How to apply for Atal Pension Yojana

Atal Pension Yojana (APY) is a pension scheme launched by the government for unorganised sector workers. The scheme was announced in the Union Budget 2015-16 and was launched on June 1, 2015. As per a press release issued by the government on December 12, 2023, enrolments in the APY Scheme crossed 6 crore on an aggregate basis. In FY 2023-24 alone, the enrolment in APY crossed 79 lakh. The scheme is managed by the Pension Fund Regulatory and Development Authority (PFRDA).

The pension provided under APY is a lifelong pension that is given when the subscriber turns 60 depending on the contributions made. The same pension would be paid to the spouse of the subscriber after the demise of the subscriber and on the demise of both the subscriber and spouse, the pension wealth as accumulated till age 60 of the subscriber would be returned back to the nominee.

Pension amounts in Atal Pension Yojana

APY provides a fixed minimum pension starting from Rs 1,000 per month to a maximum of Rs 5,000 per month. At the time of enrolment, a subscriber is required to choose the amount of monthly pension he wants to receive: Rs 1,000, Rs 2,000, Rs 3,000, Rs 4,000 or Rs 5,000.

Depending on the monthly pension amount decided by the subscriber, the monthly contribution will be deducted from his bank account.

Who is eligible to open APY scheme account?

In recent years, the government has made some changes regarding the eligibility criteria in the APY scheme. From October 1, 2022, income taxpayers have been barred from opening an account under the APY scheme.

As per the NPS Trust website, "In case you join the APY scheme on or after 1st October 2022, and it is later found out that you have been an income taxpayer on or before the date of application, then your APY account will be closed. You will receive all the wealth accumulated in your account until the date of closure."

Also Read: Atal pension Yojana scheme to be closed on October 1, 2022

For non-taxpayers to apply for the APY Scheme, he/she must be a citizen of India. The age of the subscriber must be at least 18 years and not older than 40 years of age.

An individual having a National Pension System (NPS) account can also open an APY account provided eligibility conditions are met.

Also Read: Everything you need to know about APY scheme

Documents required to open APY account

To open the Atal Pension Yojana account, an individual must have their savings bank account details, Aadhaar number and mobile number handy. The savings bank account must be KYC-compliant. For online opening of account, mobile number must be linked to Aadhaar.

How to open Atal Pension Yojana account

An eligible individual can open an APY scheme account either offline (visiting bank branch, post office or any other facilitator appointed by PFRDA) or online (using Net banking facility of their savings bank account or e-NPS website).

The subscriber will have to submit a duly filled APY application form and complete the KYC process at the offline location.

To open the APY account online, one can do the same either via Net Banking facility of their savings account or on e-NPS website. To open the APY account via NPS website, one can visit to: https://enps.nsdl.com/eNPS/ApySubRegistration.html.

The KYC process can be done via offline Aadhaar, Aadhaar number and Virtual ID of Aadhaar. Mobile number should be linked to Aadhaar for online KYC process.

If you want to open an APY account using Net-banking facility, here is an example using ICICI Bank Net banking facility. According to the ICICI Bank website, follow the steps below to open APY account:
Step 1: Login to ICICIBank.com
Step 2: Click on Customer Service
Step 3: Click 'Service Request'
Step 4: Click on "Enrol for Atal Pension Yojana" from "Bank Accounts" section
Step 5: Fill-in all the required details and submit. The Atal Pension Yojana Account will be activated within 1 working day.

The auto-debit for monthly contributions will be initiated automatically irrespective of whether the pension scheme account was opened offline or online.

Contribution to APY

The monthly contribution amount depends on the age of the subscriber at the time of enrolment. The starting age of joining the scheme is 18 years and the maximum age of enrolment is 40 years. The contribution amount will be low if the subscriber joins at an early age but will increase with age.

For instance, to receive a monthly pension of Rs 5,000, a subscriber joining the scheme at the age of 18 years will have to make monthly contributions of Rs 210. On the other hand, for the same amount of pension, a subscriber joining the scheme at the age of 30 will have to make monthly contributions of Rs 577.

The monthly contribution amount will remain the same throughout the contributing period.

Charges for opening/maintaining APY account

According to the NPS Trust website, there are certain charges levied while opening and maintaining the APY account. Account opening charge of Rs 15 will be levied. Further, there will be annual maintenance charges of Rs 20 levied on the APY account. If there is a change in the pension amount (downgrade or upgrade the pension amount), then Rs 25 will be charged from the APY account. GST will be applicable as well on the charges mentioned above.

There are no transaction charges for making monthly contributions in the APY account.

Penalty for delayed APY contributions

In case of default in contributions, a penalty will be levied. Penalty is levied on the basis of the monthly contribution amount.
Penalty will be levied as follows:
(a) Rs. 1 per month for contribution up to Rs. 100 per month.
(b) Rs. 2 per month for contribution up to Rs. 101 to 500 per month.
(c) Rs. 5 per month for contribution between Rs 501 to 1000 per month.
(d) Rs. 10 per month for contribution beyond Rs 1001 per month.

What if no contribution is made in APY account

If no contribution is made, then the following will happen to your APY account
a) After 6 months account will be frozen.
b) After 12 months account will be deactivated.
c) After 24 months account will be closed.