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Atal Pension Yojna(APY)  scheme along with Pradhan Mantri Jeevan Jyoti Bima Yojana (PMJJBY) and Pradhan Mantri Suraksha Bima Yojana (PMSBY) were launched by Prime Minister , Narendra Modi, in Kolkata on 9th May 2015.  There was simultaneous nation-wide launch of the schemes through functions organised in various States and Union Territories . Our article Pradhan Mantri Suraksha Bima Yojana,Pradhan Mantri Jeevan Jyoti Bima Yojana and Atal Pension Yojna gave an overview of these schemes. This article answers frequently asked questions on Atal Pension Yojna.

What is Pension? Why do I need it?

A Pension provides people with a monthly income when they are no longer earning. 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.
  • Assured monthly income ensures dignified life in old age.

What is Atal Pension Yojana?

Atal Pension Yojana (APY), is a pension scheme for citizens of India focussed on the organised sector workers. Under the Atal Pension Yojana, guaranteed minimum pension of Rs. 1,000, 2,000, 3,000, 4,000 and 5,000 per month will be given at the age of 60 years depending on the contributions by the subscribers.

Who can join Atal Pension Yojna?

Any Citizen of India can join APY scheme. The following are the eligibility criteria,

  • The age of the subscriber should be between 18 – 40 years.
  • He or She should have a savings bank account or open a savings bank account. It is necessary to have a bank account as contributions would be auto debited i.e would be automatically taken every month.
  • He/she should be  have  mobile number and its details are to be furnished to the bank during registration.
  • Government co-contribution is available for 5 years, i.e., from 2015-16 to 2019-20 for the subscribers who join the scheme during the period from 1st June, 2015 to 31st December, 2015 and who are not covered by any Statutory Social Security Schemes and are not income tax payers.

How many Atal Pension Yojana accounts I can open?

One can open only one APY account and it is unique.

Tax  and Atal Pension Yojna

There are no tax benefits like 80C on contribution to Atal Pension Yojna.

From Feb 23 2016 Contributions to the Atal Pension Yojana (APY) will now be eligible for the same tax benefits as the National Pension System (NPS). The tax benefits include the additional deduction of Rs 50,000 under section 80CCD(1) introduced in last year’s budget. Our article NPS Tax Benefits and sections 80CCD(1), 80CCD(2) and 80CCD(1B) explains the benefits in detail.

The pension received will be considered as Income from Salary and would be used in tax computation.

Who will not not receive Government co-contribution?

Those who are covered under statutory social security schemes are not eligible to receive Government co-contribution. For example, members of the Social Security Schemes under the following enactments would not be eligible to receive Government co-contribution:

  • Employees’ Provident Fund & Miscellaneous Provision Act, 1952.
  • The Coal Mines Provident Fund and Miscellaneous Provision Act, 1948.
  • Assam Tea Plantation Provident Fund and Miscellaneous Provision, 1955.
  • Seamens’ Provident Fund Act, 1966.
  • Jammu Kashmir Employees’ Provident Fund & Miscellaneous Provision Act, 1961.
  • Any other statutory social security scheme

So if you have an EPF account you can still open Atal Pension Yojna account but government will not contribute to your APY account. You would have to make full contribution for selected pension amount.

How much is Government’s co-contribution?

In APY, Government will co-contribute 50% of the total contribution or Rs. 1,000 per annum, whichever is lower, to the eligible APY account holders who join the scheme during the period 1st June, 2015 to 31st December, 2015. The Government co-contribution will be given for 5 years from FY 2015-16 to 2019-20.

How to open Atal Pension Yojna Account?

  • Approach the bank branch where individual’s savings bank account is held.
  • Fill up the APY registration form. The form in English can be downloaded from here.(pdf) and in Hindi from here. Forms are also available in other languages like Bangla,Gujarati,Hindi,Kannada,Marathi,Odia,Tamil and Telugu which can be downloaded from
  • Provide Mobile Number.
  • Provide Aadhaar Number.
  • Ensure keeping the required balance in the savings bank account for transfer of monthly contribution.

