Atal Pension Yojana: How much pension will a subscriber receive under APY?


The Atal Pension Yojana (APY) is a retirement program largely aimed at employees in the unorganised sector. An individual is limited to opening a single, APY account. The use of multiple accounts is prohibited.

Here is a look at important FAQs about APY according to the Atal Pension Yojana website.

Who can subscribe to APY?

Any Citizen of India can join APY scheme. The following are the eligibility criteria,

i The age of the subscriber should be between 18 – 40 years.

ii He / She should have a savings bank account/ open a savings bank account.

iii The prospective applicant should be in possession of mobile number and its details are to be furnished to the bank during registration.

How much pension will be received under APY?

At the age of 60, the Atal Pension Yojana will provide a guaranteed minimum pension of Rs 1,000, 2,000, 3,000, 4,000, and 5,000 per month, depending on the subscribers’ payments.

Pension contribution details

A savings bank account is required to join open APY account. All payments must be made on a monthly basis via auto-debit from the subscriber’s savings account.

Due date for monthly contribution

The initial date of deposit of the payment into the APY will serve as the due date for the monthly contribution.

Once a year, during the accumulation phase, subscribers have the option to choose between decreasing or increasing the pension amount. However, the option to swap will only be accessible once every year, in April.

Penalty for not maintaining sufficient amount in the savings

If the required balance in the savings bank account is not maintained for the contribution on the scheduled day, it will be considered as default. The additional amount that banks must collect for overdue payments ranges from a minimum of Rs 1 per month to Rs 10 per month, as indicated below:

I. Re. 1 per month for contribution up to Rs. 100 per month.

ii. Re. 2 per month for contribution up to Rs. 101 to 500/- per month.

iii. Re 5 per month for contribution between Rs 501/- to 1000/- per month.

iv. Rs 10 per month for contribution beyond Rs 1001/- per month.

APY discontinuation details

The following consequences will follow a discontinuation of contribution payments:

  • Accounts become frozen after six months.
  • Accounts are terminated after 12 months. Accounts are terminated after 24 months.
  • The subscriber must make sure their bank account has enough money in it to cover the auto-debit of their contribution.
  • The subscriber’s pension corpus will continue to include the predetermined amount of interest or penalty.

Aadhaar for joining the scheme

It is not necessary to provide an Aadhaar number while opening an APY account. However, for enrolling, Aadhaar would be the primary KYC document for identifying beneficiaries, spouses, and nominees in order to avoid long-term pension rights and entitlement conflicts.



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