Atal Pension Yojana: Centre Extends Atal Pension Yojana For Five More Years Check Eligibility And Benefits

Atal Pension Yojana: The Central Government has taken yet another significant step to ensure income security in old age for workers in the unorganized sector. The Union Cabinet has recently decided to extend the Atal Pension Yojana (APY) for another five years. This means that the benefits of this popular social security scheme will now be available until the financial year 2030-31. This decision comes as a major relief for millions of low-income individuals across the country.

Understanding Atal Pension Yojana and Its Benefits

The Atal Pension Yojana is essentially a government-subsidized social security scheme designed to provide a guaranteed monthly income to unorganized sector workers after retirement. Under this scheme, beneficiaries are entitled to a guaranteed minimum monthly pension ranging from ₹1,000 to ₹5,000 after attaining the age of 60 years. The exact amount of pension depends on the contribution made by the subscriber and the age at which they joined the scheme.

One of the most attractive features of this scheme is the family security it offers. Not only does the subscriber receive a pension for a lifetime, but upon their death, the spouse is also entitled to receive the same pension amount for the rest of their life. Furthermore, after the demise of both the subscriber and the spouse, the accumulated pension corpus is returned to the nominee.

How is it Different from the National Pension System (NPS)?

While both are pension products, the APY differs significantly from the National Pension System (NPS). The NPS is a broader scheme suitable for salaried professionals in both government and private sectors. In contrast, the APY has been specifically crafted to cater to the needs of the unorganized workforce who do not have access to structured social security benefits.

Eligibility Criteria and Key Rules

Any Indian citizen aged between 18 and 40 years is eligible to apply for the Atal Pension Yojana. A valid bank account or post office savings account linked with a mobile number and Aadhaar number is mandatory for enrollment. To be eligible for the pension benefits, individuals must contribute to the scheme for a minimum period of 20 years.

Who Cannot Apply?
It is important to note a crucial rule change effective from October 1, 2022. Individuals who are income tax payers or file income tax returns are no longer eligible to apply for the Atal Pension Yojana.

Application Process

Eligible beneficiaries can enroll in the scheme through both offline and online modes:

• Offline Method: Visit any participating bank branch or post office to collect the APY registration form. Fill in all necessary details, including your bank account information, personal details like name, date of birth, mobile number, and Aadhaar number. Married individuals must provide details of their spouse. A nominee must also be appointed. Submit the signed form to the bank or post office.
• Online Method: For a hassle-free experience, eligible individuals can apply online through the NPS Trust website at https://npstrust.org.in/open-apy-account.

With the extension of this scheme, it is expected that more citizens will take advantage of this opportunity to secure their financial future.

Disclaimer: This article is for informational purposes only and does not constitute financial advice. Please read the scheme-related documents carefully or consult a financial advisor before investing.