Atal Pension Yojana: The total enrollments under the government’s retirement benefits scheme Atal Pension Yojana have crossed 4.01 crore as on March 2022 out of which more than 99 lakh APY accounts were opened during FY 2021-22, the finance ministry has recently notified. Public sector banks including the State Bank of India, Indian Bank, Bank of India, Bank of Baroda and Central Bank of India achieved annual target in the Public-sector Bank category, the ministry said. The Atal Pension Yojana, or APY scheme offers a foxed pension of up to Rs 5,000 to subscribers, after they have crossed the age of 60. It is a government-backed social security scheme for senior citizens.
“Out of the total enrolments under APY as on 31st March 2022, nearly 80 per cent subscribers have opted for Rs 1,000 pension plan and 13 per cent for Rs 5,000 pension plan. Out of the total APY subscribers 44 per cent are female subscribers while 56 per cent are male subscribers. Further, out of the total APY subscribers, 45 per cent are aged between 18 and 25 years,” the finance ministry statement noted.
What is Atal Pension Yojana?
Atal Pension Yojana is the guaranteed pension scheme of Government of India administered by PFRDA. It was was launched on May 9, 2015, to provide old-age income security particularly to the citizen in the unorganised sectors. Subscribers get a fixed amount of pension every month under this scheme after they turn 60, depending on their contributions made in the past. APY is managed by the Pension Funds Regulatory Authority of India (PFRDA).
APY Eligibility
The APY scheme allows any citizen of India between the age group of 18-40 years to join through the bank or post office branches where one has the savings bank account. The subscriber must additionally make contributions for at least 20 years in order to be eligible. Apart from this, APY subscribers should also have a valid mobile number and a bank account linked with Aadhaar.
Key Features of Atal Pension Yojana (APY)
– A guaranteed sum of Rs 1,000 to Rs 5,000 is provided by the government, based on the subscriber’s contributions made over the years. This is given out on a monthly basis.
– The monthly pension is provided to the subscriber till he or she is alive. The same pension would be paid to the spouse of the subscriber after the demise of subscriber and on 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.
– The contributions you make under this Atal Pension Yojana scheme, can avail income tax benefits under Section 80CCD (1B) of the Income Tax Act.
– Subscribers can voluntarily exit from Atal Pension Yojana subject to certain conditions, on deduction of government co-contribution and return or interest thereon.
– The minimum pension in APY scheme is guaranteed by government. If a subscriber fails to accumulate corpus to get minimum pension, the government will fund the remaining amount.
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