The National Democratic Alliance government has placed a high priority on financial inclusion and the creation of a universal social security system. The implementation of the Pradhan Mantri program was the first step toward achieving social security.
Yojana (PMJDY) (PMJDY).
The government unveiled three new programmes on May 9, 2015, two insurance programmes (Pradhan Mantri Jeevan Jyoti Bima Yojana and Pradhan Mantri Suraksha Bima Yojana), and one pension programme, after declaring Phase It was a huge success with 1.8 crore accounts being opened nationwide (Atal Pension Yojana). Phase II of the PMJDY is what it is known as since it was crucial to integrate them into mainstream banking before offering them any advantages.
Atal Pension Scheme
“Our young population will no longer receive pensions when it ages. The Pradhan Mantri Jan Dhan Yojana’s success has inspired me to work toward developing a universal social security system for all Indians, which will ensure that no Indian citizen has to worry about illness, accidents, or penury in old age, said then-Finance Minister Jaitley in his 2015–16 Union Budget speech. In line with this goal, the Atal Pension Yojana, a national pension programme, went into force in May 2015.
The programme aims to provide pension benefits to those employed in the unorganized sector so they can take advantage of social security with a little monthly contribution. People who are employed in the private sector or in professions that do not provide them with the benefit of a pension are eligible to apply for this programme.
The Pension Funds Regulatory and Development Authority of India (PFRDA) is responsible for managing the funds collected under the plan in accordance with the Government of India’s recommended investment strategy. There won’t be any investment options or pension funds available to individual applicants.
Atal Pension Yojana advantages (APY)
- The Atal Pension Scheme will provide security for Indians who are getting older while also encouraging a culture of saving and investing among the lower and lower-middle classes. The scheme’s potential for helping the less fortunate segments of society is one of its greatest advantages.
- Tax Benefits: Additionally, payments to the Atal Pension Yojana (APY) are now qualified for the same tax advantages as those of the National Pension System, according to a circular issued by the Income Tax department (NPS). In addition to the tax benefits provided by section 80C, there is an extra deduction of up to Rs 50,000 allowed under section 80CCD(1) of the Income Tax Act.
- Other Benefits: A guaranteed monthly pension of between Rs. 1000 and Rs. 5000 is provided. In the event of the subscriber’s passing, the pension is transferred to the surviving spouse. If both of them pass away, the nominees will receive the whole corpus.
- To begin with, you must go to the bank where your APY account is kept.
- The closing form must be completed and submitted.
- You must wait for the bank to continue the process after submitting the closure form.
- Along with the interest you have accrued up to this point, the funds in the APY account will be transferred to the bank account that you specified, and the bank will send you a confirmation that the account has been closed.
What People Qualify for the Atal Pension Yojana?
All Indians between the ages of 18 and 40 are eligible for the Atal Pension Yojana (APY). As a result, a person can make contributions for at least 20 years before starting to profit from the programme. The programme is available to any person with a bank account who is not enrolled in a statutory social security programme. The government’s “Swavalamban Yojana NPS Lite” will automatically convert all current participants to the Atal Pension Yojana. It will now take the place of the Swavalamban plan, which did not find much success nationwide.
How can I sign up for the Atal Pension Scheme?
An account holder must fill out an authorization form and send it to their bank in order to enrol in the Atal Pension Yojana. Complete information will be required on the form, including the account number, information about the spouse and nominee, and approval for automatic deduction of the contribution amount. Account holders who sign up for the programme must make sure that a sufficient balance is kept in the account each month; otherwise, they will be subject to a monthly fee of –
For monthly contributions up to 100 rupees, two rupees, between 101 and 500 rupees, five rupees, between 501 and 1,000 rupees, and ten rupees for contributions above 1,001 rupees.
If no contribution is made to the programme
- The holder’s account will be closed after six months of deactivation, six months of freezing, twelve months of deactivation, and twenty-four months of deactivation.
- For individuals without a bank account, one must first open one by submitting the KYC paperwork and the Aadhar card. Additionally, he or she must submit the APY proposal form.
Exiting the scheme: If you choose to, you may do so. You will receive a closure form, and you must go to the bank where your APY account is located.
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