Part of the broader National Pension System (NPS), the Atal Pension Yojana (APY) provides pension cover for poor, underprivileged, and unorganised sector workers between 18-40 years who are not income tax-payees.
Earlier this week, the Bank of Maharashtra (BoM), State Level Bankers’ Committee (SLBC) and conducted an outreach drive in Thane district focused on enrolment in the scheme, particularly for those from the unorganised sector, PTI reported citing officials.
BoM officials stressed on the importance of coordinated banking efforts to extend social security to underserved populations, noting that APY’s guaranteed monthly benefits can secure financial stability for citizens, it added.
A government initiative administered by the Pension Fund Regulatory and Development Authority, it aims to create a universal social security system in India. Today, we check the rules for premature withdrawal and how to claim maturity payouts.
How to open a APY account?
You can open an APY account through your bank or post office using an -linked savings account. You can also open a new bank or post office account and complete Aadhaar-KYC to gain access to the pension scheme.
What is the pension payout under APY?
subscribers are set to receive guaranteed minimum monthly pension 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 after joining the scheme.
How to apply for Atal Pension Yojana: Stepwise guide
- To open an account online, you will have to check if your bank’s allows registration via netbanking facility.
- If it does, search for APY on the bank’s website and register for the scheme using the auto-debit facility.
- For offline, you can visit your bank or for the APY form and fill in the required fields.
- You will need to submit a copy of your Aadhaar card along with the form.
- Submit the filled form and KYC at the bank or post office where you have an account.
- The bank will give you an acknowledgement receipt for the form.
- Once your application is approved, you will receive a confirmation message on your registered mobile number.
Atal Pension Scheme: How to make pension claim?
APY has tenure till the subscriber reaches 60 years of age, post which you are eligible for 100% annuitisation of accumulated pension.
A subscriber wishing to claim their payout is required to submit a request to their bank or post office. Once accepted, you will start receiving monthly pension until death.
Can I make early or premature withdrawal?
Yes. However, early withdrawal is only allowed in exceptional cases such as death of the subscriber, or requirement of corpus for terminal disease.
In case of death of subscriber, the pension will be paid to the spouse or .
Further, in case the account is closed before you reach 60 years of age, only the contribution amount and interest earned is paid. You will lose the government’s co-contribution or the interest earned on that amount.
Disclaimer: This story is for educational purposes only. We advise investors to check with certified experts before making any investment decisions.