How To Open Atal Pension Yojana (APY) Account Online

5paisa Research Team Date: 09 Feb, 2024 05:41 PM IST

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Launched by the Government of India, Atal Pension Yojana focuses on offering a guaranteed pension to those who may not have access to formal pension plans. However, many working professionals in unorganised sector are unable to take advantage of this initiative as they don’t know how to open Atal Pension Yojana account online. As a result, they are still struggling to make their old age financially sound. Opening an APY account online is a streamlined and hassle-free process that requires only a few minutes. To facilitate accessibility, the government has introduced an online enrolment process, making it convenient for eligible individuals to initiate and manage their pension accounts through digital platforms.

In addition to knowing how to open account in Atal Pension Yojana, one significant aspect you must note is that, as of October 1, 2022, individuals who are taxpayers or have a history of paying income tax are no longer eligible to enrol in APY. 

Before delving deeper into the steps involved, you must know what this scheme is all about. 

What Is Atal Pension Yojana

The Government of India introduced the Atal Pension Yojana, a government-backed pension scheme, in response to the growing need for financial security among working professionals without access to official pension schemes. Arun Jaitley, the finance minister at the time, unveiled this initiative in 2015, as part of the government's broader effort to improve social security and financial inclusion for all residents.

Important Things About Atal Pension Yojana

• Target Audience
The program mainly targets unorganised sector workers, such as labourers, housekeepers, gardeners, and other employees who do not have a defined pension plan or a reliable source of income.

• Age Criteria
APY is open to individuals aged between 18 and 40 years. The earlier an individual joins the scheme, the lower the contribution amount, making it an attractive option for early enrolment.

• Pension Amounts
The pension amounts under APY vary, providing different levels of financial support based on the contribution made by the subscriber. The pension options start from Rs. 1000 and may go up to Rs. 5000 per month.

• Contributions and Benefits
Individuals enroling in APY are required to contribute a fixed amount regularly until they reach retirement age. The pension amount is predetermined based on the contribution amount and the age at which the individual joins the scheme.

• Auto-Debit Mechanism
Contributions are automatically deducted from the subscriber's bank account, streamlining the process and ensuring regular payments.

• Nomination Facility
Subscribers may choose a beneficiary to receive the accrued pension earnings in the unfortunate circumstance of their demise.

• Exit and Withdrawal
Subscribers can opt out of the plan before the age of 60 only in extreme circumstances, such as terminal illness or demise. In such instances, the accumulated pension funds would be transferred to the nominee.

Steps for Opening Atal Pension Yojana Account Online

If you wish to take advantage of this excellent financial initiative but restricting yourself because you don’t know how to open Atal Pension Yojana account, here are the steps that will guide you in doing so. 

An APY account may be opened in two ways: at a bank branch/post office, or via the National Securities Depository Limited (NSDL) website.

Method 1: Through a Bank Branch or Post Office

• Head to a bank branch or post office that is enlisted as an APY service provider. 
• Obtain and fill out the Atal Pension Yojana registration form. Provide accurate personal details, including your name, date of birth, contact information, and bank account details.
• Select the desired pension amount based on your financial requirements. Additionally, decide on the frequency of your contributions (monthly, quarterly, or half-yearly).
• Attach the necessary KYC documents including identity proof, address proof, and passport size photograph. 
• Specify the details of the nominee who will receive the accumulated pension wealth in the event of the subscriber's demise. 
• Sign the auto-debit authorisation form, allowing the bank or post office to deduct the specified contribution amount from your account at regular intervals.
• Once the registration process is complete, the bank or post office will provide you with an acknowledgment slip containing the details of your APY account.

Method 2: Through the National Securities Depository Limited (NSDL) Website

• Browse the NSDL website. 
• Navigate to the APY section. 
• Begin the online registration process by providing the required details, such as your Aadhaar number, bank account information, and contact details.
• Select the preferred pension amount and frequency of contributions based on your financial preferences and needs.
• Complete the online submission of KYC details by uploading scanned copies of necessary documents, including proof of identity and address.
• Set up the auto-debit facility by linking your bank account to ensure seamless monthly contributions. 
• Carefully review all the entered information before confirming your APY registration. Verify that the details are accurate and all supporting documents have been attached. 
• Upon successful registration, you will receive a confirmation message and an acknowledgment of your APY account will be generated. Save it for future purposes. 

Conclusion

Ultimately, APY is a significant project launched by the Indian government.  With an emphasis on financial inclusion, the online enrolment procedure has been made more accessible. Understanding the scheme's characteristics, target demographic, and online account establishing process enables users to efficiently ensure their financial future. 

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Frequently Asked Questions

To open an APY account, an individual needs to have a savings account with a bank or a post office.

No, you cannot open an APY account without a savings account. The APY payments and withdrawals are connected to a savings account, and the pension amount is deducted from this account regularly via an auto-debit system. Thus, registering in the APY requires you to have an active savings account.

Yes, subscribers must provide a nomination when they join the APY scheme. A nomination is a crucial aspect of the plan as it designates a beneficiary who will receive the accumulated pension wealth in the unfortunate event of the subscriber's demise.