Sunday , August 19 2018

Pradhan Mantri Atal pension Yojana (APY) (Calculator, PRAN,Eligibility,Close)

Pradhan Mantri Atal pension Yojana (APY), Apply, Chart, Close

The Indian Government is striving hard to make the life of the old people much easier and convenient by supporting them financially.  Introduction of the ATAL PENSION YOJANA is one such leap towards the betterment of the elderly people. This welfare scheme involves providing income security to the poor who are working in the unorganized sector. The plan includes encouraging them to save enough funds before they retire. No doubt, this would boost their financial confidence and would support them in old age when they actually need it the most.

Pradhan Mantri Atal pension Yojana

The Atal Pension Yojana scheme is being administered by the Regulatory and Development Authority (PFRDA) and would greatly benefit people employed in the unorganized sector. For the in-depth knowledge about this welfare scheme, check out below.

What is Atal Pension Yojana?

Atal Pension Yojana or APY guarantees a minimum pension of Rs. 1k, 2k, 3k, 4k and 5k to the workers who are the citizens of India and are employed in the unorganized sector. One could claim these monetary benefits once the 60 years age threshold reaches. The amount of pension scheme varies from 1k to 5k, which is totally dependent on the subscriber’s amount of contribution to the scheme.

Eligibility to subscribe in Atal Pension Yojana?

Anyone who is a citizen of India can is welcome to join this pension scheme. However, one should need to meet the following eligibility criteria set by the Government of India

  1. The minimum age to be eligible is 18 years and must not exceed 40 years while applying.
  2. The person must have a Savings bank account in his/her name or he/she can opt to open a new one before applying to the scheme.
  3. The potential applicant must possess a mobile number which must be registered with the bank with full details.

The Government co-contribution is available to the subscribers who apply from 1st June, 2015 till 31st Dec., 2015. The Government is willing to support the workers who do not have any social security cover and not fall under the taxable income.

Who are the other social security schemes beneficiaries not eligible to receive Government co-contribution under APY?

The persons who are covered under various statutory social security schemes do not qualify to get Government’s co-contribution. The beneficiaries are currently the member of below mentioned social security covers would not get any monetary support from the authorities. The list includes:

  1. The members registered under EPF scheme.
  2. The persons registered with the Coal Mines PF security cover.
  3. The beneficiaries of Assam Tea Plantation PF scheme.
  4. Seamen’s PF act.
  5. J&K PF scheme.

Those individuals who are enjoying benefits of any other statutory social security scheme are also not eligible to apply and get benefits from the Government.

How much pension will be received under Atal Pension Yojana?

The Indian Government has made it clear that the amounts of pension will range from 1 thousand to 5 thousand per month. The amount will be greatly influenced by the beneficiary’s monthly contribution to the scheme, which means the greater the contribution the more the amount of pension in future.

What is the benefit in joining Atal Pension Yoajna scheme? 

Are you are wondering about the benefit of joining under this scheme? Then, you will be likely to get impressed with the Government co-contribution for the period of 5 years. The contribution amount will be either Rs. 1,000/- per annum or fifty percent of the total amount of contribution towards the scheme, whichever is lower. The account holders will benefit from this co-contribution from the financial year starting from 2015 and till 2019.

How are the contributions of Atal Pension Yojana invested? 

The Government’s contribution to the scheme will be made in line to the instructions set by the Indian Ministry of Finance. The whole scheme will be strictly administered and observed by the PFRDA which is the honourable authority of the Government of India.

How to Apply for Atal pension Account?

  1. Contact the bank where you have a savings account.
  2. Ask for the APY registration form
  3. Fill it carefully and provide the details of your Aadhaar card
  4. Mention your mobile number and contact details mentioned in the form.
  5. Make sure that you maintain the required minimum balance in your savings account,
  6. Your contribution amount will get deducted from your account on the monthly basis.

Whether Aadhaar Number is compulsory for joining the scheme? 

To submit Aadhaar card while applying for the scheme is not a compulsion and neither this condition is set mandatory by the authorities. However, it is for the subscriber’s own benefit as this could act as a primary KYC document to identify the beneficiary and associated nominees. It could help you in claiming pension rights and settle down the disputes, if arise any in the future. This is the reason for recommending Aadhar card for the APY account opening.

 Can I open APY Account without savings bank account?

No, in order to be eligible for the APY scheme, the savings bank account is compulsory. There is no exception to this term and condition.

What is the mode of contribution to the account?

Regardless the amount of contribution of a subscriber, each payment must be submitted to the savings bank account of the beneficiary. From there, the contribution amount will be auto deducted every month. In case of doubt, you can ask the concerned bank for details.

What is the due date for monthly contribution?

Your initial date of deposit will be considered as the due date for the payment of the contribution amount for the APY scheme. This pre-decided date is not flexible in any condition.

What will happen if required or sufficient amount is not maintained in the savings bank account for contribution on the due date?

The subscriber’s savings bank account needs to maintain a minimum balance on the specified date which is equal to the one month’s contribution amount. In case the amount found to be lower than the required, the account will be measured as default. Banks are given the authority of penalizing those account holders by charging fine on them. The fine amount can be anything between One Rupee to Ten Rupees as the details mentioned below:

  1. If the contribution amount is Rs. 100/- per month, the fine charged would be One rupee per month
  2. For contribution amount from Rs. 101 to 500/- per month, the Two rupees per month would be fined.
  3. For Rs. 501/- to 1000/- per month, there will be Rs. 5/- per month fine
  4. 10 per month would be fined for the contribution above Rs. 1000/- per month

If for any reason, the payments get discontinued, the account would be frozen after the six months, deactivated after twelve months and would be completely closed after twenty four months.

