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Atal Pension Yojana
Atal Pension Yojana: A pension programme run by the Indian government is called Atal Pension Yojana. This programme, which replaced the Swavalamban Yojana, was created to give unorganised sector workers economic security in their later years. On May 9, 2015, in Kolkata, Prime Minister Narendra Modi introduced the Atal Pension Yojana. The program’s main goal is to motivate employees in unorganised sectors to set money aside for the future.
Atal Pension Yojana Overview
The Atal Pension Yojana (APY), a government programme that went into effect on June 1st 2015, was created primarily to provide old age security to unorganised workers who are not covered by any social security programmes. The overview of the Atal Pension Exam has been provided in the table below:
Atal Pension Yojana Overview
|Scheme Type||Old Age Pension Scheme/Social Security Scheme|
|Launch on||9th May 2015, at Kolkata|
|Purpose||To develop a Universal Social Security System for all Indians especially for underprivileged, poor and workers belonging to unorganized sectors.|
|It Replaced||Swavalamban Scheme|
|Regulating Body||Pension Fund Regulatory and Development Authority (PFRDA)|
|Department||Department of Financial Services, Government of India|
|Ministry||Ministry of Finance|
|Eligibility||Any Indian Citizen age between 18 – 40 Years|
|Benefits||A minimum pension between Rs 1000 to Rs 5000 on attaining 60 years of age is guaranteed.|
Benefits under Atal Pension Yojana
The Atal Pension Yojana (APY) targets the working poor’s lack of old age income security and the longevity risks faced by those employed in the unorganised sector. It encourages unorganised sector employees to proactively set aside money for their retirement. The programme was introduced by the government on June 1, 2015. The Swavalamban Yojana/NPS Lite plan is replaced by this one.
The Atal Pension Yojana offers the following advantages:
- The plan offers users a fixed pension of between Rs. 1000 and Rs. 5000 per year. If the member joins and makes contributions between the ages of 18 and 40, a pension will be given. The level of contribution fluctuates depending on the circumstances; it may be minimal if the subscriber joins the plan early and may be higher if he or she joins late.
- The spouse of the pension subscriber is entitled to receive the same benefits after the subscriber’s death.
- After the passing of a spouse, the indicative pension wealth will be given back to the nominees.
- Similar to the National Pension System (NPS), contributions to the Atal Pension Yojana (APY) are eligible for tax benefits.
Eligibility for Atal Pension Yojana
To qualify for the Atal Pension Yojana, workers must meet the following requirements:
- It is possible to participate in the Atal Pension Yojana (APY) even if you are not a part of a formal social security programme.
- Anyone with a bank account who is between the ages of 18 and 40 is eligible for the programme.
- Along with their Aadhaar number, they will need to show proof of ownership, or they will need to go through Aadhaar authentication.
- The subscriber should have both their savings account and their APY pension account contain their Aadhaar number.
- The Aadhar number must be provided in order for the government co-contribution to be credited and the contribution installments to be debited.