Is  Aadhaar Number compulsory for joining the scheme Atal Pension Yojana?

It is not mandatory to provide Aadhaar number for opening APY account. However, For enrolment, Aadhaar would be the primary KYC document for identification of beneficiaries, spouse and nominees to avoid pension rights and entitlement related disputes in the long-term.

Can I open Atal Pension Yojana  Account without savings bank account?

No. For joining APY, savings bank account is mandatory.

Is it required to furnish nomination while joining the Atal Pension Yojana scheme?

Yes. It is mandatory to provide nominee details in APY account. The spouse details are also mandatory wherever applicable. Their Aadhaar details are also to be provided. Aadhaar is becoming an important number to have. Our article explains  Aadhaar : What is Aadhaar, How to enrol,Check Aadhaar status,Download e Aadhaarin detail.

What is the mode of contribution to the account opened under Atal Pension Yojana?

All the contributions are to be remitted monthly through auto-debit facility from savings bank account of the subscriber i.e will be automatically deducted from the saving bank account of subscriber.

What is the due date for monthly contribution?

The due date for monthly contribution will be as per the initial date of deposit of contribution into APY.

What will happen if required or sufficient amount is not maintained in the savings bank account for contribution on the due date?

Non-maintenance of required balance in the savings bank account for contribution on the specified date will be considered as default. Banks are required to collect additional amount for delayed payments, such amount will vary from minimum Re 1 per month to Rs 10 per month as shown below:

  • Re. 1 per month for contribution upto Rs. 100 per month.
  • Re. 2 per month for contribution upto Rs. 101 to 500 per month.
  • Re 5 per month for contribution between Rs 501 to 1000 per month.
  • Rs 10 per month for contribution beyond Rs 1001 per month.

Discontinuation of payments of contribution amount shall lead to following:

  • After 6 months account will be frozen.
  • After 12 months account will be deactivated.
  • After 24 months account will be closed.

Subscriber should ensure that the Bank account to be funded enough for auto debit of contribution amount. The fixed amount of interest/penalty will remain as part of the pension corpus of the subscriber.

How much can one contribute in Atal Pension Yojana ?

Amount to be contributed monthly under the Atal Pension Yojna scheme depends on the age of the person who joins the scheme and how much pension 1000,2000,3000,4000,5000 Rs he wants. Please remember that once the person passes away the spouse(wife/husband) will get the pension and after death of spouse the nominees will get a lump sump amount.

For getting guaranteed pension of Rs 1000 and lump sump of Rs 1.71 lakh to nominees amount one has to contribute at some sample ages is given below. Detailed table is provided here.

Age of Joining Years of Contribution Monthly contribution
18 42 42
20 40 50
25 35 76
30 30 116
35 25 181
40 20 291

Is there an option to increase or decrease the monthly contribution for higher or lower pension amount?

The subscribers can opt to decrease or increase pension amount during the course of accumulation phase, as per the available monthly pension amounts. However, the switching option shall be provided once in year during the month of April.

What is the withdrawal procedure from Atal Pension Yojana?

  •  On attaining the age of 60 years: The exit from APY is permitted at the age with 100% annuitisation of pension wealth.On exit, pension would be available to the subscriber.
  • In case of death of the Subscriber due to any cause: In case of death of subscriber pension would be available to the spouse and on the death of both of them (subscriber and spouse), the pension corpus would be returned to his nominee.
  • Exit Before the age of 60 Years: The Exit before age 60 would be permitted only in exceptional circumstances, i.e., in the event of the death of beneficiary or terminal disease.

How will I know the status of my contribution?

The status of contributions will be intimated to the registered mobile number of the subscriber by way of periodical SMS alerts. The Subscriber will also be receiving physical Statement of Account.

Will I get any statement of transactions?

