Atal Pension Yojana (APY) is a government scheme announced by the Indian Government in the 2015-16 budget. The APY is focussed on all citizens in the unorganized sector which is administered by the Pension Fund Development Authority (PFRDA) through NPS architecture.
APY ensures a guaranteed minimum monthly pension for the subscribers ranging between Rs 1000 and Rs 5000 per month.
Atal Pension Yojana (APY) is open to all bank account holders. The Central Government would also co-contribute 50% of the total contribution or Rs 1000 per annum, whichever is lower, to each eligible subscriber account, for 5 years.
Charges for default
Under APY the individual subscribers shall have an option to make the contribution on a monthly basis. Banks are required to collect an additional amount for delayed
payments under APY. The amount will vary from minimum Rs 1 per month to Rs 10/- per month as shown below:
- Rs 1 per month for the contribution up to Rs 100 per month.
- Rs 2 per month for the contribution up to Rs 101 to 500/- Per month.
- Rs 5 per month for contribution between Rs 501/- to 1000/- per month.
- Rs 10 per month for contribution beyond Rs 1001/- per month.
The fixed amount of interest or penalty will remain as part of the pension corpus of the subscriber.
If the subscriber discontinues the payments of contribution amount, will lead to the following:
• After 6 months account will be frozen.
• After 12 months account will be deactivated.
• After 24 months account will be closed