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.

How to Apply for Atal Pension Yojana (APY)?

If you want for apply for Atal Pension Yojana (APY), you need to follow below mentioned step by step process:

  1. All the nationalized banks and post offices offer APY. You need to visit any bank or post office to apply for the scheme. Atal Pension Yojana forms are also available online so you can download it from the official websites of the banks. However, there is no provision to apply for APY online at present
  2. Obtain and fill up the APY registration form
  3. Mention the name of nominee
  4. To mention a mobile number is mandatory in the application form in order to get SMS alerts and information about the APY account
  5. Attach Proof of identity, proof of address, photo, document having date of birth, a savings bank account number with branch name and bank name, etc.
  6. Submit the form with all the documents with the bank
  7. After this, the bank/ post office will verify the form and the documents and if all the formalities are complete, the bank/post office will process your application and open your APY Account
  8. You will be sent a confirmation message when the application is approved and account is opened
  9. The contribution to the pension scheme will be automatically debited from the user's bank account every month till he attains the age of 60 years. Hence you should keep sufficient balance in your account before each debit is due

Freezing & Closing of Atal Pension Yojana (APY) Account

  • Account will be frozen: If the account does not receive payments for 6 months in continuation
  • Account will be deactivated: If the account does not receive any premium for 12 months
  • Account will be closed: If the account does not receive any premium for 24 months and the remaining amount will be paid to the subscriber

Penalty on Default on Payment

If you make a default on your payments, a penalty will be levied. The penalty rate is as follows:

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

Interest Rate

Fixed Deposit Interest Rate
PPF Interest Rate
Recurring Interest Rate
Saving Interest Rate

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