Atal Pension Yojana: Introduced by Prime Minister Narendra Modi on June 1, 2015, the Atal Pension Yojana is a significant initiative focusing on providing pensions upon reaching the age of sixty. To benefit from this scheme, individuals need to invest between the ages of 18 and 40.
Under this arrangement, beneficiaries receive a monthly pension ranging from ₹1000 to ₹5000, determined by their age and the sum they invested.
In the unfortunate event of an early demise, the family of the beneficiary is entitled to receive benefits from this plan. The Atal Pension Yojana stands as a crucial social security initiative, promoting financial security and well-being for individuals in their post-retirement years.
Atal Pension Yojana
The Atal Pension Yojana requires applicants to deposit the premium every month. Upon reaching the age of 60, the government provides financial assistance in the form of a monthly pension to support individuals in their old age.
Beneficiaries must be between the ages of 18 and 40 to be eligible for the scheme. The premium varies based on the age of entry into the program, with a beneficiary joining at 18 paying a monthly premium of Rs 210, while those entering at 40 would pay premiums ranging from Rs 297 to Rs 1,454.
This structured premium system encourages early participation, ensuring financial support for individuals in their later years.
The Pension Fund Regulatory and Development Authority (PFRDA) has recently introduced a new service for Atal Pension Yojana and National Pension Scheme 2023 account holders, allowing them to contribute using the UPI (Unified Payment Interface).
This addition provides a convenient and efficient payment option, eliminating the previous reliance solely on online banking for depositing contributions.
The incorporation of the UPI payment system makes contributing to the National Pension System more accessible and straightforward. The UPI system features a “real-time payment process,” allowing account holders to transfer money between accounts in a matter of minutes.
This enhancement in payment options is designed to streamline the contribution process for the benefit of NPS account holders.
Account holders who are interested in contributing to this scheme through UPI should follow the steps outlined below.
- You must first visit the National Pension Scheme’s official website.
- You then need to input your PAN number.
- You must now input the OTP that appears on your registered email address and mobile number.
- Following that, you must decide between the NPS Tier 1 and 2 alternatives.
- You must now select the virtual account (VA).
- Your bank application will then be sent, and you’ll get an acknowledgement number after that.
- You must now choose to proceed with the UPI payment option.
- Enter your UPI number and virtual account number after that.
- Proceed to make your payment by entering your UPI PIN.
- You can use UPI to make payments under the National Pension Scheme in this manner.
Atal Pension Yojana Overview
|Name of scheme
|Atal Pension Yojana
|Started by them
|By the Central Government
|People from unorganized sectors of the country
Atal Pension Yojana Tax Benefits
To make payments under the Atal Pension Yojana using the UPI method, you need to follow a step-by-step process:
- Visit the Official Website:
Start by visiting the official website of the Atal Pension Yojana.
- Input PAN Number:
Enter your PAN number as part of the authentication process.
- OTP Verification:
Input the One-Time Password (OTP) received on your registered email address and mobile number.
- Choose NPS Tier:
Decide between the NPS Tier 1 and Tier 2 options based on your preferences and requirements.
- Select Virtual Account (VA):
Choose the virtual account (VA) that suits your needs.
- Bank Application Submission:
Submit your bank application, and you will receive an acknowledgement number.
- Opt for UPI Payment:
Proceed by selecting the UPI payment option.
- Enter UPI and Virtual Account Numbers:
Input your UPI number and virtual account number.
- Make Payment:
Complete the process by entering your UPI PIN to finalize and make the payment.
By following these steps, you can efficiently use UPI to make payments under the National Pension Scheme, adding a convenient and secure payment option to your contribution process.
To avail the benefits of the Atal Pension Yojana, individuals must have a savings bank account or a post office savings account. Additionally, the Atal Pension Yojana is now covered under Section 7 of the Aadhaar Act.
This means that any citizen intending to apply for this scheme will need to undergo Aadhaar authentication or provide verification of their Aadhaar number during the application process.
The inclusion of the Atal Pension Yojana under the Aadhaar Act’s Section 7 signifies the importance of Aadhaar authentication in ensuring the accurate and secure enrollment of citizens into the scheme.
This requirement adds an additional layer of identity verification, contributing to the overall integrity and effectiveness of the Atal Pension Yojana.
Atal Pension Yojana withdrawal
- Once a subscriber reaches the age of sixty, they are eligible to withdraw from the Atal Pension Scheme. In this instance, the consumer will receive the pension following the pension withdrawal.
- Should the subscriber pass away: The subscriber’s spouse will get the full amount of the pension in the case of the subscriber’s passing. Furthermore, the pension corpus will be given back to their designee if both pass away.
- Removal prior to reaching sixty years of age: The Atal Pension Scheme does not permit withdrawals prior to the age of sixty. But the department has approved it in certain extraordinary cases. For instance, in the event of a terminal stoppage or the beneficiary’s death.
Charges under the Atal Pension Yojana in the event of default
|₹100 For contributions up to per month
|₹101 For a contribution of ₹ 500 per month
|₹501 For a contribution of ₹ 1000 per month
|₹1001 For the above contribution
Atal Pension Yojana Investment
Under the Atal Pension Yojana, if a person invests Rs 210 per month by saving Rs 7 daily, they can receive a pension of up to Rs 60,000 annually. This investment needs to be made by the individual by the age of 18. An interesting aspect of this scheme is that it offers tax exemption benefits under Section 80 of the Income Tax Act.
