Comments
The Atal Pension Yojana (APY) is a Centrally-sponsored social security scheme administered by the Pension Fund Regulatory and Development Authority (PFRDA) through the National Pension System (NPS).
This scheme is primarily meant for citizens in the unorganised sector such as personal maids, drivers, plumbers, carpenters and gardeners. The subscriber would receive a fixed minimum pension ranging from Rs 1,000 to Rs 5,000 per month at the age of 60 years, depending on his/ her contributions and based on the age of joining the APY.
The objective of this plan is to help these workers save small amounts during their productive years to enable them to draw a pension in old age. The minimum age of joining APY is 18 years and the maximum 40 years. The minimum period of contribution by any subscriber under APY would be 20 years or more. The benefit of a fixed minimum pension would be guaranteed by the Government.
The scheme was launched in May 2015 and has a subscriber base of 1.10 crore. Till date, the APY has collected Rs 3,950 crore in contributions from subscribers. The scheme has generated around 9.10 per cent compounded annual growth rate (CAGR) since inception till March 2018.
Click here to read contribution table
The top ten states in APY subscriber mobilisation are Uttar Pradesh (14,01,631); Bihar (10,61,660); Tamil Nadu (8,14,917); Maharashtra (7,58,695); Karnataka (6,86,504); Andhra Pradesh (6,86,504); West Bengal (5,51,471); Madhya Pradesh (4,98,111); Rajasthan (4,97,962) and Gujarat (4,86,465).
Eligibility and document proof
This pension plan is applicable to all citizens in the age group of 18-40 years. Aadhaar will be the primary Know Your Customer (KYC) proof along with mobile number. If Aadhaar is not available at the time of registration, it should be submitted at a later date.
Charges for default
If an investor fails to pay periodic payments, the banks will charge a penalty varying from Re 1 to Rs 10 per month of the selected premium. Also, if payments are discontinued for a longer duration, i.e. six months, one year or two years, the pension account will be frozen, deactivated and closed respectively.
Maturity
On completion of 60 years, the exit from APY is permitted with 100 per cent annuitisation of pension corpus. In the case of the subscriber's death, the pension will be given to the spouse and on the death of both of them (subscriber and spouse), the pension corpus will be returned to his or her nominee.
Premature withdrawal
Exit before 60 years of age is not permitted under this plan. However, premature withdrawal is allowed in exceptional circumstances like death of the beneficiary or if he or she contracts a terminal disease.
How to apply
One can apply for the scheme through any bank branch with a core banking platform. The investor should submit a filled-in APY form along with Aadhaar, mobile number and initial premium contribution. For those who do not have an Aadhaar number, they should submit the requisite KYC documents and pension proposal form.
It is mandatory to provide savings bank account details and authorisation letter to the bank with auto debit option for periodical remittance of premium.
Comments
COMMENT NOW
Comments
Comments have to be in English, and in full sentences. They cannot be abusive or personal. Please abide by our community guidelines for posting your comments.
We have migrated to a new commenting platform. If you are already a registered user of TheHindu Businessline and logged in, you may continue to engage with our articles. If you do not have an account please register and login to post comments. Users can access their older comments by logging into their accounts on Vuukle.