Atal Pension Yojana (APY) is a government-backed pension scheme, this scheme is specially targeted at the unorganized sector, for the people who work under the unorganized sector, so they can receive regular income after retirement. This scheme was formerly known as Swavalamban Yojana. This pension scheme was launched on May 9th in Kolkata by Prime minister Narendra Modi. Under the APY Scheme tax benefit is offered which is risk-free and a pension up to Rs 5,000/- is paid per month for the scheme holder.
Eligibility for APY
- Age Limit- 18 to 40 years
- Exit Age - 60 years
- Contribution Period - Minimum 20 years
- Pension Amount - Up to Rs 5,000/-
How to get the APY form
- Get the physical APY application from any nearby bank (operated by the government).
- Also, you can download the APY copy from the official website of the banks- Pension Fund Regulatory and Development Authority (PFRDA).
What is the Process to Apply for APY Scheme?
- Get the APY Application
- Fill in all the details required
- Provide a valid mobile number
- Photocopy of Aadhaar and PAN should be provided with the APY application.
- Once approved you will receive a confirmation message from the bank.
What is the procedure for APY Withdrawal?
- If the depositor has reached 60 years of age, then he/she can withdraw from the scheme with complete annualization of the amount.
- In case of critical illness the depositor can withdraw if turning 60 years, or in case of death the spouse of the depositor will receive the amount.
- If both the depositor and spouse are expired, then the nominee will receive the amount.
Atal Pension Yojana is one of the best investment plans for the private sector employees or any unorganized sector people, as under this scheme the government guarantees to pay at least a minimum pension to the depositor after retirement. All banks account holders are eligible for this scheme, so one could easily apply for this scheme, apart from that this scheme helps in tax deduction under section 80C. Once the depositor reaches the age of 60, he/she will receive the pension regularly every month. If the depositor demise during the scheme the nominee or the spouse will receive the amount.