New Delhi: The Pension Fund Regulatory and Development Authority (PFRDA) has issued a new circular in which it has simplified the process of onboarding new subscribers to Atal Pension Yojana (APY) and to seed their Aadhaar. APY scheme is strictly meant for unorganised sector workers.
Taxpayers are not eligible for Atal Pension Yojana effective 2022.
How to seed Aadhaar into APY?
According to the master circular by pension fund regulator PFRDA, e Atal Pension Yojana will be launched by Protean e-Governance Tech Central Recordkeeping Agency. Under this facility, subscribers may submit Aaadhar for eKYC, in pdf or virtual ID format to enrol for APY.
This will allow relatives of potential subscribers, of individuals who are unable to find the proper channel to enrol for the scheme to self-sign up for Atal Pension Yojana. This circular moves banks from the equation to simplify enrolment in the scheme.
How to register for eAPY?
To register for Atal pension Yojana, individuals must access the PCRA portal.
They may alternatively download and sign up on the APY and NPS Lite app.
They will have to furnish a pdf copy of Aadhaar, and provide Aadhaar-based KYC, and virtual ID.
It is important for subscriber details to match bank records during enrolment in APY.
A minimum balance of Rs 1,000 must be maintained for APY deduction. The subscription cap is Rs 5,000.
APY subscription will be confirmed following verification of name and date of birth.
Any rejection will be notified to the individual along with the reason behind the same.
How much can I contribute towards Atal Pension Yojana?
Subscribers may contribute Rs 1,000-5000 per month towards APY. They must choose among the following slabs:
Who is eligible for APY?
Those interested in subscribing to APY must be aged between 18 and 40 years of age.
APY accounts cannot be opened by taxpayers.
NPS will close APY accounts opened on or after October 1, 2022 by taxpayers.
Subscribers are eligible for a pension of Rs 5,000 per month after the age of 60 years until their death.
Individuals must contribute for a minimum of 20 years to become eligible for the scheme.
Is premature withdrawal allowed?
APY premature withdrawal is only allowed under specific circumstances:
The subscriber dies
They suffer from a specified illness
They voluntarily exit
Once the application for exit is processed, the available units will be transferred to the subscriber’s account. Voluntary exit will lead to the deduction of government co-contribution to the corpus before the balance is processed into the subscriber’s account.