Modi govt scheme: Atal Pension Yojana (APY) is a government-run scheme which was launched by Narendra Modi government in 2015. The pension scheme mainly focuses on the unorganised sector and investors can get a good return by investing a very small amount. An individual can start investing in the pension plan between the age of 18 and 40 years to earn a fixed minimum monthly return which ranges from Rs 1000 to Rs 5000. The return depends on the contribution and at the age when the investment was started by the depositor.
Under APY a contributor has three payment modes of contribution: monthly, quarterly and half-yearly. It means a person is required to pay Rs 84 per month to get a minimum guaranteed return of Rs 2000 per month after the age of 60. This will add up to Rs 24,000 yearly pension return after investing for 42 years, according to NSDL website. All they need to do is open a savings account either with a bank or a post office
How do you apply for Atal Pension Yojana online?
The APY subscriber form is available online on all bank websites. Customers have to download the form, fill in the required details and submit it to their banks. Other necessary documents also have to be submitted and applicants can then easily open as Atal Pension Yojana account.
Charges for default: Banks are required to collect an additional amount for delayed payments, such amount will vary from minimum Re 1 per month to Rs 10 per month.
• Re. 1 per month for a contribution up to Rs. 100 per month.
• Re. 2 per month for contribution up to Rs. 101 to 500/- per month.
• Re 5 per month for contribution between Rs 501/- to 1000/- per month.
• Rs 10 per month for contribution beyond Rs 1001/- per month.
Note: The fixed amount of interest/penalty will remain as part of the pension corpus of the subscriber.
If an individual fails to do the payment of contribution amount for six months the account will be frozen. After 12 months the account will be deactivated and after 24 months account will be closed.
– On attaining the age of 60 years: The exit from APY is permitted at the age with 100 per cent annuitisation of pension wealth. On exit, the pension would be available to the subscriber.
– In case of death of the Subscriber due to any cause: In case of death of subscriber pension would be available to the spouse and on the death of both of them (subscriber and spouse), the pension corpus would be returned to his nominee.
– Exit Before the age of 60 Years: Exit before 60 years of age is not permitted however it is permitted only in exceptional circumstances, i.e., in the event of the death of the beneficiary or terminal disease.
– APY is applicable to all citizen of India aged between 18-40 years.
– Aadhaar will be the primary KYC. Aadhar and mobile number are recommended to be obtained from subscribers for the ease of operation of the scheme. If not available at the time of registration, Aadhar details may also be submitted later stage.