Frequently Asked Questions on Atal Pension Yojana

I. OPENING OF APY ACCOUNT

1. What is pension? Why do I need it?
A Pension provides a monthly income to the people during their unproductive years.
Need for Pension:
 Decreased income earning potential with age.
 The rise of nuclear Family
 Migration of earning members.
 Rise in cost of living.
 Increased longevity.
 Dignified life in the old age due to less financial dependence.

2. What is Atal Pension Yojana?

Atal Pension Yojana (APY), a pension scheme launched by Government of India is focused on the
unorganized sector workers. Under the APY, minimum guaranteed pension of Rs. 1,000/- or 2,000/-
or 3,000/- or 4,000 or 5,000/- per month will start after attaining the age of 60 years depending on
the contributions by the subscribers for their chosen pension amount.

3. Who can subscribe to APY?

Any Citizen of India can join APY scheme. The following are the eligibility criteria: -
(i) The age of the subscriber should be between 18 and 40 years.
(ii) He / She should have a savings bank account.
The prospective applicants may provide mobile number to the bank during their Enrolments under
APY to receive periodic updates on their APY account as well as on APY scheme. Aadhaar may also
be provided at the time of enrolment as APY scheme is notified for the same.

4. Whether an employee of Central/State Government or Public Sector Undertaking and/or a NPS

subscriber can subscribe to APY?
 YES, any Indian citizen within the age group of 18 - 40 years, can join APY Scheme
irrespective of his/her employment status with Govt./Public Sector, for availing benefits
guaranteed by Government of India under the scheme.
 Further, an existing NPS subscriber can also subscribe to APY, if he/she meets the basic
eligibility criteria, for availing benefits guaranteed by Government of India; under the
scheme.

5. What are the benefits of joining APY scheme?

The benefit of minimum pension under Atal Pension Yojana would be guaranteed by the
Government in the sense that if the actual realized returns on the pension contributions are less
than the assumed returns for minimum guaranteed pension, over the period of contribution, such
shortfall shall be funded by the Government. On the other hand, if the actual returns on the
pension contributions are higher than the assumed returns for minimum guaranteed pension, over
the period of contribution, such enhanced scheme benefits shall be passed on to the subscribers.

6. What is the procedure for opening APY Account?

Customer can approach the branch where he/she maintains SB account or through FedNet, our
internet banking platform.
7. Whether Aadhaar Number is compulsory for joining the scheme?
Atal Pension Yojana (APY) has now been included under the Section 7 of the Aadhaar Act. As per
the provisions of the Act, any individual who is eligible to receive such benefits under the APY will
have to furnish proof of possession of Aadhaar number or undergo enrolment under Aadhaar
authentication. Hence, it is desirable to provide Aadhaar Number for proper identification of the
subscriber.

8. Can I open APY Account without savings bank account?

No, the savings bank account/ post office savings bank account is mandatory for joining APY.

9. Is it required to furnish nomination while joining the scheme?

Yes. It is mandatory to provide nominee details in APY account.

10. Is there any provision of default nominee or blood relation?

If the subscriber is Unmarried they can nominate any other person as nominee and they have to
provide spouse details after marriage. If married, the spouse will be the default nominee. The
Aadhaar details of spouse and nominees may be provided.

11. How many APY accounts I can open?

A subscriber can open only one APY account. Multiple APY accounts are not permitted.

12. Can minor open APY account?

No. A minor cannot open an APY account.

13. If I have completed 40 years, can I join Atal Pension Yojana?

No, currently a person who is in age group of 18 years to 39 years 364 days can join Atal Pension
Yojana.

14. After opening of APY account, what will happen if a subscriber becomes non-citizen of the
country?
The scheme is open to the Indian citizens only. Hence, in that event the APY account will be closed
and the net actual interest earned on his contributions (after deducting the account maintenance
charges) will be refunded, whereas, the Government co-contribution, and the interest earned on
the Government co-contribution, shall not be returned to such subscribers.

15. Whether NRI is eligible to open APY Account?

Yes, NRI in the age group 18-40 years of age having a bank account is eligible to open APY.

