Atal Pension Yojana: Know the benefits eligibility, documents required and enrollment process
Atal Pension Yojana (APY Scheme): Launched in 2015, Atal Pension Yojana (APY) is a social security scheme aimed at providing a stable income to individuals during their retirement years.
Here's all you need to know about Atal Pension Yojana (Source Freepik)
Atal Pension Yojana (APY Scheme): Named after former Prime Minister Atal Bihari Vajpayee, the Atal Pension Yojana (APY) is a social security scheme aimed at providing a stable income to individuals during their retirement years. Launched in 2015 by the Government of India, the scheme is particularly targeted at unorganised sector workers, who often lack access to formal pension schemes. APY encourages workers to save voluntarily for their retirement, thereby ensuring a secure financial future.
Early this year, there was over 28 per cent growth in APY subscribers and more than 1 crore new customers were added, as per the Ministry of Finance. Here is all you need to know about the scheme.
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Guaranteed pension: Depending on the contribution amount, subscribers can receive a fixed monthly pension of ₹1,000 to ₹5,000 after the age of 60.
Government co-contribution: For eligible subscribers, the government contributes 50% of the total contribution or ₹1,000 per annum, whichever is lower, for five years.
Tax benefits: Contributions towards APY are eligible for tax benefits under Section 80CCD of the Income Tax Act.
Financial security: APY provides financial stability and security to individuals, particularly those from the unorganised sector, during their old age.
Flexibility in contribution: Subscribers can choose their contribution amount based on the desired pension amount and change it once a year.
Atal Pension Yojana: Indicative Contribution Chart (age-wise)
The contribution amount varies depending on the age of the subscriber and the desired pension amount. Here is an indicative contribution chart:
Atal Pension Yojana Contribution Chart (Source: CSB Bank)
Atal Pension Yojana: Eligibility
To be eligible for the Atal Pension Yojana, individuals must meet the following criteria:
Age: The applicant should be between 18 and 40 years of age.
Bank account: The applicant must have a savings bank account, which will be linked to the APY account.
Contribution: The applicant should agree to make regular contributions towards the scheme until the age of 60.
Atal Pension Yojana: Documents Required
Applicants need to provide the following documents to enrol in the Atal Pension Yojana:
Aadhaar card: To ensure identity and address proof.
Bank account: A savings account number for the auto-debit of contributions.
Mobile number: For communication and updates regarding the scheme.
Additional KYC documents: If required by the bank, such as a PAN card or voter ID
Atal Pension Yojana: Application Process
Enrolling in the Atal Pension Yojana has both online and offline methods.
Offline:
Visit the bank. Approach the bank branch where you hold a savings account. Most public and private sector banks facilitate APY enrollment.
APY registration form: Collect the APY registration form from the bank or download it from the official websites of participating banks.
Fill out the form. Provide the required details, such as name, age, Aadhaar number, bank account details, and the choice of pension amount.
Submit the form. Submit the completed form, a photocopy of your UID card, and other necessary documents.
First contribution: Ensure a sufficient balance in your savings account for the first contribution amount, which will be auto-debited.
Receive confirmation: Upon successful processing, you will receive a confirmation message on your registered mobile number and a unique APY account number.
Online:
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Applying for the Atal Pension Yojana (APY) online is a straightforward process. Here’s a step-by-step guide to help you through the online application process:
Visit the official bank portal or mobile banking app. Access the bank’s online banking portal or mobile banking application, where you hold your savings account. Most major banks in India offer the facility to enrol in APY through their digital platforms.
Log in: Use your credentials to log in to your internet banking account or mobile banking app.
Navigate: In the menu, look for the ‘Social Security Schemes section or directly search for ‘Atal Pension Yojana’ (APY) in the search bar provided within the portal or app.
Fill out the application form. Once you find the APY section, you will be directed to the online application form. You will need to fill in the following details:
Consent for auto-debit: One will need to provide consent for the auto-debit of the monthly contribution amount from their savings account. This is crucial for the regular deduction of the APY contribution.
Verification and confirmation: Review all the details you have entered. Once confirmed, submit the application form. You may receive an OTP on your registered mobile number for verification.
Apply: Enter the OTP to verify your application. After successful verification, your application will be processed.
Upon successful enrollment, you will receive a confirmation message on your registered mobile number, along with your unique APY account number.
The Atal Pension Yojana is a significant step towards financial inclusion and security for unorganised sector workers in India. By offering a guaranteed pension and encouraging savings for retirement, APY helps build a robust safety net for millions of Indians.
