Atal Pension Yojana (APY)

What is Atal Pension Yojana (APY)?

Atal Pension Yojana (APY) is a guaranteed pension scheme and is administered by the Pension Fund Regulatory and Development Authority (PFRDA). Banks are required to get registered with PFRDA to provide APY related services. It has been named after the ex-prime minister of India, Atal Bihari Vajpayee. The primary idea of launching this scheme is to provide a definite pension to all Indians particularly those employed in unorganized and rural sectors. The more one contributes in this scheme, the more pension he can get during old age.

Key Features

  • Guaranteed monthly pension for subscribers, ranging from Rs. 1000/- to Rs. 5000/- per month.
  • Government of India will also co-contribute 50% of the subscriber’s contribution or Rs. 1000/- per annum, whichever is lower.
  • Government of India's co-contribution to each eligible subscriber for a period of 5 years who joins the scheme in the period June 1, 2015 to December 31, 2015.
  • The contribution amount is minimal and is not worrisome for the subscriber.
  • Swavalamban Yojana will get automatically converted to Atal Pension Yojana (APY).
  • Submission of Aadhar Card is mandatory at the time starting of pension.
  • This pension is taxable.

The subscribers who will not get governments contribution are:

  • An income tax payer
  • State or government employee
  • Person working in a private company and have EPF or EPS account.

Above employees can join the scheme but will not be eligible for the government contribution.


  • Any Indian national within the age group of 18 to 40 years.
  • He should have a savings bank account a savings bank account. The subscriber should be in possession of mobile number whose details are to be provided to the bank at the time of registration. The subscriber should ensure an uninterrupted contribution until attainment of the retirement age i.e. 60 years of his age as any break in the payment of contribution amount can result into closure of the account.


The premiums to the pension account are based on age of the person & how much pension he is opting for. The premium will be paid through his bank account under auto-debit facility.

A person has following 3 modes to pay the premium:

  • Monthly
  • Quarterly
  • Half Yearly

Switching between the modes is possible but only once a year.

Indicative APY Monthly Contribution Chart (Age wise)

Age of EntryYears of ContributionMonthly pension of Rs. 1000/-Monthly pension of Rs. 2000/-Monthly pension of Rs. 3000/-Monthly pension of Rs. 4000/-Monthly pension of Rs. 5000/-

Status of contribution

It will be given periodically to the registered mobile number of the subscriber through SMS. He will also get physical Periodic Account Statement.


  • If a subscriber joins the scheme and pays the required premium according to the chart, he will start getting pension after attaining 60 years of age till he is alive.
  • If subscriber dies after attaining the age of 60 years, his/her spouse is eligible to get the pension same as that subscriber was getting. After both die, the nominee will get the corpus amount of Rs 8.5 lakh.


Nomination is very important in this scheme. However, the spouse is considered the default nominee.

Tax benefits

One can claim the premium paid in this scheme for tax rebate under section 80CCD of Income Tax Act.

Upcoming Bank Holidays

2017 January 26 is a bank holiday in Andaman And Nicobar Island due to Republic Day.
2017 February 01 is a bank holiday in Andaman And Nicobar Island due to Saraswati Puja (Shree Panchami)/Basant Panchami.
2017 February 10 is a bank holiday in Chandigarh due to Guru Ravidas's Birthday.
2017 February 15 is a bank holiday in Manipur due to Lui Ngai-Niw.

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