Atal Pension Yojana: Pradhan Mantri APY Scheme

Pradhan Mantri Atal Pension Yojana

Finance minister Arun Jaitley in the Budget Speech of 2015 mentioned about the government-backed pension scheme for the workers in the rural and unorganized sector of India. This scheme is named after the ex-prime minister of India Atal Bihari Vajpayee as Atal Pension Yojana. It is also called as APY scheme. It was formally launched by our present Prime Minister Narendra Modi on 9th May in Kolkata.

This scheme aims to increase the number of pension schemes in India because until May 2015 only 11% of Indian population has any kind of pension scheme.

Atal Pension Scheme

What is an unorganized sector?

Atal Pension Yojana is targeting the rural and unorganized sector of India to pull it under the umbrella of pension schemes. National Commission For Enterprises (NCEUS) in the Unorganized Sector has defined Unorganized Sector in their report on ‘Conditions of Work and Promotion of Livelihoods in the Unorganized Sector’.

They said it is a sector consisting of all private enterprises owned by individuals or households which are unincorporated in nature. These groups are engaged in the production or sale of goods and services, which are operating on a proprietary or partnership basis and having less than ten working employee. In India, the informal sector consists the 90% of the workforce. Employees of Unorganized sectors have lower job security than other sectors and also a poorer chance of growth, along with no holidays and paid leaves.

Atal pension yojana, a continuation of Jan Dhan Yojana Scheme, is an initiative to secure the future of those employees. Sukanya Samriddhi Yojana also great and secure scheme launch by government of India for the girl child.

Eligibility of Atal Pension Yojana:

  • Must be an Indian Citizen
  • Within the age limit of 18 to 40 years.
  • Not a member of Statutory Social Security Scheme
  • Must be an Aadhar card bearer (it is not mandatory while applying, however, required during payment )
  • Must have a savings bank account

Contribution of Government to Atal Pension Yojana Scheme

If the enrolled is applying for this scheme before or on 31st March 2016 then the Government will contribute to his Scheme each year a maximum amount of Rs.1000 for the first five years.

But for that, your yearly contribution should be more than Rs. 2000. However, if your yearly contribution is less than Rs. 2000 then the Government will contribute half of your contribution per year.

Suppose your contribution A is less than Rs. 2000 then the Government will contribute A/2 each year for the first 5 years.

Who are eligible for the Government’s contribution?

  • You must not work in a government sector
  • You should not be a taxpayer
  • You must not work for any private sector and must not have any EPS or EPF account.

Atal Pension Yojana

How to apply:

If you are eligible to have the scheme then you can go to your bank and fill the form of APY. The date of enrolling has started from 1st June 2015, and there is no last date for applying.

Make sure you have an adequate amount of money in your account, before each month when the premium will be auto-deducted.

How will the premium be paid?

  • Half-yearly
  • Quarterly
  • Monthly

Norms for paying the premium

On the death of account holder

  • The spouse/nominee have to pay the premium
  • The nominee will also get the pension amount.

After the death of both the holder and the spouse, the nominee will get the corpus amount of 8.5 lakh.

An  Atal Pension Yojana account can be closed when you will pay the penalty and fill up the form of closing also the total amount will be refunded. For the latest government updates and information visit fsi.org.in regularly. Also check best government scheme and updates. You can also put your suggestion in below comment box.

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