Atal Pension Yojana (APY) — Complete Guide
What is Atal Pension Yojana?
Atal Pension Yojana (APY) is a government-backed pension scheme for workers in the unorganized sector — daily wage workers, domestic help, small traders, gig workers, and anyone without a formal pension plan.
You contribute a fixed monthly amount during your working years, and after age 60, you receive a guaranteed pension for life.
Key Features
- Guaranteed monthly pension: ₹1,000 / ₹2,000 / ₹3,000 / ₹4,000 / ₹5,000
- Pension starts at age 60 and continues for life
- On your death, your spouse receives the same pension
- On both deaths, your nominee gets the corpus back
- Government co-contribution available (for certain eligible subscribers)
Who is Eligible?
- Age: 18 to 40 years
- Must have a bank account (savings account)
- Must have an Aadhaar and mobile number
- Must NOT be an income tax payer (rule added from October 2022)
- Must NOT be covered under other statutory social security schemes
How Much Pension Will You Get?
The pension amount depends on how old you are when you join and which pension slab you choose:
| Monthly Pension | Join at 18 | Join at 25 | Join at 30 | Join at 35 | Join at 40 |
|---|---|---|---|---|---|
| ₹1,000/month | ₹42 | ₹76 | ₹116 | ₹181 | ₹291 |
| ₹2,000/month | ₹84 | ₹151 | ₹231 | ₹362 | ₹582 |
| ₹3,000/month | ₹126 | ₹226 | ₹347 | ₹543 | ₹873 |
| ₹4,000/month | ₹168 | ₹301 | ₹462 | ₹722 | ₹1,164 |
| ₹5,000/month | ₹210 | ₹376 | ₹577 | ₹902 | ₹1,454 |
Amounts are approximate monthly contributions. Contributions are auto-debited from your bank account.
Key insight: Joining earlier means much lower monthly contributions for the same pension. Joining at 18 for ₹5,000 pension costs only ₹210/month — joining at 40 costs ₹1,454/month for the same pension.
How to Apply
Through Your Bank
- Visit your bank branch (any bank where you have a savings account)
- Fill the APY Subscriber Registration Form (free, available at branch)
- Provide: Aadhaar, mobile number, nominee details
- Choose your pension amount (₹1,000 to ₹5,000)
- Auto-debit set up from your savings account
Through Bank App / Net Banking
Most banks (SBI, PNB, HDFC, ICICI, etc.) allow APY enrollment through mobile banking:
- Login → Go to "Government Schemes" or "APY" section
- Fill details and confirm
- Auto-debit will be set up automatically
Through India Post Payments Bank
You can also enrol at your nearest Post Office.
Auto-Debit Schedule
Contributions are automatically debited:
- Monthly — on the due date you choose
- Quarterly or half-yearly also available
Ensure sufficient balance in your account to avoid penalties.
Penalty for Late Payment
| Contribution | Penalty per month |
|---|---|
| Up to ₹100 | ₹1 |
| ₹101–₹500 | ₹2 |
| ₹501–₹1,000 | ₹5 |
| Above ₹1,000 | ₹10 |
Continuous default for 6 months freezes the account. Default for 12 months deactivates it. Default for 24 months closes the account.
What Happens to Your Corpus
| Situation | What Happens |
|---|---|
| You reach 60 | You get monthly pension for life |
| Your death after 60 | Spouse gets same pension for life |
| Both you and spouse die | Nominee gets the full corpus |
| Your death before 60 | Spouse can continue or withdraw corpus |
How to Check Your APY Account
- NSDL APY Portal: npscra.nsdl.co.in/APY
- SMS: Send "PRAN" to 9212993399
- Bank statement: Shows APY contribution each month
- Bank branch: Ask for APY account statement
How to Exit
Before age 60: Voluntary exit now allowed. You get your own contributions + interest only (not government's share). Exit through your bank.
After age 60: Annuity (pension) starts automatically. No exit needed.
Helpline
APY / NPS Trust Helpline: 1800-110-708 (Toll Free) NSDL: 022-4090-4242 Website: npscra.nsdl.co.in