Operated by the Pension Fund Regulatory and Development Authority through the National Pension Scheme, this initiative provides individuals with a structured and tax-efficient way to secure their future.
If you’re interested in reaping the benefits of this scheme, you can apply and become a participant in the Atal Pension Yojana. This scheme not only encourages regular savings but also offers a valuable avenue for financial security and tax advantages.
Subscriber Information Alerts
- Subscribers to the Atal Pension Yojana receive updates by SMS regarding their account balance, contribution credit, and other related matters.
- Via SMS, the beneficiary can also update non-financial information like the nominee’s name, address, phone number, etc.
- All clients can use SMS on their mobile phones to receive information about subscriptions, auto debit of accounts, and account balances.
Atal Pension Yojana Enrollment and Payment
- All eligible citizens can join the Atal Pension Yojana after providing auto debit facility in the account.
- It is mandatory for the account holder to keep the required balance in his savings account on the due date to avoid late payment penalty.
- On the basis of payment of the first contribution, monthly contribution payment has to be made every month.
- If the beneficiary is not paying on time, then the account will be closed and if there is any contribution made by the Government of India, it will also be confiscated.
- In order to get the benefit of this scheme, if any wrong information is provided by the account holder, then in this case the government contribution will be forfeited with penal interest.
- It is mandatory to have an Aadhaar card to get the benefit of this scheme.
- The beneficiary can choose the option of receiving a pension between 1000 to 5000. For which the beneficiary will have to submit his contribution on time.
- The amount of pension can also be reduced or increased by the beneficiary.
- The amount of pension can be reduced or increased only in the month of April.
- After joining the Atal Pension Yojana, each subscriber will be provided with an acknowledgement slip in which the guaranteed pension amount, due date of contribution payment etc. will be recorded.
Atal Pension Yojana Enrollment Agency
- The bank may designate mutual fund agents, BC/current non-banking aggregators, and microinsurance agents as facilitators for operational activities in the capacity of POPs or aggregators.
- The Bank may give them access to the incentives that PFRDA and the government have provided.
- The Pension Fund Regulatory and Development Authority oversees the program.
- Enrolling subscribers under APY will be done through the institutional structure of NPS.
- PFRDA will prepare the Atal Pension Yojana offer paper and the account opening form.
Funding of Atal Pension Yojana
- The government would give seniors a fixed pension guarantee.
- Aside from this, the government will pay ₹ 1000 year or 50% of the total contribution, whichever is less.
- To encourage people to join the Atal Pension Yojana, promotional and development initiatives will also be covered, including incentives to the contribution collection agency.
Some important instructions of Atal Pension Yojana
- Each beneficiary of the Atal Pension Yojana will get from the Central Government ₹ 1000, or half of the pension sum.
- All beneficiaries who applied under this program between June 1, 2015, and March 31, 2016, who are not recipients of any other social security program and who pay income taxes, are eligible to receive this benefit.
- Section 7 of the Aadhaar Act includes the Atal Pension Yojana. Giving your Aadhaar number is now required in order to benefit from this initiative.
- It is a requirement of this scheme that the applicant has a savings account in order to receive benefits.
- The applicant must provide details on the candidate at the time of application.
- This scheme is only available to Indian citizens. A beneficiary’s account will be terminated and his deposit amount repaid if he moves away from the area during the duration of this pension.
- The client also has the option to change the amount of pension.
- The subscribers will be required to pay an annual rate of 8% for the difference in grant amount in order to enhance their pension.
- The excess amount of contribution that was collected from the subscriber will be returned to them along with the return created, should they choose to lower the amount of pension.
- In the event of an error, POP-APYSP and CRA will split the ₹50 price that the consumer must pay for an upgrade or downgrade.
Atal Pension Yojana Key Facts
- The Central Government introduced the Atal Pension Yojana in May 2015.
- Even after you retire, you can continue to receive a monthly pension through this arrangement.
- All individuals who work in the unorganized sector are eligible for this program.
- You must invest for 20 years in order to benefit from this strategy.
- This investment can be made by anyone between the ages of 18 and 40.
- You get the amount of pension after turning sixty years old.
- Pensions of ₹1000, 2000, 3000, and 5000 are available under this system.
- The amount of your pension is determined by the age at which you began investing and the monthly premium you have paid.
- A premium of ₹ 100 per month must be paid if you are 20 years old and wish to receive a pension of ₹ 2000. A premium of ₹ 248 per month must be paid if you want to receive a pension of ₹ 5000.
- If you are 35 years old and want a ₹ 2000 pension, you will need to pay ₹ 362 in premiums, and ₹ 902 in premiums for a ₹ 5000 pension.
- The government will also pay 50% of the total sum under this scheme in addition to your investment.
- The benefit of this plan will be given to the account holder’s heirs if they pass away before turning 60.
- Having a bank account is required in order to participate in this program.
- Only citizens who do not fall under any income tax bracket are eligible to benefit from the Atal Pension Scheme.