The Indian government is continuously making efforts to provide an equal living standard to the unorganised section of our society. In the same practice, the Indian Prime Minister, Mr Narendra Modi, introduced a government-backed pension plan, Atal Pension Yojana, on May 9, 2015, in Kolkata. The initiative was launched with the motive to create a universal social security system and is focused on the Indian unorganised sector workers.
The APY initiative is regulated by the Pension Fund Regulatory and Development Authority (PFRDA). At first, the Yojana was mentioned in the 2015 budget plan speech by Finance Minister Arun Jaitley, and then, PM Narendra Modi launched it with complete execution. Let’s now understand more about this scheme, its benefits and Atal Pension Yojana registration.
What is Atal Pension Yojana?
Formerly known as Swavalamban Yojana, Atal Pension Yojana is a pension scheme in which subscribers can make contributions to their APY accounts till the age of 60 years. The depositors can then receive a monthly pension of Rs 1,000 or 2,000, or 3,000/- or 4,000 or 5,000/-. The pension will completely depend on the contribution made by the investor.
Atal Pension Yojana: Eligibility criteria
In order to invest in the scheme and avail of its benefits, a contributor needs to fulfil the eligibility criteria as mentioned below:
1. The age of the contributor should be more than 18 years and less than or equal to 40 years.
- The contributor needs to have a savings bank account or a post office savings bank account.
- The contributor should provide Aadhar and mobile numbers to the bank during the registration to facilitate receipt of periodic updates on the APY account.
How to apply for Atal Pension Yojana Online?
To make the scheme easily accessible to everyone. All major Indian banks provide APY accounts to their customers. Now, follow these steps to apply for Atal Pension Yojana Online:
Step 1: As mentioned above, you need to have savings accounts to apply for the scheme. If you already have one, then visit the official website of the bank and log in with your net banking credentials.
Step 2: Look for the Atal Pension Yojana online form and download it.
Step 3: Fill out the form and carefully provide the details.
Step 4: Do not forget to enter your Aadhar card details.
Step 5: Now, add the nominee details and select the pension scheme ranging from Rs 1,000 to 5,000.
Step 6: Submit the signed form.
Note: You can make APY payments directly from your account using net banking, or you can also link your account to the APY for auto-deduction. Moreover, you can also consider online payment apps or UPI apps like Airtel Thanks to make the deposits.
How to apply for Atal Pension Yojana Offline?
If you find the online process a little tricky, you can proceed with the offline process.
Step 1: Visit your nearest bank branch.
Step 2: Collect the APY form and fill in the details carefully.
Step 3: Attach photocopies of relevant documents like Aadhar cards.
Step 4: The bank will provide you with an acknowledgement after a successful receipt of the form.
Documents required to apply for this scheme
You’ll require the following documents to apply for the scheme:
- An identity proof i.e., an Aadhaar card
- Address proof i.e., Voter ID or Aadhaar card
- DOB verification document i.e., SSLC certificate
What are the benefits of the Atal Pension Yojana?
The Atal Pension Yojana is one of the most beneficial social security schemes as it guarantees a pension sum to meet the expenses of the contributor once they turn 60. Moreover, some of the top benefits are:
1. Tax benefits: The government offers tax benefits on the contributions made to the APY scheme. The tax benefits can be availed under section 80CCD (1B), to the tune of Rs 50,000 and above Rs. 1.5 lakhs. The government took this initiative to encourage people to invest in the Yojana.
- Death benefits: After the death of the contributor, the benefits of the APY scheme get shifted to the spouse of the contributor. In case, of the death of the contributor and the spouse, the nominee will get the predefined corpus amount for a particular pension slab.Also, in case of the death of the contributor before the age of 60, the spouse will have an option to continue with the scheme or close the account and collect the invested amounts with gains on it.
In conclusion, Atal Pension Yojana is a decent scheme for Indian citizens and especially in the unorganised sector. Also, as a responsible citizen please spread the word!