ATAL PENSION YOJANA

  • About:
    • Launched in: 2015.
    • Target group: It is primarily targeted at the unorganized sector and informal workers.
    • Eligibility condition: Indian Citizens between the age group of 18 to 40 years eligible to join APY through their savings bank account or post office savings bank account.
    • Monthly pension amount: It provides guaranteed minimum monthly pension of Rs. 1000 or Rs. 2000 or Rs. 3000 or Rs. 4000 or Rs. 5000 at the age of 60 years based on pension amount chosen.
  •  Governments contribution:
    • The Central Government would also co-contribute 50% of the total contribution or Rs. 1000 per annum, whichever is lower, to each eligible subscriber.

• The contribution will be for a period of 5 years, i.e., from Financial Year 2015-16 to 2019-20, who have joined the APY before 31st March, 2016, and who are not members of any statutory  social security scheme and who are not income tax payers.

  • Significance of participation in APY:
    •  Builds a pensioned society.
    • Adds sustainable fee income to banks by way of attractive incentive for mobilising APY at the rate of ₹120-150 for each account.