Atal Pension Yojana: What is the Procedure for Opening an Account?

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Atal Pension Yojana is a scheme launched by the government in the union budget 2014-15. This is a guaranteed pension scheme and is administered by the Pension Fund Regulatory and Development Authority (PFRDA).

The APY will be focused on all citizens in the unorganized sector, who join the National Pension System (NPS) administered by the Pension Fund Regulatory and Development Authority (PFRDA) and who are not members of any statutory social security scheme.

Also read: A Look At The Atal Pension Yojana And What it Means For Pensioners

Atal Pension Yojana: What is the Procedure for Opening an Account?

Under the APY, the subscribers would receive the fixed pension of Rs 1000 per month, Rs 2000 per month, Rs 3000 per month, Rs 4000 per month, Rs 5000 per month, at the age of 60 years, depending on their contributions and age of entry.

The main benefit of the scheme is government will also co-contribute 50 per cent of the total contribution or Rs 1,000/- per annum, whichever is lower, to the eligible APY account holders who join the scheme during the period 1st June, 2015 to 31st December, 2015.

What is the Procedure for Opening APY Account?

Savings account

One can open the Atal Pension account where the savings account is held.  Savings bank account is mandatory to open Atal pension yojana account. The amount will be auto debited monthly from the subscriber.

Registration form

One can approach their bank branch where savings account is held. Fill the Atal Pension Yojana registration form and submit the same. One can also fill the form online and submit.

Provide Aadhaar/Mobile Number

One should provide a valid phone number as status and other details will be sent through SMS to registered mobile number.

However, Aadhaar number is not mandatory to open this account. One has to go through all the Know Your Customer (KYC) related procedure in absence of aadhaar.

Minimum Balance

Ensure keeping the required balance in the savings bank account for transfer of monthly contribution.

Most of the public sector banks offer Atal Pension Yojana account.

Also read: New Pension Scheme 2015: Should You Invest In the Same?

What happens when there is no payment?

Non-maintenance of required balance in the savings bank account for contribution on the specified date will be considered as default.

Banks are required to collect additional amount for delayed payments, such amount will vary from minimum Re 1 per month to Rs 10/- per month.

Periodical information to the subscribers regarding balance in the account, contribution credits etc. will be intimated to APY subscribers by way of SMS alerts.

Exit details

Once an individual complete 60 years, the subscribers will have to submit the request to the associated bank for drawing the guaranteed monthly pension.

Exit before 60 years of age is not permitted, however, it is permitted only in exceptional circumstances, i.e., in the event of the death of beneficiary or terminal disease.

The subscribers can opt to decrease or increase pension amount during the course of accumulation phase, as per the available monthly pension amounts. However, the switching option shall be provided once in year during the month of April.

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Story first published: Monday, July 6, 2015, 11:14 [IST]
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