Atal Pension Yojana (APY) is a retirement scheme for unorganized sector workers Atal Pension Yojana proposes a set minimum retirement benefit starting from Rs 1,000 per month up to an upper cap of 5,000 per month. The scheme was introduced in the Union Budget 2015-16.
A monthly contribution will be deducted from his bank account, based on the monthly pension amount determined by the contributor. The amount of the monthly contribution relies on the subscriber's age at the time of registration. The minimum age cap is 18 years for accessing the scheme and the maximum age for registration is 40 years.
Documents needed to register for APY
A subscriber needs to have a savings bank account, an Aadhaar number, and a mobile number to register for the pension scheme.
How you can register for Atal Pension Yojana:
1. All the national banks provide the pension yojana, so, you can visit the bank with which you have your account and register yourself for APY.
2. The registration forms are available online, as well as, at the bank branches. You can download the form and submit it at the bank or you can fill and submit it at the bank itself.
3. Provide a valid mobile number.
4. Attach the photocopy of your Aadhar card.
Once your application is approved, you will receive a confirmation SMS on your registered mobile number.
It is worth mentioning that the amount that is to be contributed will depend on the age at which you register yourself for the pension yojana. The pension slab you opt for, ranging from Rs 1,000 to Rs 5,000, and the time of contribution you can choose amidst monthly, half-yearly, or quarterly.
Contribution to APY
The contribution for the scheme will be auto-debited from your bank account irrespective of whether the pension scheme account was opened via a bank branch or online.
In case of default in contributions, a penalty will be levied. A penalty will be levied as follows:
(a) Rs. 1 per month for contribution up to Rs. 100 per month.
(b) Rs. 2 per month for contribution up to Rs. 101 to 500/- per month.
(c) Rs. 5 per month for contribution between Rs 501/- to 1000/- per month.
(d) Rs. 10 per month for contribution beyond Rs 1001/- per month.
If no contribution is made, then the following will happen to your APY account
a) After 6 months account will be frozen.
b) After 12 months account will be deactivated.
c) After 24 months account will be closed.
