Small Business Financial Services

Updated on Nov 19, 2019

View more like this | Visit India, UN | Contact Maya Kashyap
Image for QUICK GUIDE: ATAL PENSION YOJANA with ID of: 3867086
The Government of India is worried about the old age earnings security of the working impoverished and is focused on encouraging and facilitating them to conserve for their retirement. To talk about the long-term risks among the employees in the unorganized division and to assist them in saving for their retirement. The Government of India, therefore, declared a new policy called Atal Pension Yojana APY in the 2015-16 budget. The APY is directed toward all nationals in the unorganized sector. The system is regulated by the Pension Fund Regulatory and Development Authority (PFRDA) through NPS architecture. E-governance services can be provided to assist people.

Who can subscribe to APY?

Any Citizen of India can enroll for the Atal Pension Yojana online. The following are the eligibility criteria:

●The age of the applicant should be between 18 - 40 years.
● He or She should have a savings bank account or open a savings bank account.
●The future applicant should have a mobile number, and its details are to be provided to the bank during enrollment.
Government co-contribution is accessible for five years, i.e., from 2015-16 to 2019-20 for the subscribers who enlist the policy during the duration from June 1, 2015, to December 31, 2015, and who are not a part of any Statutory Social Security Schemes and are not earnings taxpayers.

Benefits of Atal Pension Yojana (APY)

The Atal Pension Scheme will give rise to warranty to aging Indians while at a similar time facilitate a culture of savings and undertaking among the lower and lower-middle-class categories of society. The vulnerable sections of the community may appreciate one of the most substantial benefits of the policy. The administration of India agreed to contribute 50% of the user’s payment or INR 1,000 a year (whichever is lower) for five years. This payment, however, was appreciated only by those who were not earning taxpayers and those who enrolled in the policy before December 31, 2015.

How much allowance will be obtained under APY?

Safeguarded least pension of Rs 1,000/-, 2,000/-, 3,000/-, 4,000, and 5,000/- per month will be provided at the age of 60 years, relying on the payments by the subscribers.

What is the protocol for beginning the APY Account?

1.Approach the bank bureau, where an individual’s savings bank statement is held.
2.Fill up the APY enrollment form.
3.Furnish Aadhaar/Mobile Number.
4.Guarantee maintaining the mandatory balance in the savings bank account for the transfer of monthly payment.

How will I know the status of my contribution?

The rate of payments will be conveyed to the enrolled mobile number of the SubscriberSubscriber by way of intermittent SMS alerts. The Subscriber will also be obtaining a manual Statement of Account.

What is the withdrawal protocol from APY?

A. On reaching the age of 60 years:
The withdrawal from APY is authorized at the period with a 100% annuitisation of pension income. On retreat, the pension would be accessible to the Subscriber.
B. In case of demise of the Subscriber due to any cause:
In case of the passing of Subscriber, the allowance would be accessible to the partner. On the death of both of them (Subscriber and partner), the pension corpus would be reimbursed to his nominee.
C. Departure Before reaching the age of 60 Years:
The Exit before age 60 would be allowed only in extraordinary occurrences, i.e., in the incident of the death of a successor or terminal ailment.
View all posts by Maya Kashyap | Contact Maya Kashyap
goodideazs, LLC is not affiliated with the authors of this post nor is it responsible for its content, the accuracy and authenticity of which should be independently verified.