Therefore, it is solely the subscriber’s headache to fund the account on the due date of contribution, to avoid penalties in the future.

Atal Pension Yojana Details

Sl. No. Scheme fields Relevant details
1 Type of scheme Pension scheme (Under the PFRDA)
2 Date of effect of scheme 1st June, 2015
3 Age for eligibility to join 18 years to 40 years
4 Time of maturity of pension scheme When the beneficiary attains 60 years of age
5 Targeted group of beneficiaries Employees of unorganized sectors, farmers, backward masses, women, SC/ST etc.
6 Inclusion of members of Swavalamban Yojana NPS Lite Automatic inclusion
7 Pension amount options Rs. 1,000, Rs. 2,000, Rs. 3,000, Rs. 4,000 and Rs. 5,000
8 Government’s contribution to the scheme 50 per cent of beneficiary’s contribution or Rs. 1,000 per year for 5 years
9 Eligibility to get Govt. contribution Must be non tax payer and must join APY before Dec. 2015
10 Mode of monthly payment to APY account Auto debit process from the bank account linked with APY account
11 Where to apply for the APY scheme? All nationalized banks
12 Nomination facility Available
13 Non payment for 6 months Account frozen
14 Non payment for 12 months Account deactivated
15 Non payment for 24 months Account permanently closed
16 Online download APY application form http://www.jansuraksha.gov.in/FORMS-APY.aspx
17 Premature exit from scheme Yes you can now do a premature exist. Will have to pay some fine. Fine amount is yest not clear.
18 Total number of APY accounts opened so far 2,405,268 (As on 16th April 2016)

Other Important Points

  • Now you can avail tax benefits on the premium amount.
  • Now you can close your Atal pension account any time.
  • PFRDA wants to open 5 million new APY accounts in FY 2016-17

Atal Pension VS National Pension Scheme (NPS) 

S.No Factors APY NPS
1 What they stand for? APY is a newly launched pension scheme by BJP government in order to provide financial support for the people after their retirement.  National Pension Scheme (NPS), is the old pension scheme which is in practice for about 10 years for offering financial support for retired employees.
2 Age Limits and Eligibility for Employees to join Employees who are all in between the age group 18 to 40 years are eligible to join in APY. Employee, a month after 40 years would be declined to join in APY Where else, in NPS the age limit rules will be 18 – 60 years. In both scheme employees who are above 60 years are not allowed to join.
3 Contributions Made by Employees As per the rules stated in APY, contribution amount will get varies depending upon the ages of employees and the pension scheme which they chosen to receive after their retirement. Meanwhile, in NPS minimum contribution was Rs.6000 for Tier I category employees and Rs.1000 for Tier II category employees. Tier system implemented based on employees salary limits.

Update

 5 January 2018

Aadhar Card Mandatory From 1 Jan 2018 in Yojana

As per updates from Finance Ministry, Investors purchasing Atal Pension Scheme will have to provide their Biometric information by Linking Aadhar Card with the Atal Pension scheme.

  • The new change is valid from 1st January 2018 for all investors in the pension scheme.
  • Everyone will be able to link Aadhar details via the online web portal services when purchasing pension scheme.
  • The PFRDA authority has also made changes to necessary changes to the application form online so applicants can enter their Aadhar details while completing registration process.

This step has been taken with an aim to authenticate identity of investors in the scheme. 

 8 Feb 2018

Small Finance Banks and Payments banks to offer the scheme 

The Ministry of Finance had earlier introduced the Atal Pension Yojana for implementation in various Banks and Financial Institutions across the nation. Launched earlier in 2015 May 9th, PM Narendra Modi had introduced the Social Security scheme as guaranteed pension offering scheme for benefiting people.

Under the new scheme the RBI (Reserve Bank of India) has issued notification and license to over 10 small Banks and 11 other Payment banks for offering with this scheme to the beneficiaries.

  • The government’s main aim for implementing the scheme via these banks was to outreach maximum number of people to offer benefit under the scheme.
  • For better implementation of the scheme for maximum beneficiaries nationwide the government has also conducted orientation under PFRDA (pension Fund Regulatory and Development Authority) along with banks and financial institution heads on 2018 January 15th.
  • The scheme is aimed at helping build a pensioned society such that the incentives for these banks can be stabilized under the APY.
  • The government has also ensured that each financial bank and Payment bank will get an opportunity to earn Rs 120 to Rs 150 per beneficiary registered under the scheme.
  • The government has also issued the complete list of financial institutions and payment banks selected under the scheme that can be collected online via official website.

15/6/2018

Primarily, it was announced that any applicant will stand a chance to acquire Rs. 1000 to Rs. 5000 on a monthly basis. But on 15th June, PFRDA announced that central government has decided to up the maximum pension level from Rs. 5000 to Rs. 10,000. The amount that a person will get later on will depend on the monthly contribution that he/she is making today.

Other Schemes

2 comments

  1. Dear Sir,

    The SBI branches are not giving form of Pradhan Mantri Pension Yojana. They are saying the don’t have the form of the same. How do I get the same.

    Please help me out.

    Thanking you,

    Yours faithfully

    Pintu Boral

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