The Atal Pension Yojana – Eligibility, Procedure and Benefits

The Atal Pension Yojana is a pension system that aims to provide a stable income to the working poor after they retire. All bank account holders are eligible for the Atal Pension Yojana. Any Indian citizen between the ages of 18 and 40 can participate in the initiative. The Government of India introduced the Atal Pension Yojana (APY) scheme in the 2015-2016 budget to assist persons who work in the unrecognized sector. In this write up, we will talk about The Atal Pension Yojana. 

Atal Pension Yojana

Atal Pension Yojana (APY) is also known as Swavalamban Yojana (SY, Self-Support Scheme). It is an Indian government-sponsored scheme, aimed primarily at the unrecognized sector. The Atal Pension Yojana is a pension system that aims to provide a stable income to the working poor after their retirement.

In 2015, Arun Jaitley referenced this unique scheme in his Budget speech. However, Prime Minister Narendra announced it on May 9, 2015 in Kolkata.

The Atal Income Yojana is meant for persons who desire to save a little amount of money for a set pension after they retire (mainly daily wage employees who are unable to prepare for their future). People who work in the private sector and are not tax payers or members of any other social security plan can also profit from it. All eligible family members can subscribe to APS in their names in order to increase their families’ pension plan advantages.

If you are finding any issue regarding understanding of basics of Atal Pension Yojana, connect to the Legal Window. 

Objective of Atal Pension Yojana

The Atal Pension Yojana’s major goal can be summarized as follows:

• For Financial Security of people working in unrecognized sector.
• Protection of citizens from illness, accidents, and diseases, among other things.
• Help in development of unrecognized sector.

Procedure to download APY form

The following are the steps that user must keep in mind: 

• We can download and print the form from the official websites of the participating banks, assuming they offer this service.
• The APY account opening form can be downloaded from the Pension Fund Regulatory and Development Authority’s official website (PFRDA).

Procedure to apply for the Atal Pension Yojana

The following are the procedure to apply for the Atal Pension Yojana: 

• The APY scheme is available at all nationalized banks. Individuals can open an APY account at these banks.
• The account opening forms can also be found on the bank’s websites. Individuals can obtain the application form by downloading it.
• Complete and submit the bank application form.
• It is necessary to supply a genuine mobile phone number.
• Requirement of a photocopy of your Aadhaar card.

Procedure to fill Atal Pension Yojana Form

Following is the procedure for filling out the form of the Atal Pension Yojana Scheme:

Step 1: Filling out the form: The form must be addressed to the Branch Manager. Calling or visiting the bank will provide you with the name of your Branch Manager. Enter the name of your bank and the location of your branch.

Step 2: Bank account information: Fill out the form completely in BLOCK letters. You must first submit your bank account information. Enter the account number, bank name, and branch of your bank. This field is required.

Step 3: Personal information

• Select the appropriate box to indicate whether you are a ‘Shri,’ ‘Smt,’ or ‘Kumari.’ If you are a male applicant, select ‘Shri.’ If you are a married female applicant, select ‘Smt.’. If you are a single female applicant, select ‘Kumari.’
• Applicants who are married must include their spouse’s name.
• Fill in your full name, birth date, and age.
• Please include your phone number, email address, and Aadhaar number in your form.
• Then you can name someone and describe their link to you. In the event of your death, your gift will be received by a nominee.
• If the nominee is a minor, you must supply their date of birth as well as the name of their guardian.
• You must also mention whether the person is a member of any other statutory social security programs.

Step 4: Pension information: You can contribute between Rs.1,000 and Rs.5,000 to your pension, with options such as Rs.1,000, Rs.2,000, Rs.3,000, Rs.4,000, and Rs.5,000. The ‘Contribution Amount (Monthly)’ field below should be left blank since the bank will fill it in after calculating the amount you must pay each month to get the pension. The computation will be based on your age at the time of enrollment. For example, if your entry age is 25, you will have to pay Rs.151 each month for a pension of Rs.2, 000.

Step 5: Authorization and Declaration: You must mention the date and location. You declare that you meet the Atal Pension Yojana eligibility criteria and that you have read and understood the scheme’s terms and conditions by signing the form and you undertake that what you’ve written is correct to the best of your knowledge. Contact the bank right away for the information. Also state that you do not have any NPS accounts (National Pension System). Moreover you shall be held liable for any willfully given inaccurate or incorrect information.

Eligibility for the Atal Pension Yojana

The following are the requirements for the Atal Pension Yojana:

• You have to be a citizen of India.
• To participate age should be in between 18 to 40.
• Connect your Aadhaar number to a genuine bank account.
• Submit all ‘Know Your Customer’ information. 
• You must not already have an APY account.

Procedure for Withdrawing from the Atal Pension Yojana

• The Atal Pension Yojana withdrawal method has been slightly adjusted, as it previously did not allow quitting before reaching the age of 60.
• If you reach the age of 60, you can leave this arrangement and get a full amount pending of your pension. You need to go to the bank and fill out an application for your pension.
• Only in extreme circumstances, such as terminal sickness or death, allow you to leave the program before reaching the age of 60. Your spouse will receive your pension if you die before reaching the age of 60. If both you and your spouse have passes away, the nominee will get the pension.

Atal Pension Yojana Features and Benefits

The following are the key feature of the APY scheme:

• The Indian government guarantees that an individual would get a minimum pension after retirement.
• Individuals who make contributions to the Atal Pension Yojana are eligible for tax benefits under Section 80CCD of Income Tax Act, 1961.
• The APY scheme is open to anybody with a bank account.
• When people reach the age of 60, they will begin receiving a pension.
• Employees in the private sector who do not receive any pension benefits are also eligible to register for the scheme.
• Once you reach the age of 60, you can choose between a fixed pension of Rs.1, 000, Rs.2, 000, Rs.3, 000, Rs.4, 000, or Rs.5, 000.

Conclusion

This program helps impoverished people to save money for the future. When they are no longer working, a pension gives them a monthly income. All eligible Indian citizens should consider enrolling in the scheme because of the long-term benefits it offers. The Atal Pension Yojana, a social security system, is a very comprehensive step to broaden the security net for senior individuals. With the implementation of this scheme, the government is well on its way to realizing its motto of “Sabka Saath, Sabka Vikaas.”

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