II. ACCUMULATION PHASE UNDER APY

16. What amount one needs to contribute towards APY?
The contribution amount shall depend on the age of the subscriber at the time of opening of APY
account, frequency of contribution and the pension slab chosen. The age wise, frequency wise and
pension slab wise contribution table is provided as Annexure for reference.

17. What is the mode and frequency of contributions to the APY account?
The contributions can be made at monthly/quarterly/half yearly intervals through auto debit facility
from savings bank account of the subscriber.

18. What is the due date for contribution under APY?

APY contributions will be collected through auto-debit of their savings bank account on any date of
the particular month, in case of monthly contributions or any day of the first month of the quarter,
in case of quarterly contributions or any day of the first month of the half year, in case of half-yearly
contributions.
19. What will happen if the contribution gets delayed?
Subscriber will be charged overdue interest for the delayed period in case the APY contribution gets
delayed beyond the due date.

20. How the overdue interest is calculated in case of delayed contribution?

Banks are required to collect Rs. 1 per month for 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. More than one monthly / quarterly /half yearly contribution
can be recovered subject to availability of the funds.

21. What will happen if required or sufficient amount is not maintained in the savings bank
account for contribution on the due date?
In case of inadequate balance in the saving account of the subscriber till the last date of the month
/ last date of the first month in a quarter / last day of the first month in a half year, as the case may
be, it will be treated as a default and contribution will have to be paid in the subsequent month
along with overdue interest for delayed contributions. More than one monthly /quarterly /half
yearly contribution can be recovered subject to availability of the funds.

22. What will happen to APY account in case of continuous default?

Deduction would continue to be made in the subscriber’s APY account for account maintenance
charges and other related charges on a periodic basis till it becomes zero.

23. How the contributions are invested in APY?

The contributions under APY are invested as per the investment guidelines prescribed by PFRDA for
Central Government/State Government / NPS-Lite / Swavalamban /APY Scheme. The contributions
thus collected are invested and the funds are managed by namely SBI Pension Fund Pvt. Ltd, LIC
Pension Fund Ltd, UTI Retirement Solution Ltd.

III. SUBSCRIBER RELATED SERVICES UNDER APY

24. Whether various forms under APY are available online?
Various Forms under APY are available online at: [Link]

25. Will there be any option to increase or decrease the monthly contribution for higher or lower
pension amount?
a) Yes, a subscriber can opt to decrease or increase pension amount during the course of
accumulation phase.
b) For up gradation, the subscribers have to pay the differential amount of contribution at the
rate of 8% p.a. on monthly compounding basis whereas in the case of down gradation, the
excess amount of contribution collected from the subscriber would be refunded to the
subscribers along with the returns generated.
c) For up gradation or down gradation, other than error cases, the subscribers would be required
to pay a fee of Rs. 50.

26. How will I know the status of my contribution?

The periodical information to the subscribers regarding activation of PRAN, balance in the account,
contribution credits etc. will be intimated to APY subscribers by way of SMS alerts on the registered
mobile number or can be accessed through mobile/APY app launched by NSDL. The subscriber will
also be receiving physical Statement of Account once a financial year at their registered address.
27. Will I get physical statement of transactions?
YES. The physical statement of APY account will be provided to the subscribers annually at the
registered address.

28. If I move my residence/city, how can I make contributions to APY account?

The APY contributions will continue to collected through auto debit of the same Savings Account
uninterruptedly even in case of change of residence/location. As contribution collection is done
through bank account which is CBS enabled, subscriber can continue contributing through same
savings bank account, even if the residence is changed.

29. If I am an existing subscriber of APY, can I change my monthly auto debit facility to Quarterly
or Half Yearly as per my convenience?
Yes, the subscriber can change the mode (monthly/ quarterly/half yearly) of auto debit facility.

30. Will I get any tax benefits under APY Scheme?

Contribution towards APY scheme is eligible for Tax deduction under Section 80 CCD (IB)

IV. EXIT UNDER APY

31. Whether exit from APY Scheme is permitted before 60 years of age? If yes, what are the
benefits?
Yes, Voluntary exit under APY before 60 years of age is permitted.
The subscriber shall only be refunded the contributions made by him to APY along with the net
actual accrued income earned on his contributions (after deducting the account maintenance
charges).
However, in case of subscribers who joined the scheme before 31st March 2016 and received
Government Co-Contribution shall not receive the Government co-contribution and the accrued
income earned on the same, if opted for Voluntary exit before 60 years.

