Atal Pension Yojana (APY) Scheme {अटल पेंशन योजना}

The Atal Pension Yojana (APY) scheme was launched by the Government of India in the budget of 2015-2016 with an aim to help individuals who are working in the unorganized sector. These unorganized sectors are maids, gardeners, delivery boys, etc.  This scheme is the extended version of the Swavalamban Yojana because this was not accepted well by the people of the country. So the government started Atal Pension Yojana.

  • Under this scheme a person will get up to Rs.5, 000 is per month.
  • Tax benefits are also provided under this scheme.
  • The Indian Government has allocated funds to co-contribute towards the scheme.
  • The scheme has no risk.


All details about the Atal Pension Yojana are mentioned below:

  1. The scheme Atal Pension Yojana was basically launched to help poor people who are working in the unorganized sector to get income as well as to feed their families.
  2. This scheme will help poor people to receive regular income after their retirement.
  3. The scheme motivates them to save money for their good future.
  4. This scheme’s operations are regulated by the Pension Fund Regulatory and Development Authority (PFRDA).
  5. This scheme is the best scheme for an individual to save for his future.
  6. The goal of this scheme is to provide help to those people who are worrying about their future and any illness, accidents, or diseases in old age. This scheme will provide them security.
  7. The person can choose according to their choice to get a pension every month of Rs 1000, Rs 2000, Rs 3000, Rs 4000, or Rs 5000 on attaining the age of 60.
  8. The pension will be provided on the basis of the individual’s age as well as the amount of the contribution.
  9. In case of the death of the beneficiary, the contributor’s spouse is able to claim the pension.
  10. If the contributor and his/her spouse both died then the nominee will be given the entire amount.
  11. Same if the nominee dies then his/her spouse will get the entire amount.
  12. As per the guidelines by the government of India, the investment amount of the individual is maintained by the Pension Funds Regulatory Authority of India (PFRDA).
  13. The government of India also makes contributions annually of Rs. 1000.
  14. If the candidate is taking benefit of this scheme then he is not allowed to take any other statutory social security schemes like Employee’s provident fund etc.

Features and Benefits

The main features, as well as benefits of the Atal Pension Yojana, are mentioned below:

  1. This scheme has no risk as the government of India guarantees to give the pension to the candidate after retirement.
  2. The candidate is eligible for Atal Pension Yojana tax benefits as he is contributing to the scheme as per the Section 80CCD.
  3. The candidate who has a bank account is eligible to apply for Atal Pension Yojana.
  4. The candidate will be provided a pension after retirement or when he will reach the age of 60.
  5. All the employees who are working in the private sector and not provided by the pension are also eligible to apply for Atal Pension Yojana.
  6. The candidates have the option to get pension of Rs.1,000, Rs.2,000, Rs.3,000, Rs.4,000, or Rs.5,000 when they reach 60 years of age.
  7. In case of death before the age of 60 years, his spouse will be given the pension.

Important Facts to Know

  1. The amount will be automatically debited from the bank account of the individual. The candidates make sure that they are maintaining minimum balance in their account after the debit.
  2. The candidate is able to increase the premium account as per his choice. If you want to make any changes you have to visit the bank and talk to your manager about changes.
  3. If in any case the candidate defaults on payment he has to pay a penalty. The candidate has to pay Rs. 1 for one month for a contribution of every Rs. 100.
  4. If the candidate default on payments for continue six months then the account will be ceased and if it continues to 1 year then the account will be get closed and the remaining amount will be paid back to the candidate.
  5. The candidates are not allowed to withdraw money before the age of 60 years but the interest that you got on your investment can be withdrawn.
  6. Only in the case of death or any serious illness the candidate’s nominee is allowed to get the entire amount back.
  7. If in case you stop your investment in the middle then only your amount, as well as interest, will be paid to you. In this case, you will not get any pension after the age of 60 years.

Eligibility for APY Scheme

The candidates have to fulfill the eligibility criteria if they want to get the benefit of the Atal Pension Yojana. All the details about eligibility criteria are mentioned below:

  • The candidate must be a citizen of India.
  • The age of the candidate is between 18 to 40 years.
  • The candidate is allowed to make his contributions for a minimum 20 years.
  • The candidate must have an Aadhaar card that is linked with the bank account.
  • The candidates have to provide a valid mobile number.
  • The candidate who is getting benefits from any other government scheme is not eligible for Atal Pension Yojana.

How to Apply?

The candidates have to follow the simple process to get registered under Atal Pension Yojana to get benefits. All the steps are mentioned below:

  • The candidate can visit any nationalized bank to start the Atal Pension Yojana account because all the nationalized banks provide the scheme.
  • The candidate can download the application form online by visiting the official website by going to any bank.
  • The candidate is able to download application form in their preferred language. As the application form is available in English, Hindi, Bangla, Gujarati, Kannada, Marathi, Odia, Tamil, as well as Telugu.
  • Now the candidate has to fill all the details in the application form and submit it to the bank.
  • The candidate has to provide a valid mobile number.
  • The candidate has to submit a photocopy of the Aadhaar card.
  • When your form will be approved you will be sent a confirmation message on your registered mobile number.

Withdrawal Procedure

  1. When this scheme was started there is no option to withdraw your money before reaching the age of 60 Years. But now there are some changes made by the government in the Atal Pension Yojana withdrawal procedure.
  2. When the candidate will reach the age of 60 years he is allowed to exit the scheme with a complete unitization of the pension amount.  The candidate has to visit the bank for this.
  3. The candidate is allowed to exit the scheme is some exceptional cases that are terminal illness or death.
  4. In case the candidate dies before the age of 60 years then his spouse will get the pension. In case of death of the spouse also then the entire amount will be given to the nominee.

Penalty Charges

The penalty will be taken from the candidates in case of delayed payments. All the details about Atal Pension Yojana penalty charges are explained below:

  1. In case of contributions of up to Rs.100 per month, Penalty of Re.1 will be charged.
  2.  In case of contributions between Rs.101 and Rs.500 per month, the Penalty of Re.2 will be charged.
  3. In case of contributions between Rs.500 and Rs.1, 000 per month, Penalty of Re.5 will be charged.
  4. In case of contributions above Rs.1, 001 per month, Penalty of Re.10 will be charged.
  5. All the charges are fixed depends on your pension amount.
  6. If there is no payment for 6 months then the account will be frozen.
  7. If there is no payment for 12 months then the account will be deactivated.
  8. If there is no payment for 24 months then the account will be closed permanently.

Frequently Asked Questions

Q. Can someone now apply for APY scheme online?

No, currently there is no option to apply for Atal Pension Yojana online. You must have to go to your bank as well as fill out the forms.

Q. Which documents are required for applying?

To apply for the Atal Pension Yojana, the candidate has to fill the application form submit a photocopy of the Aadhaar Card. Only these documents are required.

Q. How to check if the pension scheme is activated?

When your form will be successful gets approved you will get a message on your registered mobile number which will inform you about your pension activation.

Q. When is the last date to apply?

The Atal Pension Yojana Scheme has no last date. You are allowed to submit your application before June 1st for the coming year to join the scheme. This scheme is rehabilitated on June 1st every year.

Q. What is the age criterion to join?

The minimum age to get enrolled under this scheme is 18 years. The college students are also allowed to get benefits from this scheme. The maximum age to invest in this scheme is 40 years. The candidate maximum invests for 20 years under this scheme. After the age of 60 years, you will get a pension every month for your good life.

Q. Is the money invested in this scheme is safe? Will, there any changes in the scheme when the government changes?

The Atal Pension Yojana scheme is passed in the budget session. There is no government allowed to discontinue this scheme. If there are any changes made in the scheme your money will be safe. The government has only the right to change the name of the scheme nothing else.