The Pension Fund Regulatory and Development Authority’s Atal Pension Yojana aims to provide pension cover for the poor, underprivileged, and unorganised sector workers. The government initiative seeks to create a universal social security system for all Indians under the broader National Pension System (NPS) umbrella.
Subscribers will receive guaranteed minimum monthly payout of one of the following sums: ₹1,000, ₹2,000, ₹3,000, ₹4,000, or ₹5,000 after the age of 60 years, based on the contributions made by the subscriber after joining the scheme.
In case the account is closed before you reach 60 years of age, only subscriber’s contribution plus interest earned is paid. You will lose the government’s co-contribution or the interest earned on that amount.
Atal Pension Yojana: Key FAQs answered
Can a central or state government or Public Sector Undertaking (PSU) employee or NPS member subscribe to APY? Yes, any Indian citizen within the age group of 18-40 years, can join irrespective of their employment status or employer. An existing NPS subscriber can also subscribe to APY, if they meet the basic eligibility criteria.
How can I open an APY account? Approach the bank or post office branch where you have an Aadhaar-linked savings account to join APY. You can also open a new account and complete Aadhaar-KYC to gain access to the pension scheme.
Is Aadhaar compulsory to join the scheme? Yes. APY is included under the Section 7 of the Act, which prescribes that individuals eligible to receive benefits such as pension from the scheme, are required to furnish proof of possession of Aadhaar or undergo Aadhaar enrolment.
Can I open an APY account without a savings account? No, a savings bank account or post office savings bank account is mandatory to join APY.
How can I check status of my contributions? Subscribers will be periodically intimated about activation of PRAN, balance in the account, contribution credits etc. through SMS alerts on the registered mobile number. You can also access the details through the NSDL’s APY app. Besides this, also receive a physical Statement of Account once a financial year at their registered address.
Can a minor open an APY account? No. A minor cannot open an APY account.
Can a non-resident Indian open an APY account? Yes, NRIs in the 18-40 age group, with a bank account with APY point of presence (PoP) is eligible to open an account. PoPs are entities appointed by the to provide services to all the citizens of India to open and operate their NPS accounts.
What happens if a subscriber becomes a non-citizen? The scheme is only open to Indian citizens. So, if a subscriber becomes a non-citizen, their APY account will be closed and the net actual interest earned on contributions (after deducting account maintenance charges) will be refunded. However, the government co-contribution, and the interest earned on the government co-, shall not be returned to such subscribers.
What is the helpline number? Toll Free Helpline number for APY Scheme is 1800-110-069
Who is eligible to apply for Atal Pension Yojana?
- The scheme is open to all Indian citizens between 18-40 years of age.
- Since October 2022, Indians who pay income tax are deemed ineligible.
- You must have an Aadhaar-linked savings account and valid mobile number.
- You must commit to making contributions for at least 20 years.
- Since it replaced the erstwhile Yojana, all previous beneficiaries were automatically migrated to APY.
Does APY provide any tax benefits?
Taxpayers can avail exemption on contributions made by individuals under Section 80CCD of the Income Tax Act, 1961 for up to ₹1,50,000.
Additional of ₹50,000 for contributions to the APY can be claimed under Section 80CCD(1B).
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