Benefits and Salient Features of the Atal Pension Yojana (APY)

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The Atal Pension Yojana is a type of pension scheme that aims to help underprivileged working individuals live a decent life even after retiring.

It was launched by the Government of India in the 2015-2016 budget with the motive of helping employees who are employed in the unorganised sector.

The Atal Pension Yojana encourages the underprivileged employees of the country to save for their retirement. The scheme is regulated and all its operations are handled by the Pension Fund Regulatory and Development Authority (PFRDA).

Objectives of the scheme

The main objective of the Atal Pension Yojana implemented by the Government of India is to:

  1. The scheme is mainly aimed at the unorganised sector of the country
  2. Provision of security and protection of citizens against illness, diseases, accidents, etc

Application Process of the scheme

In order to avail of the benefits of the Atal Pension Yojana, the applicant must follow the below-mentioned steps:

  1. The APY scheme is offered by all nationalised banks of India. Individuals can visit these banks to open an APY account
  2. The online application forms are available on the bank websites in various regional languages as well, which can be downloaded by the individual
  3. The form must be duly filled in by the applicant is should be submitted at the bank
  4. Aadhar card photocopy along with a valid mobile number should also be provided

Eligibility of the scheme

The eligibility of the Atal Pension Yojana is as follows:

  1. The applicant should be a citizen of India
  2. The applicant should be between the age of 18 and 40 years of age
  3. The applicant should have a valid mobile number that is linked to their Aadhaar number
  4. The applicant should submit all ‘Know Your Customer’ or KYC details
  5. The applicant should not have an already existing APY account

Benefits and salient features of the scheme

Some of the salient features of the Atal Pension Yojana are mentioned below:

  1. Under Section 80CCD, individuals who made contributions towards the scheme are eligible for the Atal Pension Yojana tax benefits
  2. The Government of India guarantees the minimum pension that will be paid to the individual after their retirement
  3. The individuals eligible for the scheme will start receiving pension once they reach the age of 60
  4. Individuals that are bank account holders are eligible for the APY scheme
  5. Those private-sector employees who are not provided with any pension benefits can also apply for Atal Pension Yojana
  6. The applicants have an option of receiving a fixed pension of Rs 1000, Rs 2000, Rs 3000, Rs 4000, or Rs 5000 once they reach the age of 60
  7. In case of the demise of an applicant during the tenure of the scheme, the spouse can either complete the duration of the scheme or claim the contributions

Penalty charges

In case there is a stoppage in payments, the points mentioned below are applicable:

  1. In case there are no payments made for a duration of 6 months, the account will be frozen
  2. The account will be deactivated in case there have been no payments for a duration of 12 months
  3. The APY account will be permanently closed in case there have been no payments for a duration of 24 months

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