Atal Pension Yojana: Want to withdraw money from the Atal Pension Yojana before maturity? Know these rules first..

The Atal Pension Yojana (APY) is a government scheme that provides a monthly pension to individuals during their old age. This scheme was launched specifically for the poor, low-income earners, and those working in the unorganized sector. Individuals aged between 18 and 40 years can join the scheme, subject to certain conditions.

Recently, an awareness campaign regarding APY was conducted in the Thane district of Maharashtra. During this event, the Bank of Maharashtra, the State Level Bankers' Committee, and the PFRDA provided information to the public about joining the scheme. Officials explained that APY can help alleviate concerns regarding financial security in old age. Here is how you can open an account and details about the pension amount received after the age of 60.

How to open an APY account?

You can open an Atal Pension Yojana account through your bank or post office. If you already have an Aadhaar-linked savings account, you can join APY through that same account.

If you do not have an account with a bank or post office, you must first open a new account and complete the Aadhaar KYC process. Once done, you can apply for APY.

How much pension will be received after age 60?

Under APY, you must decide in advance the pension amount you wish to receive in your old age. The scheme offers options for a guaranteed minimum monthly pension of ₹1,000, ₹2,000, ₹3,000, ₹4,000, or ₹5,000. The pension amount you receive depends on your age and the contributions made to the scheme. Essentially, the earlier you join the scheme, the easier it is to select a pension option based on your contributions.

How to apply for APY online?

If your bank offers an APY registration facility via net banking, you can apply from the comfort of your home. To do this, look for the APY option on the bank's website or net banking portal and fill in the required details. You can then activate the auto-debit facility, ensuring the specified amount is automatically deducted from your bank account at regular intervals.

How can one apply offline?

To apply offline, you need to visit your bank or post office. Obtain the APY form there and fill in the requested information. You must also submit a copy of your Aadhaar card and the necessary KYC documents. After submitting the form, the bank will provide a receipt. Once the application is approved, you may receive a notification on your registered mobile number.

How is the pension received after the age of 60?

The APY term generally lasts until the age of 60. Upon reaching the age of 60, pension payments commence based on the accumulated corpus, in accordance with the scheme's rules. You will need to submit a request to your bank or post office to start receiving the pension. Once the process is complete, the pension will be paid out monthly. Following the subscriber's death, the spouse may receive pension benefits as per the scheme's regulations.

Can the money be withdrawn before the age of 60?

Yes, though premature withdrawal is not generally permitted. It is allowed only under specific circumstances, such as the subscriber's death or the need for funds to treat a critical illness. If the APY account is closed before the age of 60, the subscriber typically receives the accumulated contributions along with the accrued interest; however, the government's co-contribution and the interest earned on it are not paid out. Therefore, it is important to understand the rules before joining APY, and continuing the scheme until the age of 60 is generally beneficial.

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