you want to get the form online, then download it and take a printout of it. After that fill out the form at home and take it to the bank branch and submit the form there. You can also directly go to the bank branch and take the form, fill it and submit it at the bank itself.
- Step 3: You will also need to provide your valid mobile number.
- Step 4: At last, attach the photocopy of your Aadhar card that is linked to your registered bank account.
- Step 5: As soon as your application is approved after submitting the form, you are going to get a confirmation SMS on your registered mobile number.
Atal Pension Yojana: Monthly Contribution
For those who are not aware, the APY scheme is a regular contribution that is on the basis of a pension plan that promises a pension of a guaranteed amount and that is INR 1,000 – 2,000 – 3,000 -4,000 or INR 5,000. In addition to that, the monthly contribution is going to depend on the pension choice that you want and your age when you sign up for this pension yojana. The pension is only going to begin when you are at the age of 60 years. For instance, if you begin your contribution at 40 years of age, then you will be required to pay your contribution till the age of 60 years, that is for at least 20 years of the period for your pension to begin.
Now talking about the number of pension returns, it is determined by your contributions on monthly basis. Below here is the table with a few examples through which you can evaluate your contribution on the basis of your age and pension plan.
|Entry Age||Contribution Years||Monthly Pension of INR 1000||Monthly Pension of INR 2000||Monthly Pension of INR 3000||Monthly Pension of INR 4000||Monthly Pension of INR 5000|
|30 years old||30 years||116||231||347||462||577|
|31 years old||29 years||126||252||379||504||630|
|32 years old||28 years||138||276||453||551||689|
|33 years old||27 years||151||302||414||602||752|
|34 years old||26 years||165||330||453||659||824|
|35 years old||25 years||181||362||495||722||902|
|36 years old||24 years||198||396||543||792||990|
|37 years old||23 years||218||436||594||870||1087|
|38 years old||22 years||240||480||654||957||1196|
|39 years old||21 years||264||528||792||1054||1318|
|40 years old||20 years||291||582||873||1164||1454|
Penalties of Delayed Contributions
Now taking about any default in contributions, then a penalty will be charged to the registered subscribers. To know how many penalties will be levied, read the content that is given below:
- For the contribution up to Rs. 100 per month, a penalty of Rs. 1 per month will be charged.
- For the contribution up to Rs. 101 to Rs 500 per month, a penalty of Rs. 2 per month will be charged.
- For the contribution up to Rs. 501 to Rs 1000 per month, a penalty of Rs. 5 per month will be charged.
- For the contribution up to Rs. 1001 per month, a penalty of Rs. 10 per month will be charged.
If in case there’s no contribution is made, then these are the following outcomes to your APY account:
- For making no contribution from the first day, your account will be frozen after 6 months.
- After 12 months, your APY account is going to be deactivated.
- Later on, when 24 months will pass, your APY account will be finally closed.
The Atal Pension Yojana does not allow its subscribers to withdraw from the scheme before they attain the age of 60 years (under normal circumstances). However, there are some exceptional cases where withdrawal can be allowed such as terminal illness or death of the subscriber. If the subscriber died before the age of 60 years, he/ she will automatically exit the scheme. On the other hand, his/ her spouse will get the money, but they will also get an option to continue making contributions to the scheme till the term has been finished. After this, they will be entitled to get a pension payout on monthly basis.