  • Yes. Periodic statement of APY account will be provided to the subscribers.
  • If I move my residence/city, how can I make contributions to APY account?
  • The contributions may be remitted through auto debit uninterruptedly even in case of dislocation.

What will happen to existing subscribers in Swavalamban Yojana?

The existing Swavalamban scheme may be automatically migrated to Atal Pension Yojana.

For age of subscriber between 18-40 yrs: All the registered subscribers under Swavalamban Yojana aged between 18-40 yrs will be automatically migrated to APY with an option to opt out. However, the benefit of five years of Government Co-contribution under APY would be available only to the extent availed by the Swavalamban subscriber already. This would imply that if, as a Swavalamban beneficiary, he has received the benefit of government Co-Contribution of 1 year, then the Government co-contribution under APY would be available only for 4 years and so on. Existing Swavalamban beneficiaries opting out from the proposed APY will be given Government co-contribution till 2016-17, if eligible, and the NPS Swavalamban continued till such people attain the age of exit under that scheme.

Other subscribers above 40 years who do not wish to continue may opt out of the scheme with lump sum withdrawal.Subscribers above 40 years may also opt to continue till the age of 60 years and eligible for annuities.

How are the contributions of Atal Pension Yojna invested? 

The contributions under APY are invested as per the investment guidelines prescribed by Ministry of Finance, Government of India. The APY scheme is administered by PFRDA/GOVERNMENT.

Lumpsum Corpus that Nominee will receive

On death of person who was member of Atal Pension Yojna and his spouse(wife/husband), the nominees will receive a lump-sump amount shown in table below. The amount received will be based on how much monthly pension had the person who joined Atal Pension Yojna chose. For example if person chose 2000 Rs of Monthly pension amount, the lump-sump amount received will be Rs 3.4 lakh. If person chose Rs 5000 as monthly pension amount the nominee will receive Rs 8.5 lakh.

Monthly Pension Amount (Rs) Corpus (Rs)
1000 1.7 lakh or 1,70,000
2000 3.4 lakh or 3,40,000
3000 5.1 lakh or 5,10,000
4000 6.8 lakh or 6,80,000
5000 8.5 lakh or 8,50,000

Agewise Atal Pension Yojna  Contribution Chart

The amount that one has to contribute for monthly pension of Rs 1000, Rs 2000, 3000, 4000 & 5000 at  ages between 18-40 is given below.

Age ofEntry Years of
Monthly pension of Rs. 1000. Monthly
pension of Rs.
Monthly pension
of Rs. 3000.
Monthly pension
of Rs. 4000.
pension of Rs.
18 42 42 84 126 168 210
19 41 46 92 138 183 228
20 40 50 100 150 198 248
21 39 54 108 162 215 269
22 38 59 117 177 234 292
23 37 64 127 192 254 318
24 36 70 139 208 277 346
25 35 76 151 226 301 376
26 34 82 164 246 327 409
27 33 90 178 268 356 446
28 32 97 194 292 388 485
29 31 106 212 318 423 529
30 30 116 231 347 462 577
31 29 126 252 379 504 630
32 28 138 276 414 551 689
33 27 151 302 453 602 752
34 26 165 330 495 659 824
35 25 181 362 543 722 902
36 24 198 396 594 792 990
37 23 218 436 654 870 1,087
38 22 240 480 720 957 1,196
39 21 264 528 792 1,054 1,318
40 20 291 582 873 1,164 1,454

The official website of the scheme is Toll-Free – 1800-180-1111 / 1800-110-001  and  StateWise Toll free number  are listed in this document Statewise Toll-Free (pdf)

Related articles:

I have received SMS from ICICI Bank about Pradhan Mantri Jeevan Surakhsa Scheme but  not about any other scheme. Banks are under pressure to make these schemes a success so you should also be getting calls from your bank. Should one join Atal Pension Yojna? Why or Why not? Are you planning to join Atal Pension Yojna? Will it help the people for whom it is targeted ?


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