Know What is Atal Pension Yojana Eligibility and Benefits
The Atal Pension Yojana is a beneficial social security legislation, in which, an individual has to make monthly contributions till he or she is 60 years of age, and after that, a defined monthly pension amount will be paid out. The scheme was introduced in the year 2015 as a replacement for the earlier Swavalamban scheme.
Atal Pension Yojana eligibility:
The Atal Pension Yojana eligibility criteria have been kept very simple so that a wide range of people can become a part of the plan.
The APY eligibility is as follows:
- Must be an Indian citizen.
- Must be between the age of 18 to 40 years
- Must have a bank account in any bank
This opens the APY for contributions from people from all economic strata. The only requirement for the scheme is to have a valid and operational bank account with the required balance. The scheme will operate through direct debits made in the bank account of the individual. It is the individual’s responsibility to maintain a minimum balance in the bank account.
Atal Pension Yojana Benefits and Features:
- The contribution can be made monthly, quarterly or half yearly. The amount of contribution depends on the age of the contributor, frequency and the amount of pension that is desired after reaching 60 years of age.
- The contribution increases as the age of the contributor increases
- There are 5 different monthly pension options, Rs. 1,000, Rs. 2,000, Rs. 3,000, Rs. 4,000, Rs. 5,000. The contribution increases as the monthly pension amount increases.
- These contributions cannot be withdrawn from the scheme before the scheme is over. Partial withdrawal is prohibited. Only in exceptional circumstances, such as terminal illness, the contributions and interest earned thereon will be allowed to be withdrawn.
- Offline applications for APY are allowed. Offline applications have to be done by filling up a form and submitting it to the respective bank branch as required.
- The subscriber will pay a sum as account maintenance charges. These will be charged from the account and the gains made on investments. No further contribution will be taken for account maintenance charges.
- In case of default in contribution, a penalty will be charged as Re. 1 per Rs. 100 of contribution per month.
- Investment or contributions made to the Atal Pension Yojana are eligible for deduction under Section 80CCD (1B) to the tune of Rs. 50,000 over and above the deduction under Section 80C.
- In case of death of the subscriber after the age of 60 years, the spouse will get a monthly In case of death of subscriber before 60 years, the spouse has an option to continue contributions or to close the account and withdraw the contribution and earnings on it.
- In case of death of the spouse and the contributor after pension is started, the nominee will get the predefined corpus marked for the pension slab chosen.
You can read more about the benefits of the Atal Pension Yojana Account here.
To get your very own Atal Pension Yojana Account in HDFC Bank, you need to visit your closest bank branch. Click to get started!
* The information provided in this article is generic in nature and for informational purposes only. It is not a substitute for specific advice in your own circumstances.