Know More About Atal Pension Yojana Scheme

Atal pension yojana is a pension scheme, launched by PM Narendra Modi, for those citizens whose jobs don’t give them the security of a pension. In terms of the contributor’s death, his spouse can claim the money. The contributor has to join the account with a minimum contribution of rs. 1000 and a maximum contribution of rs. 12000 per year.

APY intended to help poor workers of unorganised sectors. Many poor people have to work to support their family even after retirement. APY allows them to receive a home income after retirement.

The subscriber or the depositor will receive rs. 1000/- to rs. 5000/- monthly pension through his APY account. In the application form, you will have the opportunity to choose your monthly pension amount. Then the bank will inform you how much you have to deposit every month, based on your choice.



  • The applier must be an Indian citizen
  • Have to be able to contribute every month in due date
  • Must have an active mobile number
  • Details must be filled appropriately
  • People from 18 to 40 years can apply for APY
  • Adhar details and mobile number is mandatory during KYC. Adhar card details can be added later if not available during registration
  • Subscriber will start receiving pension once he reaches at the age of 60


  • Tax: Under section 80 CCD tax benefits were made
  • Guarantee: From rs. 1000/- to rs. 5000/- guaranteed pension will be received after a certain period. The pension will rise depending on the actual returns on the contribution
  • Pension claim by spouse: Contributor’s spouse can claim the pension in case of the contributor’s or subscriber’s death.
  • Nominee: Even the pension money can be claimed if the spouse and contributor both are not alive. In that nominee will receive the pension (if any ).

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Procedure to Apply:

Online application form:

  1. Open the online site of the bank where you opened the NPS account.
  2. Now find out APY details on the website. There you can see an “Apply now” button.
  3. By clicking the button, you will be redirected to another webpage and have to put your aadhar card details.
  4. Put necessary details and also enter your and your nominee’s details.
  5. Now select the pension amount and frequency and e-sign your form to confirm the enrollment.

Offline application form:

 If you already have an NPS account, you can apply for APY. Every bank doesn’t have an APY facility. You can use for APY in a few banks.

The offline APY enrollment process is pretty straightforward. You only have consulted with one of the bank staff and ask him to give you the APY application form. Provide every detail, and you are good to go.

Penalty Charges:

An APY account holder can be charged a penalty if the account holder fails to make the required payment on the due date. The penalty charge varies on the amount of the contributor’s deposit. The penalty charges is described in below,

Contributors deposit Penalty charges
Rs. 100/- per month Rs. 1/- P.m.
Rs. 101/- to 500/- per month Rs. 2/- P.m.
Rs. 501/- to 1000/- per month Rs. 5/- P.m.
More than Rs. 1001/- per month Rs. 10/- P.m.

If somehow the contributor or the account holder stops depositing the following rules will be applied:

  • After six months of non-payment, the APY account will be frozen
  • After 12 months of non-payment, the APY account will be deactivated
  • After 24 months of non-payment, the APY account will be closed

The rules were announced so that an account holder always remembers to maintain his account. Even a little lack of maintenance can cause massive hassle, and you may lose your APY account.

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Withdrawal Procedure:

An individual who needs the APY account can apply at the age of minimum 18 years and a maximum of 40 years. As the applicant’s age will increase, the monthly pension amount also will increase.

Naturally, an applicant can’t withdraw any amount before his age of 60. But Atal Pension Yojana withdrawal rules have been modified.

  • When the subscriber reaches his 60’s, he or she can close his account by completely annuitization of pension amount. In that case, subscribers have to visit his bank manager because there is no online process is available for the withdrawal
  • It’s not possible if you intended to withdraw the amount before subscriber reach at the age of 60. Only in exceptional circumstances, the amount can be withdrawn before the age of 60. Only in case of the contributor expires or in case of terminal illness, the amount can be withdrawn. And if the contributor and spouse both expire, the pension amount will be received by nominee.


Here are further details, which is needed to know before opening an APY account:

  • The Atal Pension Yojna is not beneficial for all individuals. Individuals, who are working for an extended period and not allowed to receive any pension, are applicable for the scheme.
  • Individuals who joined APY scheme from 1st June 2015 to 31st December 2015 will receive a co-contribution from the government for five years. But applicants, who fall under statutory social security schemes, cannot accept the co-contribution.
  • Adhar card number is primary KYC document of APY, but it’s not mandatory. Not only subscribers but also spouses and also nominee’s aadhar card number will be needed during KYC.
  • Many individuals have the misconception that one subscriber can have multiple APY accounts at a time. But that is not right. One subscriber can have only one APY account.
  • An APY account holder can change his monthly contribution amount whenever needed. But they can change it only once in a year.
  • An important reason behind the requirement of the active mobile number is that an individual can check his balance through the messages he will receive after every specific period time.

Atal Pension Yojana is a huge opportunity for poor Indian citizens to secure their future. To know more details visit your nearest bank.

Author: Naveen E

This is E.Naveen Kumar full time Content Writer, SEO, Digital marketing Expert, founder of Really enjoying playing cricket at free times. Being a Btech Graduation from Computer Science stream Selected full-time blogging as my Profession.

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