APY: A scheme offering a monthly pension of ₹5,000 - If you want to register, check out this important update!

If you're considering registering for the Atal Pension Yojana, you should definitely check out this important update. The government recently introduced a new subscriber registration form. Learn more about this scheme here.

If you're considering registering for the Atal Pension Yojana, which offers a monthly pension of ₹5,000, here's a major update for you. The government has made a significant change to this scheme. In fact, the government has introduced a new subscriber registration form for the Atal Pension Yojana, effective October 1.

Now, only the new form will be accepted for registration. This information has been provided in an official notification issued by the Postal Department. These changes have been made under the guidelines of the Pension Fund Regulatory and Development Authority (PFRDA) to make the system more transparent and prevent fraudulent registrations.

These are the three new changes:

1. Mandatory FATCA/CRS Declaration

The new form now requires a mandatory FATCA/CRS declaration to ensure that the applicant is not a foreign national or tax resident.

2. Only Indian residents will be able to open an account

Now, only Indian citizens will be able to register for the Atal Pension Yojana through post offices, as these accounts are linked to postal savings accounts.

3. The form is now in accordance with Protean (NSDL)

The new form has been developed to meet the requirements of Protean eGov (NSDL) to make the registration process easy, transparent, and digitally integrated.

What is the Atal Pension Yojana?

The Atal Pension Yojana has been launched for Indian citizens who are not subject to income tax. Under this scheme, contributions are required until the age of 60, and pension begins after 60. Under APY, pensions range from ₹1,000 to ₹5,000. The amount of pension you receive depends on your total contribution. If you are between 18 and 40 years of age and are not a taxpayer, you can also register under this scheme.

How much contribution do you need to make each month?

If you are eligible for this scheme, you may be wondering: how much money will you need to invest each month? This depends on two factors: first, at what age do you join, and second, how much pension do you expect after the age of 60. Suppose you are 18 years old and you want a monthly pension of ₹5,000 after the age of 60. You may need to invest anywhere from ₹210 to approximately ₹1,454 per month. Your premium depends on your age. The earlier you start contributing, the lower the premium.

What if something happens to the investor?

If the investor dies after the age of 60, their spouse will receive the same pension for life. If both the investor and their spouse die, the entire corpus deposited in the plan is returned to their nominee in one lump sum.

Frequently Asked Questions (FAQs)

1. Can I change my pension amount mid-term?

Answer: Yes, you can change your pension plan (up or down) once a year, in the month of April.

2. What if I am unable to deposit funds for a few months?
Answer: If you fail to pay premiums, your account may be frozen. You can reactivate it by depositing the outstanding amount along with a penalty. Failure to deposit funds for a long time may result in the account being closed.

3. Are only the poor or those in the unorganized sector eligible for this scheme?

Answer: No, this is a big misconception. Any Indian citizen between the ages of 18 and 40, whether in a private job, a businessman, or a farmer, can invest in this scheme, provided they do not fall under the income tax slab.

4. Can withdrawals be made from this scheme before the age of 60?

Answer: No under normal circumstances. However, premature withdrawals are permitted in exceptional circumstances such as the investor's death or a serious illness.