The Economic Times
English EditionEnglish Editionहिन्दी
| E-Paper
Search
+

    How to apply for Atal Pension Yojana

    Synopsis

    Atal Pension Yojana provides fixed minimum pension starting from Rs 1,000 per month to a maximum of Rs 5,000 per month. The monthly contribution amount depends on the age of the subscriber at the time of enrolment and the amount of pension to be received at the age of 60 years.

    Getty Images
    The contribution for the Atal Pension Yojana Scheme will be auto debited from your bank account.
    ET Calculator Banner
    Atal Pension Yojana (APY) is a pension scheme launched by the government for unorganised sector workers. The scheme was announced in Union Budget 2015-16 and was launched on June 1, 2015.

    Atal Pension Yojana provides fixed minimum pension starting from Rs 1,000 per month to maximum of Rs 5,000 per month. At the time of enrolment, a subscriber is required to choose the amount of monthly pension he wants to receive: Rs 1,000, Rs 2,000, Rs 3,000, Rs 4,000 or Rs 5,000. Depending on the monthly pension amount decided by the subscriber, the monthly contribution will be deducted from his bank account.

    Monthly contribution amount depends on the age of the subscriber at the time of enrolment. The starting age of joining the scheme is 18 years and the maximum age of enrolment is 40 years. The contribution amount will be low if the subscriber joins at an early age but will increase as the age increases.

    For instance, to receive monthly pension of Rs 5,000, a subscriber joining the scheme at the age of 18 years will have to make monthly contributions of Rs 210. On the other hand, for same amount of pension, a subscriber joining the scheme at the age of 30 will have to make monthly contributions of Rs 577. The subscriber will start to receive the monthly pension from the age of 60 years.

    Also Read: Everything you need to know about APY scheme

    Requirements to open APY account
    To apply for the pension scheme, a subscriber needs to have a savings bank account, Aadhaar number and mobile number.

    Applying for APY account
    There are two ways to open an APY account. One way is to visit the bank branch where one has a savings bank account. At the bank branch, the subscriber will have to submit the duly filled APY application form and complete the KYC process. As per the HDFC Bank website, if you have an account with the bank, then your KYC details will be replicated from the bank account.

    One can also open an APY account online using one's bank's Net banking facility. Banks such as State Bank of India, ICICI Bank etc. allow customers to open the pension scheme account via the Internet banking facility.

    The facility to open APY account via SBI's Net banking facility is available under the social security schemes option in the e-services tab.
    SBI-APYET Online

    ICICI Bank account holders can enol for APY scheme by following these steps:
    Step 1: Login to ICICIBank.com
    Step 2: Click on Customer Service
    Step 3: Click 'Service Request'
    Step 4: Click on "Enrol for Atal Pension Yojana" from "Bank Accounts" section
    Step 5: Fill-in all the required details and submit. The Atal Pension Yojana Account will be activated within 1 working day

    ICICI Bank account holders should ensure that their bank account is KYC-compliant before starting the enrolment process.

    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 bank branch or online.

    In case of default in contributions, a penalty will be levied. 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.
    Download The Economic Times News App to get Daily Market Updates & Live Business News.

    Also Read

    The Economic Times