Atal Pension Yojana: The Atal Pension Yojana (APY) is a government initiative to provide financial security for people working in the unorganised sector, in their retirement. As per an ET report, the Pension Fund Regulatory and Development Authority (PFRDA) introduced a master circular on January 31, for an online facility to simplify the onboarding process and Aadhaar linking for APY subscribers.
What PFRDA master circular states? “To enhance accessibility and simplify the subscription process, Protean e-Governance Technologies’ Central Recordkeeping Agency (PCRA) has introduced eAPY. This digital facility utilises Aadhaar eKYC/XML/Virtual ID, providing an additional option for seamless digital enrollment, lead generation mode that can be used by the Well-wishers (someone known to the subscriber) or by the individuals who are not able to approach the proper channel to open an APY account and online feature for migration of Swavalamban subscribers to APY. This eliminates the need to visit a bank branch, saving time, effort, costs, and offering significant convenience.”
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How to register for eAPYThe eAPY service comes at no cost, and there are no extra fees associated with its usage. Prospective APY subscribers can register through the PCRA portal or the “APY and NPS Lite” mobile app using the following methods:
- Offline XML-based Aadhaar KYC
- Online Aadhaar-based eKYC
- Virtual ID
Key considerations for eAPY registration
- During eAPY registration, ensure your details match those in bank records.
- Make sure your savings account has enough balance for the first APY payment, based on your chosen pension amount (Rs 1000 – Rs 5000).
- Your APY account will activate after confirming your Aadhaar information, including Name and Date of Birth.
If your online registration is rejected, PoPs-APY will inform you of the reasons and suggest corrections before resubmission.
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Atal Pension Yojana pension amountsAPY offers a fixed minimum pension ranging from Rs 1,000 to Rs 5,000 per month. Upon enrollment, subscribers must select their desired monthly pension amount from options of Rs 1,000, Rs 2,000, Rs 3,000, Rs 4,000, or Rs 5,000.
Eligibility for Atal Pension Yojana schemeTo be eligible for the APY Scheme, individuals must be non-tax paying Indian citizens aged between 18 and 40, with a minimum age requirement of 18. Recent government modifications, effective from October 1, 2022, prohibit income taxpayers from opening APY accounts.
According to the NPS Trust website, if a person joins the APY scheme on or after October 1, 2022, and it’s later discovered that they were an income taxpayer before the application date, their APY account will be closed. They will receive the accumulated wealth in their account until the closure date.
Opening an APY account via net bankingFor those interested in opening an APY account using net banking facilities, institutions like ICICI Bank provide a simple process. Follow these steps:
- Log in to ICICIBank.com
- Navigate to Customer Service and select “Service Request.”
- Click on “Enroll for Atal Pension Yojana” under the “Bank Accounts” section.
- Fill in the required details and submit. The APY account will be activated within one working day.
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Atal Pension Yojana – FAQs answered
When is the contribution due date for APY? APY contributions will be automatically debited from the subscriber’s savings bank account or post office savings bank account. For monthly contributions, this can occur on any day of the particular month. For quarterly contributions, it’s any day of the first month of the quarter, and for half-yearly contributions, it’s any day of the first month of the half-year.
What happens if you’re late with your APY contribution? If your APY contribution is late, you’ll be charged overdue interest.
How are contributions invested in APY? Contributions are invested according to investment guidelines set by PFRDA for various schemes including APY. These funds are managed by entities like SBI Pension Fund Pvt. Ltd, LIC Pension Fund Ltd, and UTI Retirement Solution Ltd.
