The Atal Pension Yojana (APY) is a government-backed pension scheme for India’s unorganized sector. This scheme introduced in the Union Budget of 2015 – 2016, and it targeted individuals who were employed in the unorganized sector. It provides fixed monthly pensions ranging from Rs.1,000 to Rs.5,000 after the age of 60, based on contributions.
Atal Pension Yojana is mainly targeted at the poor, the under-privileged, and workers in the unorganized sector. To avail the benefits of this pension scheme, citizens have to make a systematic investment. Best of all, this fund is managed by the Pension Fund Regulatory and Development Authority (PFRDA). It is completely safe and reliable.
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Atal Pension Yojana Information
| Scheme Name | Atal Pension Scheme |
| Pension Amount | Up to Rs.5,000 |
| Age Limit | 18 to 40 years |
| Contribution Period | Minimum 20 years |
| Exit Age | 60 years |
| Automatic Debit | Monthly contributions auto debited; ensure sufficient funds. |
| Assured Pension | Choose from Rs.1,000 to Rs.5,000 |
| Contribution Flexibility | Adjust contributions annually. |
| Withdrawal Conditions | Exit at 60 years; early withdrawal only due to death or terminal illness. |
| Tax Exemption | Exemptions under Section 80CCD; max Rs.1,50,000 plus Rs.50,000 for APY contributions. |
What is Atal Pension Yojana?
The Atal Pension Yojana (APY) is a government scheme that provides Indian citizens with a secure future. This scheme is specifically designed for middle- and lower-income groups. The minimum age for joining the Atal Pension Yojana is 18 years, and the maximum age is 40 years.
The plan offers subscribers a choice of pension amount ranging from ₹1,000 to ₹5,000 per month, depending on their contributions and age at the time of enrolment.
Atal Pension Scheme Eligibility
- Indian citizen aged 18 to 40 years.
- Active mobile number and bank account linked to Aadhaar.
- Complete ‘Know Your Customer’ (KYC) requirements.
- No existing APY account.
- Minimum contribution period of 20 years.
- Ineligible for other social welfare programmes.
- Swavalamban Scheme beneficiaries are eligible and transferred to APY.
How to Open an Atal Pension Yojana Account?
The following are the steps to open an Atal Pension Yojana Account:
- Visit your local bank branch, and submit dully filled PAY registration form
- Provide the required details, such as:
- Bank account number
- Aadhar Number
- Mobile number
- At the time of account opening, the first contribution amount will be deducted from your linked bank account
- Acknowledgment Number or PRAN Number will be issued by the bank
- The further contributions will be done automatically from your bank account
This pension program is primarily for people working in the informal economy such as housekeepers, maids, deliverymen, gardeners, etc. By joining the Atal Pension Scheme, one can receive a fixed amount as pension every month after the age of 60.
The Atal Pension Yojana (APY) offers tax exemptions under Section 80C of the Income Tax Act, 1961. This scheme is quite economical and the contribution amount is affordable for individuals from different income groups.