Atal Pension Yojana

The Atal Pension Yojana (APY) is a retirement Yojana for those citizens of India centered on the unorganized sector employees. Under APY, a minimum pension of Rs 1,000 / - or 2,000 / - or 3000 / - or 4000 or 5000 / - per month at age 60 will be guaranteed on the basis of benefaction by consumers. Any citizen of India can combine APY Yojana.

• The era of the client ought to be between 18 to 40 yrs.

• He must possess a Savings Bank Account in Post Office / Savings Bank

The potential applicant may offer the Aadhaar and a cellular amount to the lender during enrollment to facilitate timely receipt of upgrades into the APY account. But, Aadhaar card isn't compulsory for registration.

A retirement gives a monthly income to individuals when they aren't earning:-

• Potential earnings reduces with age

• The rise of the nuclear family - the migration of earning members

• Cost of living increase

• Increase longevity

• Fixed monthly income guarantees dignified life in older age

The minimum pension will be guaranteed by the government under the Atal Pension Yojana in the sense that such reduction will be funded by the government if the actual return on pension contribution is reduced during the contribution period. On the other hand, if the actual returns on pension contributions are higher than the returns in the contribution period for the minimum guaranteed pension, then such additional benefits will be credited to the customer's account which will give the customers enhanced plan benefits.

The government will make a co-contribution of 50% of the total contribution or Rs. 1000 per year, whichever is less, to each eligible customer who joins the scheme between 1 June 2015 to 31 March 2016 and who is a member of any other social security scheme. Not a beneficiary and not an income tax payer. The co-contribution of government will be given for 5 years in between the financial year 2015-16 to 2019-20.

At present, under the National Pension System (NPS), the customer is eligible to get tax benefits for contribution and investment return thereon. In addition, the purchase price of an annuity is also not taxed on exit from the NPS and only the pension income of the customers is considered a part of the normal income, imposing the suitable marginal rate applicable for the customer. A similar tax treatment is applicable to APY customers.

The contribution can be made at monthly / quarterly / half yearly intervals from the savings bank account / post office savings bank account of the customer through auto debit facility. The monthly or quarterly or half-yearly contribution of payment depends on the preferred monthly pension and the age of the customer at the time of acknowledgement. Contribution for APY can be paid on any Specific date of the month through Savings Bank Account or Post Office Savings Bank Account, on any day of the first month in case of monthly contribution or the first month of the quarter in case of quarterly contribution On any day of or in the case of half-yearly contribution on any day of the first month of the half-year.

Customers should keep a sufficient amount in their savings bank accounts / post office savings bank account to avoid any overdue interest for the due date delay contribution. Monthly / Quarterly / Half yearly contributions can be deposited in Savings Bank Account / Post Office Savings Bank Account on the first date of month / quarter / half yearly. However, if the customer's savings bank account / post office savings bank account has the last insufficient balance on the last day of the first month / last day of the first quarter / last half of the first half, it will be treated as a default and with overdue interest for delayed contribution to the next Payment must be made in the month Banks have to charge Rs 1 per month of delay of Rs 100 for every delayed monthly contribution.

For quarterly / half yearly mode of contribution, overdue interest will be charged for delayed contribution. The amount of outstanding interest collected will remain as part of the customer's pension fund. More than one monthly / quarterly / half yearly contribution can be taken depending on the availability of funds. In all cases, the contribution can be credited along with the overdue amount, if any. This will be the internal process of the bank. The amount due will be recovered according to the money available in the account.

Deductions from customers account for maintenance fees and other related charges will be done on a periodic basis. For those customers who have availed government co-contribution, the account amount will be considered zero when the amount is reduced from maintenance fund, fees and overdue interest when subtracted from customer fund and government co-contribution account and hence Net corpus becomes zero. In this case the government's co-contribution will be given back to the government.