Atal Pension Yojana is a pension scheme by the Government of India that focuses on helping the working poor have a steady income after retirement from their respective jobs. The Atal Pension Yojana (APY) scheme was announced by the Government of India in the 2015-2016 union budget with the purpose of helping individuals who are working in the unorganised sector.
Pension Amount: Up to Rs.5,000
Age Limit: 18 years – 40 years
Contribution Period: Minimum 20 years
Exit Age: 60 years
To provide a provision of security and protection of citizens against illness, accidents, diseases, and so on.
This scheme was introduced mainly to aim at the unorganized sector in the country.
The guarantee of minimum pension that will be paid to the individual after retirement.
Under Section 80CCD, individuals are eligible for Atal Pension Yojana tax benefits for the contributions made towards the scheme.
All bank account holders are eligible to avail of this scheme.
The person will start receiving a pension once they reach the age of 60.
Private sector employees who are not provided with any pension after retirement are also allowed to apply for the Atal Pension Yojana scheme.
You have an option of receiving a fixed pension of Rs.1,000, Rs.2,000, Rs.3,000, Rs.4,000, or Rs.5,000 once you reach 60 years of age.
In case of an individual’s demise during the scheme, your spouse can either claim the contributions or complete the duration of the scheme.
One can collect the APY form from any nearby branch office of any participant bank.
One can also download and get a print of the form from the official websites of the participant banks, provided they have the facility for the same.
One can download the APY account opening form from the official website of the Pension Fund Regulatory and Development Authority (PFRDA).
Step 1: Addressing the form to the Branch Manager
A person has to address the form to the Branch Manager. You can find out the name of your Branch Manager by calling or visiting the bank. Enter your bank name and branch.
Step 2: Enter Bank details
Fill the form in BLOCK/ CAPITAL letters. First, you are required to provide your bank details. Enter your bank account number, bank name and bank branch. Filling these details are compulsory.
Step 3: Enter Personal details
Tick the box that is applicable that indicates whether you are ‘Shri’, ‘Smt’ or ‘Kumari’. Tick 'Shri’ if you are a male applicant. Tick ‘Smt’ if you are a married female applicant. Tick ‘Kumari’ if you are a single female applicant.
Married applicants have to enter their spouse’s name.
Write your full name, date of birth, and age.
Provide your mobile number, email address and Aadhaar Card number.
You can then nominate someone and state their relationship to you.
Note: A nominee will receive your contribution in case of your death. If the nominee is a minor, you need to provide their date of birth and guardian's name. You must also state if the nominee has any other statutory social security schemes and if they are income taxpayers.
Step 4: Pension details
Contribution between Rs.1,000 and Rs.5,000 with options in the form as Rs.1,000, Rs.2,000, Rs.3,000, Rs.4,000, and Rs.5,000 can be done by the applicant. The box below titled; ‘Contribution Amount (Monthly)’ is to be left blank as the bank will fill that in after calculating the amount you have to pay every month to receive the pension.
The calculation will be based on your entry age. For example, for a pension of Rs.2,000, if your entry age is 25 years, you will have to pay Rs.151 per month.
Step 5: Declaration and Authorisation
You need to fill in the date and place. You can either enter the signature in the document or put a thumb impression. By signing the document, you declare that you meet the Atal Pension Yojana eligibility criteria, and that you have read and understood the terms and conditions of the scheme. You declare that all the information you have written is correct as far as you know. If any changes have to be made to the information provided, you will contact the bank immediately. Also, one has to declare that he/she does not have any account under NPS (National Pension System). You will be held liable for any false or incorrect information knowingly provided.
Step 6: Details to be filled in by the bank
The last section of the Atal Pension Scheme form, titled ‘Acknowledgement - Subscriber Registration for Atal Pension Yojana (APY)’ is to be filled in by the bank. It is an acknowledgment from the bank that they will subscribe to the Atal Pension Yojana Scheme for you. After you submit the form, the bank agent will fill it out.
If you have reached 60 years of age: You can exit this scheme with a complete annuitization of the pension amount. You will have to visit the bank and apply for your pension.
You can exit the scheme before turning 60 years old only under exceptional circumstances such as terminal illness or death.