Atal Pension Yojana Scheme – Information, Steps of Application

Prime Minister Narendra Modi recently launched three initiatives for securing the life of poor people. At a function in Kolkata he announced about these plans offers  insurance benefits for the 12.5 crore people who have taken advantage of the Pradhan Mantri Jan Dhan Yojana.

This is as a part of progressing from jan dhan or financial inclusion to jan suraksha – social protection. All these are focusing on workers in the unorganised sector to offer increased coverage. All these are operated via one bank account and all you need is a single bank account. Read in detail about Atal Pension Yojana Schemes. Benefits of these 3 schemes goes to workers in unorganized sector like beedi workers, fishermen, weavers etc. 

Pension

Atal Pension Yojana

Atal Pension Yojana scheme is good for workers in the unorganized sector to provide pension. This is highly beneficial when those people are not covered by other pension or provident fund schemes. Atal Pension Yojana scheme assures minimum payout of Rs 1,000 per month and maximum of Rs 5,000 per month at the age of 60 years. This is greatly depends upon, how much money they put into the scheme over these 20 years. 

In order to get a monthly pension of Rs 1,000, an 18-year old employee needs to put at least Rs 42 a month for the next 42 years. If the worker joining the scheme late, when she/he is older around 42, the monthly contribution should be Rs 291 for 18 years to get a Rs 1,000 pension at the age of 60. Government will match monthly contributions of employees for five years, if they enroll in the scheme before the end of the year. 

Atal Pension Yojana scheme mirror like the existing Swavlamban pension scheme which is started in 2010. The scheme encourage workers in the unorganized sector to save money for their future needs. In many aspects this scheme can be say equal to Swavlamban version 2.0. Overall the exact benefits for workers are still unclear. 

Key Features of Atal Pension Yojana (APYS)

  • For Pension
  • Age minimum 18 years and maximum 40 years
  • Fixed pension of Rs 1000 – Rs 5000 per month at age of 60 years
  • Contribution of money depend upon the age and amount of pension you want
  • Government contribution is 50% of your contribution or Rs 1000 whichever is lover for 5 years
  • Bank account is mandatory
  • Payment process via Auto debit facility 
  • Penalty for delay in payment is Rs 1 to Rs 10 depending on your monthly money contribution
  • Scheme closed after 24 months
  • Nominee is mandatory
  • Invest Rs 42 to Rs 290 per month depending on your age to get Rs 1000 as pension for a month
  • Withdrawal procedure: At 60 years exit permitted with 100% of annuitization of pension scheme
  • In case of death the pension will go to spouse. If both are dead the corpus go to nominee
  • Exit before 60 years is possible in exceptional circumstances

How to Apply for Atal Pension Yojana

To apply for Atal Pension Yojana, visit the bank which holds your Pradhan Mantri Jan Dhan Yojana account and ask for procedure. Make sure that your account has linked with Aadhar card number. You can also visit your nearest bank with required documents to open a new account (Pension account). You can also download application form for  Atal Pension Yojana from official Government websites. Fill the form and submit it before 1st June 2015. Duration is only one year and next year you have to again fill and submit the form for renewal. 

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One thought on “Atal Pension Yojana Scheme – Information, Steps of Application

  1. appaso gangaram mohite
    May 15, 2015 at 9:42 pm

    I am 35year old

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