Atal Pension Yojana (APY) is one of the Social Security Schemes in the insurance & pension sector launched by the Govt. of India for all Indians to provide a defined pension between Rs. 1,000/- to Rs. 5,000/- depending on the contribution & its period.
Atal Pension Yojana Benefits
An APY Account with The Mahendragarh Central Coop Bank Ltd. offers the following benefits:
- Tax Benefit: Tax benefit under Sec. 80 CCD for the contributions made.
- Guaranteed Pension:Guaranteed minimum pension of Rs.1,000/- to Rs.5,000/- per month. If the actual returns on the pension contributions are higher then the pension will also be higher.
Terms & Conditions of APY
- APY is open to all savings bank account holders.
- The scheme is administered by the PFRDA through NPS architecture. The minimum entry age for joining APY is 18 years & the maximum age is less than 40 years. Therefore, minimum period of contribution by any subscriber under APY would be 20 years or more.
- The demographic data of the customer will be taken from core banking.
- The subscriber is advised to share mobile number details with the bank during enrolment to receive registration & contribution confirmation from the NSDL.
- The contributions can be made at monthly/ quarterly/ half yearly intervals from savings bank account of the subscriber. First contribution will be debited at the time of enrolment & the subsequent debit would be as per the frequency chosen by the subscriber. The quarterly & the half yearly contributions will happen in the first month of the financial year quarter/ half year.
- The contribution will be deducted from the subscriber’s savings bank account through auto debit facility.
- The application is liable to be rejected if the balance for successful debit of contribution amount is not available at the time of enrolment.
- The contribution will be deducted as per date of birth of the subscriber updated in the core banking system.
- The subscribers would receive the guaranteed minimum pension of Rs. 1,000/- to Rs.5,000/- per month will be given at the age of 60 years depending on the contributions by the subscriber. The benefit of minimum pension would be guaranteed by the Government of India.
- The subscribers are advised to maintain required balance in their saving bank account to avoid any late payment penalty.
- The subscriber can opt to decrease or increase the pension amount during the course of accumulation phase, as per the available monthly pension amounts. However, the switching option shall be provided once in a year during the month of April only.
- The subscriber will receive periodic physical statement of Account issued by NSDL on the address given in the core banking which has been submitted to NSDL.
- The subscriber will be provided with an acknowledgement slip once registered for APY, which would capture the registration details along with the guaranteed pension amount, periodicity of contribution, contribution amount, PRAN etc.
- The subscriber should not be holding any other APY account while applying from The Mahendragarh Central Coop Bank Ltd.
- The subscriber should keep the required balance in their saving bank account to avoid any overdue interest for delayed contributions. Banks are required to collect Re.1/- per month for the contribution of every Rs.100/- or part thereof, for each delayed monthly contributions. The overdue interest amount collected will remain as part of the pension corpus of the subscriber. In all cases, the contribution is to be recovered along with the overdue charges, if any. The due amount will be recovered as and when funds are available in the account. This will be bank’s internal process.
- Exit procedure
- On attaining the age of 60 years:
Upon completion of 60 years, the subscriber will have to submit the request to the associated bank for drawing the guaranteed minimum monthly pension or higher monthly pension, if investment returns are higher the guaranteed returns embedded in APY. The same amount of monthly pension is payable to spouse upon death of the subscriber. Nominee will be eligible for return of pension wealth accumulated till age 60 of the subscriber upon death of both the subscriber & the spouse.
- In case of death of the subscriber due to any cause after the age of 60 years:
In case of death of subscriber, pension would be available to the spouse & the on the death of both of them (the subscriber & the spouse), the pension wealth accumulated till age 60 of the subscriber would be returned to the nominee.
- Exit Before the age of 60 Years:
Exit before 60 years of age is generally not permitted, it may be permitted by PFRDA only in exceptional circumstances, i.e., in the event of the death of beneficiary or terminal disease etc., in line with the provisions for pre mature exit under NPS.
- Death of subscriber before 60 years
The entire accumulated corpus under APY will be returned to the spouse/ nominee. However, pension shall not be payable to the spouse/ nominee.
- On attaining the age of 60 years: