Tuesday 19 May 2015

Atal Pension Yojna (APY)-New Pension Scheme


Government of India launched three more Jan Suraksha Schemes called Pradhan Mantri Jeevan Jyoti Bima Yojana (PMJJBY), Pradhan Mantri Suraksha Bima Yojana (PMSBY) and Atal Pension Yojna (APY). Atal pension Yojna(APY) is pension scheme for citizens of India focussed on the unorganized sector workers. Under the Atal pension Yojna (APY) scheme, a guaranteed minimum pension of Rs. 1,000/-, 2,000/-, 3,000/-, 4,000 and 5,000/- per month will be given at the age of 60 years depending on the contributions made by the subscribers. 

Who can subscribe/enroll for APY?
Any Citizen of India can join APY scheme. The following are the eligibility criteria;
  • The age of the subscriber should be between 18 – 40 years.
  • He / She should have a savings bank account/ open a savings bank account.
  • The prospective applicant should be in possession of mobile number and its details are to be furnished to the bank during registration.
Government will co-contribute 50% of the total contribution or Rs.1, 000 per year, whichever is lower, for 5 years, i.e., from 2015-16 to 2019-20 for the subscribers who join the scheme during the period from 1stJune, 2015 to 31stDecember, 2015.

Government co-contribution will not be available income tax payers or who are covered under statutory social security schemes like,

·         Employees’ Provident Fund & Miscellaneous Provision Act, 1952 (EPF)
·         The Coal Mines Provident Fund and Miscellaneous Provision Act, 1948
·         Assam Tea Plantation Provident Fund and Miscellaneous Provision, 1955
·         Seamens’ Provident Fund Act, 1966
·         Jammu Kashmir Employees’ Provident Fund & Miscellaneous Provision Act, 1961
·         Any other statutory social security schemes.

How much pension will be received under APY?
Guaranteed minimum pension of Rs 1,000/-, 2,000/-, 3,000/-, 4,000 and 5,000/-per month will be given at the age of 60 years depending on the contributions by the subscribers.

How open account in APY?
·         Approach your bank branch where you have a savings account.
·         Fill the APY Registration Form.
·         Provide Aadhaar/Mobile number.
·    Ensure sufficient balance in saving account for monthly transfer. Because your monthly investment in this scheme will be through an auto-debit facility.

Your initial investment date is considered as monthly auto-debit date of investment.

Whether Aadhar is mandatory?
No, it is not mandatory. However, Aadhaar is a primary KYC document.

How many APY accounts I can open?
You can open only one APY account.

Whether one can increase or decrease the contribution?
Yes, you can increase or decrease the contribution as and when required.

How to withdraw from APY?
  • On attaining the age of 60 yrs-You have to fill the exit form with 100% anuitisation of pension wealth. Your pension starts immediately.
  • In case of death of the subscriber, the pension will be available to spouse. On the death of both subscriber and spouse, the pension corpus would be returned to the nominee.
  • Exit before 60 years of age is permitted only case of the death of a subscriber or terminal disease.
Will I get any statement of transactions?
Yes. Periodic statement of APY account will be provided to the subscribers.

What will happen if required or sufficient amount is not maintained in the savings bank account for contribution on the due date?
In case you have not sufficient balance on auto-debit date in your savings account, then the account will be treated as default. Banks may collect the penalty for this. Such penalty varies from Rs. 1 to Rs.10 per month. Government sets a limit for this penalty as below.
  • Rs.1 per month penalty if your monthly contribution is up to Rs.100.
  • Rs.2 per month penalty if your monthly contribution is up to Rs.101 to Rs.500.
  • Rs.5 per month penalty if your monthly contribution is up to Rs.501 to Rs.1, 000.
  • Rs.10 per month penalty if your monthly contribution is beyond Rs.1, 001.
In case you discontinue the contribution, then following actions will be taken.
  • After 6 months, the account will be frozen.
  • After 12 months, the account will be deactivated.
  • After 24 months, the account will be closed.

For more details about Atal Pension Yojna (APY) call at Toll free number 1800-180-1111 /1800 -110-001 or visit http://jansuraksha.gov.in/

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