Atal Pension Yojana: What happens if subscribers miss monthly payments

Contributions to Atal Pension Yojana are debit automatically from a subscriber's savings bank account

Atal Pension Yojana, which was introduced in the Union Budget for 2015-16, serves the unorganised sector of the society such as the domestic helps, gardeners, delivery boys and others. Employees of an organisation that does not provide pension benefits can also apply for the scheme.

 

Who can subscribe to Atal Pension Yojana?

 

Any Indian citizen can enroll in the Atal Pension Yojana (APY) scheme, provided they meet the following eligibility criteria:

 

The subscriber's age must be between 18 and 40 years.

 

The applicant must have a savings bank account or a post office savings bank account.

 

During enrollment, applicants are encouraged to provide their mobile number to receive periodic updates regarding their APY account and the scheme.

 

Contributions to Atal Pension Yojana are collected via auto-debit from the subscriber's savings bank account. The debit occurs on a specific date each month for monthly contributions, the first month of the quarter for quarterly contributions, or the first month of the half-year for half-yearly contributions.

 

If you default on your payments, your bank will collect some additional amounts as follows:

 

Re 1 for contributions up to Rs 100 per month.

 

Re 2 for contributions ranging from Rs 101 to Rs 500 per month.

 

Re 5 for contributions between Rs 501 to Rs 1000 per month.

 

Rs 10 for contributions beyond Rs 1001 per month.

 

Subscribers should ensure their bank accounts have sufficient funds when payment is due. Additionally, they can adjust their payment frequency – switching from monthly to quarterly or semi-annually, or vice versa – to better match their income flow.

 

The APY account remains active even if the subscriber delays contributions. In case of non-payment, subscribers can reactivate their account by paying the overdue interest, while account maintenance and other charges are automatically deducted from the account balance.

 

If a subscriber exits the scheme before 60 years of age, they will receive a refund of their contributions. That will be along with the actual income accrued on those contributions, after deducting account maintenance charges.