All you need to know about Atal Pension Yojana

The Atal Pension Yojana is Government run pension scheme which is open to all citizens of India. The APY scheme is managed by the Pension Fund Regulatory and Development Authority under the National Pension Scheme. An applicant can opt for a monthly pension that could be 1000, 2000, 3000, 4000 or 5000 rupees, which will start at the age of 60 years. The amount of premium an individual gets will begin after the age of 60 years. The amount of pension that an individual will get depends on the age at which they decide to join the APY scheme and the amount they contribute every month. 

This scheme is available to all the Indians in the age group of 18 years to 40 years. The pension starts after a subscriber has attained the age of 60 years. The Pension amount can be easily selected as monthly Rs. 1000, Rs. 2000, Rs. 3000, Rs. 4000 and Rs. 5000. The contribution amount will then be calculated accordingly. The contribution which is made into the Atal Pension Yojana is eligible for tax deduction under section 80CCD. 

What are the steps for opening an Atal Pension Yojana account?

1.      Fill up and submit the APY scheme registration form at their local bank branch. 

2.      Provide the bank account number, mobile number and Aadhar number.

3.      The first contribution amount will get deducted from the linked bank account at the time of opening the account.  

4.      A customer’s bank will issue acknowledgement no. or the PRAN to the customer.

5.      The subsequent contributions will then be automatically deducted from the individuals bank account.

The account opening form for the Atal Pension Yojana can easily be gotten from their nearby bank branch which participates in the scheme. But, the APY application form can easily be downloaded for free from different websites like the Pension Fund Regulatory and Development Authority official website. This application form is available on the official websites of different financial institutions as well which include a lot of major banks. 

If the customer applying for the scheme does not have an account with the bank they are applying through, they will need to open a new bank account with a scheduled bank that has a good banking platform. But once the bank account is functioning smoothly, the steps will be same as existing bank account holders. After the form has been filled out completely, the application form should be signed by the subscriber and submitted to the financial institution. The APY also contains an acknowledgement section for the subscriber registration for Atal Pension Yojana. 

The investment details matter less in the APY scheme than the NPS because the customer will get a guaranteed pension. But the investment return will only matter if the profits that are generated over time go over the pension amount. In these cases, a high pension amount or high returns for nominees will be available on death of the subscriber.