Atal Pension Yojana (APY) is an old age income security scheme designed for savings account holders aged between 18 and 40 years who are not income tax payers. The scheme primarily addresses the longevity risks among workers in the unorganized sector, encouraging them to voluntarily save for their retirement. APY is targeted at the poor, underprivileged, and unorganized workers, ensuring they receive a guaranteed minimum pension upon reaching the age of 60.
Focus of APY
- Target Group:
The scheme is mainly aimed at the economically weaker sections and unorganized workers. - Contribution and Benefits:
Subscribers contribute a fixed amount on a monthly, quarterly, or half-yearly basis through an auto-debit facility from their savings bank account. Detailed contribution charts are available at:
APY Subscriber Contribution Chart
Benefits
Upon exit at age 60, the subscriber receives:
- Guaranteed Minimum Pension:
A monthly pension, which can be Rs. 1,000, 2,000, 3,000, 4,000, or 5,000 until death. - Pension to the Spouse:
In the event of the subscriber’s demise, the spouse receives the same pension amount until death. - Return of Pension Wealth:
After the demise of both the subscriber and the spouse, the nominee is entitled to the accumulated pension wealth.
Additionally:
- Contributions to APY are eligible for tax benefits under Section 80CCD(1), similar to the National Pension System (NPS).
- Voluntary Exit:
Subscribers exiting before 60 years are refunded only their contributions along with the net actual accrued income, subject to deductions for account maintenance charges. - In Case of Death Before 60:
- Option 1: The spouse may continue contributions in the APY account until the original subscriber’s age of 60 is reached, receiving the same pension thereafter.
- Option 2: The entire accumulated pension corpus till date is returned to the spouse/nominee.
Eligibility
- Age of Joining:
18 to 40 years. - Age of Exit:
Pension commences at 60 years. - Contribution Method:
Subscribers must contribute the prescribed amount through auto-debit from their savings bank account. - Tax Exclusion:
From 1st October, 2022, any citizen who is or has been an income tax payer is not eligible to join APY.
Application Process
Online / Offline
Process 1: Net Banking
- Login:
Open your net banking account and search for APY on the dashboard. - Fill Details:
Complete the basic and nominee details. - Consent:
Provide consent for auto-debit of the premium from your account and submit the form.
Process 2: Through NSDL Portal
- Visit Website:
Go to https://enps.nsdl.com/eNPS/NationalPensionSystem.html and select “Atal Pension Yojana.” - Registration:
Click “APY Registration” and fill in the basic details. - KYC Completion:
Complete KYC through one of the following options:- Offline KYC: Upload the XML file of Aadhaar.
- Aadhaar-based: Verify via OTP on the mobile number registered with Aadhaar.
- Virtual ID: Use the Aadhaar Virtual ID for KYC.
- Acknowledgement:
An acknowledgement number is generated after submission. - Personal and Nominee Details:
Fill in further details and confirm your selections. - eSign:
Complete the process through eSign via Aadhaar OTP verification. - Digital Registration:
You may also join digitally via the e-APY portal or bank web portals offering the facility.
For any grievances, subscribers can visit: NPSCRA NSDL Grievance Portal
Helpline:
Toll-free number: 1800-110-069
Documents Required
- KYC details fetched from an active Savings Bank/Post Office Savings account.
- Aadhaar details (used for OTP verification).
Frequently Asked Questions
- When will I receive my pension?
Upon exit at age 60, as per the guaranteed pension chosen. - I am a Swavalamban subscriber. Can I still apply for APY?
Specific guidelines apply; please check with your bank or the official portal. - Is it required to furnish nomination while joining?
Yes, nomination details must be provided. - Is there any provision of a default nominee or blood relation?
Standard guidelines apply; you must nominate a beneficiary. - What happens if the contribution gets delayed?
Charges and overdue interest will be levied as prescribed by PFRDA. - How will I know the status of my contribution?
You can check the status via the designated online portal. - Is the Aadhaar number compulsory for joining?
Yes, Aadhaar-based KYC is mandatory. - Can an employee of a government or PSU or an NPS subscriber join APY?
Such individuals are not eligible. - Can I open an APY account without a savings bank account?
No, a savings bank account is required. - If I have completed 40 years, can I join APY?
No, the age of joining must be between 18 and 40 years.