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Introduction to Pradhan Mantri Atal Pension Yojana (APY):

The agenda of NDA Government was to provide Social security, Financial stability to the citizen of India in the Poverty line stream. Our current PM is being very optimistic and moving forward in all possible ways and means to improve the Indian economy and the stand of living of the citizens in India. In such a stram the aspects such as PMJJBY, PMJDY plus the ATY which were a going to study are the factors introduced by the NDA Government.

AIM of the scheme:

The scheme endeavours to provide benefit of pension, which is given after retirement where one needs to have a say as a result. The targeted sector of individuals are the unorganized sector of workers.

Eligibility Criteria:

All the Indians are eligible whose age is between 18 – 40 years. Before availing the benefits of APY, the individuals need at least 20 years of contribution. This scheme provides any account holders of bank who is not an active member of any legislative social security. Individuals Schemed previously under ‘Swavalamban Scheme’ are directed automatically to APY.

Authorization authorities:

The Pension Fund Regulatory & Development Authority administers the scheme of APY or even the Government administers the policy.

Contribution process :

  • Swavlamban Policy Aggregator
  • All service providers – Banks

The advantages involved in Atal Pension Yojana:

  • Ageing individuals are given a security under this scheme, so as to create an awareness & secirity on traditional saving methods. And to basically help the ones under the lower class and lower middle class level.
  • A share of 50% is contributed which is of the users contribution. Or in other terms INR of 1,000 per year for tenure of 5 years is studied.
  • This applicable only to the users who join this scheme on or before 31st December 2015. The share, at any time is enjoyed by the ones who belong to the category where they do not pay income tax.
  • No Taxation deduction availed on the contribution amount t APY.
  • For the higher and lower amount of pension can change the monthly share of contribution.
  • The pension rages between Rs.1000/- to Rs.5000/-, which is based on the contribution based.

Process/Procedure involved to make use of the scheme:

The scheme APY plays a vital role in supporting, so as to pay pension to the poor or poor middle class. Lets gain knowledge on how to enrol with the scheme –

  • The account holder needs to fill in the form of authorization and has to be handed over to the particular bank of the account holder. The form requires filling of entire details such as Nominee and spouse information, account number along with the approval of auto debit of amount of contribution money.
  • Sufficient amount needs to be maintained every month, if proper funds are failed to maintain penalty is implied

Penalty ranges made as such, which is as follows-

  •  INR 10 for monthly share further than INR 1,001
  • INR 5 for monthly share targeting INR 501 & INR 1,000
  • INR 2 for monthly share ranging INR 101 & INR 500
  •  INR 1 for monthly share upto INR 100

Limitations on the account:

> If payments are not made for 6months, account is frozen

> No payment made till 12 months, account is deactivated

> Payment inactive for 24 months, account is closed

Formalities to exit from the policy:

In the general terms, an individual active in the scheme of APY cannot exodus until the individual attains the age of 60 years. Only special situations the account can be exited like in case of death of the account holder.

Opportunities or factors involved for non-account holders:

It is a mandatory factor for an individual to open an account by handing in Aadhar card along with KYP documentation. One need fill in the complete application of APY form of proposal.

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