The Indian Government is striving hard to make life of the old people much easier and convenient by supporting them financially. Introduction of the Atal Pension Yojana is one such step towards the betterment of the elderly people. This welfare scheme involves providing income security to the poor who are working in the unorganised sector.
The plan includes encouraging them to save enough funds before they retire. No doubt, this would boost their financial confidence and would support them in old age when they actually need it the most.
The Atal Pension Yojana scheme is being administered by the Regulatory and Development Authority (PFRDA) and would greatly benefit people employed in the unorganised sector.
What is Atal Pension Yojana?
Atal Pension Yojana or APY guarantees a minimum pension of ₹1k, ₹2k, ₹3k, ₹4k and ₹5k to the workers who are the citizens of India and are employed in the unorganised sector. One could claim these monetary benefits once the 60 years age threshold reaches. The amount of pension scheme varies from ₹1k to ₹5k, which is totally dependent on the subscriber’s amount of contribution to the scheme.
Eligibility to subscribe in Atal Pension Yojana
Anyone who is a citizen of India can join this pension scheme. However, one should need to meet the following eligibility criteria:
- The minimum age to be eligible is 18 years and must not exceed 40 years while applying.
- The person must have a Savings Bank account in his/her name or he/she can opt to open a new one before applying.
- The applicant must possess a mobile number which must be registered with the bank with full details.
The Government co-contribution is available to the subscribers who apply from 1st June 2015 till 31st Dec 2015. The Government is willing to support the workers who do not have any social security cover and not fall under the taxable income.
How much pension will be received under Atal Pension Yojana
The Indian Government has made it clear that the amounts of pension will range from ₹1,000 to ₹5,000 per month. The amount will be greatly influenced by the beneficiary’s monthly contribution to the scheme.
What is the benefit in joining Atal Pension Yojana scheme?
The Government co-contribution for 5 years will be either ₹1,000 per annum or 50% of the total amount of contribution, whichever is lower. The account holders will benefit from this co-contribution starting from 2015 until 2019.
How are the contributions of Atal Pension Yojana invested?
The Government’s contribution to the scheme will be made in line with the instructions set by the Indian Ministry of Finance. The scheme will be strictly administered and observed by the PFRDA.
How to Apply for Atal Pension Account?
- Contact the bank where you have a savings account.
- Ask for the APY registration form.
- Fill it carefully and provide the details of your Aadhaar card.
- Mention your mobile number and contact details in the form.
- Maintain the required minimum balance in your savings account.
- Your contribution will get deducted from your account on a monthly basis.
Whether Aadhaar Number is compulsory for joining the scheme?
To submit Aadhaar card while applying for the scheme is not a compulsion and neither such condition is set mandatory by the authorities. However, it is for the subscriber’s own benefit as this document helps in identifying the beneficiary and associated nominees.
It could help you in claiming pension rights and settle down the disputes, if any, in the future. This is the reason for recommending Aadhaar card for the APY account registration.