32. What one will get in case of death before 60 years?

 Option 1: In case of death of the subscriber before 60 years, option will be available to the
spouse of the subscriber to continue contribution in the APY account of the subscriber, which
can be maintained in the spouse’s name, for the remaining vesting period, till the original
subscriber would have attained the age of 60 years. The spouse of the subscriber shall be
entitled to receive the same pension amount as the subscriber until death of the spouse. Such
APY account and pension amount would be in addition to even if the spouse has his/her APY
account and pension amount in own name.
 Option 2: The entire accumulated corpus till date under APY will be returned to the spouse /
nominee.

33. What are the benefits under APY Scheme upon exit on attaining 60 years?
The subscriber shall receive the following three benefits on attaining the age of 60:

i. Guaranteed minimum pension amount: Each subscriber under APY shall receive a
Government of India guaranteed minimum pension of Rs. 1000 or Rs. 2000 or Rs. 3000 or
Rs. 4000 or Rs. 5000 per month, after the age of 60 years until death.
ii. Guaranteed minimum pension amount to the spouse: After the subscriber’s demise, the
spouse of the subscriber shall be entitled to receive the same pension amount as that of the
subscriber, until the death of the spouse.
 iii. Return of the pension wealth to the nominee of the subscriber: After the demise of both
the subscriber and the spouse, the nominee of the subscriber shall be entitled to receive the
pension wealth, as accumulated till age 60 years of the subscriber.

V. NP-S SWAVALAMBAN AND APY

34. Is migration from NPS Lite/ Swavalamban Scheme to APY possible?
The Swavalamban Subscribers between 18 to 40 years of age are eligible to migrate to APY.

35. What is the process of migration from NPS Lite/ Swavalamban Scheme to APY?
The eligible Swavalamban subscribers who wish to migrate to APY shall fill up the enrollment form
for migration to APY and submit the same along with the copy of PRAN card to the nearest APY
Service Provider for registration. Subsequent to the registration, the subscriber will be mapped to
the bank branch. The PRAN amount balance under Swavalamban Scheme will be shifted to APY
Scheme on T+1 basis.

36. What will happen to the contribution already accumulated under NPS Lite/ Swavalamban
Scheme after migration to APY?
The accumulated corpus of existing NPS Lite/Swavalamban subscriber between the age group of 18
and 40 years, who get migrated to APY will be kept under the same PRAN and remain as an
additional wealth of the subscriber till the time of exit. This additional amount may be given to the
subscriber as enhanced pension benefit or as lump-sum withdrawal, as the case may be. The
contribution of such subscribers under APY, after migration from the NPS Lite/Swavalamban
Scheme to APY, would be as per the amount mentioned in the Annex –I, depending on the pension
amount selected and the age of the subscriber.

37. Whether NPS Lite/ Swavalamban Subscriber can exit from the Scheme?
Yes, the subscribers under the NPS Lite/Swavalamban Scheme who do not wish to continue under
the Scheme may exit from the scheme as per the guidelines applicable and withdraw the entire
amount in lump sum or may prefer to continue till the age of 60 years to be eligible for benefits as
per the scheme.

38. For how many Years the Government will co-contribute?

The co-contribution of the Government of India is available for 5 years, i.e., from the Financial Year
2015-16 to 2019-20 for the subscribers, who join the scheme during the period from 1st June, 2015
to 31st March, 2016 and who are not covered by any Statutory Social Security Scheme and are not
income tax payers. The Government co- contribution would be payable to the eligible subscribers
by the Pension Fund regulatory and Development Authority (PFRDA), after receiving the
confirmation from Central Record Keeping Agency-NSDL to the effect that the subscriber has paid
all the installments for the concerned financial year. In such cases, Government co-contribution will
be credited in subscriber’s savings bank account/ post office savings bank account which would be
50% of the total APY contribution, subject to a maximum of Rs 1000/-,at the end of financial year.
However, some State Governments also make co-contribution to for APY subscribers in their
respective states, as per their notifications.