APY or Atal Pension Yojana is a minimum guaranteed-benefit pension scheme in which the subscriber is entitled to receive a monthly pension between Rs. 1000- Rs. 5000 from 60 years of age as per his fixed amount of contribution towards the account.
The scheme further allows the subscriber to increase or decrease the pension amount based on the different available pension amount slabs. This can be done during the accumulation phase as an inherent feature of the scheme and accordingly the difference shall be refunded or needs to be paid towards the scheme, when decreasing or increasing the pension amount.
Say, someone who is aged 30 years and opts to receive Rs. 1000 from 60 years will need to contribute Rs. 116 per month until attaining 60 years of age. Nonetheless, if he at the age of say 35 years wishes to secure Rs. 5000 as pension amount, then the account can still be upgraded to provide higher pension. And likewise, the downgrade is also possible.
For the change either ways i.e. upgrade or downgrade of the pension account, the bank needs to be informed by filling up the form and an authorization has to be given in case of upgradation for the additional contribution that needs to be made. In case of a downgrade, differential amount will be refunded directly to the subscriber's account linked to the APY scheme. The different available modes for contribution into the scheme are monthly, quarterly or half-yearly i.e made through the auto-debit facility from the subscriber's bank account.
Online and offline method to upgrade or downgrade APY account:
The upgrade or downgrade of the pension amount under APY can be made once in a year and is chargeable. Banks charge Rs. 25 as an upfront fee which is to be paid by the subscriber and another Rs. 25 as CRA charges will be deducted from the individual's APY account.
Visit the link https://npslite-nsdl.com/CRAlite/APYUPDNGradeView.do. Here you can know the differential amount that is to be contributed or refunded back based on the new pension amount selected.
You need to provide your Permanent Retirement Account Number (PRAN) along the new pension amount.
Under the APY scheme, you can choose to get Rs. 1000, Rs. 2000, Rs. 3,000, Rs 4,000 or Rs. 5000 as pension amount from 60 years of age.
Likewise, for downgrading the APY account, you need to visit https://npslite-nsdl.com/CRAlite/APYDNGradeView.do and enter the PRAN number and revised or lowered pension amount to know the differential that you get as refund.
To revise the pension amount through the offline method, subscriber needs to fill the form and submit it at bank where the APY account is maintained. The form can be downloaded using the link https://npscra.nsdl.co.in/nsdl/forms/Form_to_Upgrade-Downgrade_Pension_under_APY.pdf. The subscriber is asked to specify the upgraded or downgraded pension amount which he or she wishes to receive from 60 years of age. Thereupon, bank will provide the revised contribution that needs to be made by the subscriber.