Atal Pension Yojana: Benefits of Modifications

Atal Pension Yojana: Benefits of Modifications

Question: Atal Pension Yojana has been launched by PM Narendra Modi this year. Discuss the modifications it has recently undergone and their benefits.

- State governments have given certain suggestions on the basis of which this scheme has been modified with respect to the following provisions

- The individual subscribers shall have an opportunity to make the contribution on a monthly, quarterly, half yearly basis instead of on a monthly basis earlier

- Discontinuation of payment of contribution provision has been considerably modified in favour of the subscriber. The account will not be ended and closed till the account balance with self-contributions minus the Government co-contributions becomes zero due to deduction of account maintenance charges and fees

- Also the penalty on delayed payment has been simplified to INR 1 per month for contribution of Rs. 100, or part thereof, for each delayed monthly payment instead of different slabs provided earlier

- Similarly, early exit from the scheme before age 60 was not permitted earlier except in exceptional circumstances, that is, in the case of the death of the beneficiary or terminal disease.

- Now the modified provision permits the subscriber to voluntarily exit with the condition that –

- He shall only be refunded the contributions made by him to the yojana, with the net actual interest earned on his contributions (following deduction of account maintenance charges) and ;

- The Government co-contribution, and the interest earned on the Government co-contribution is not to be refunded to subscribers

Facts and Stats

- APY was launched by PM Modi in May 2015

- It provides minimum guaranteed pension of INR 1000/2000/3000/4000/5000 per month for students aged 18 to 40 years