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Courtesy- www.financialexpress.com
Courtesy- www.financialexpress.com

Atal Pension Yojana: A Pension Scheme for All

Name of the scheme: Atal Pension Yojana (APY)

Purpose: The main purpose of this scheme is to address the longevity risks among the workers in unorganized sector and to encourage them in the unorganized sector to voluntarily save for their retirement.


  • Any Citizen of India, aged between 18 years and 40 years, who has savings bank account and also possesses a mobile number, would be eligible to subscribe to this scheme.
  • The minimum age of joining this scheme is 18 years and maximum age is 40 years. Pension payment would start at the age of 60 years. Hence, minimum period of contribution by the subscriber under the scheme would be 20 years or more.


Government funding-

  • Indian Government would provide fixed pension guarantee for the subscribers.
  • It also would co-contribute 50% of the subscriber contribution or Rs. 1,000/- per annum, whichever is less, to eligible subscribers.
  • Lastly, the government would also reimburse the promotional and development activities including incentive to the contribution collection agencies to encourage people to join the APY.

Minimum/Maximum Pension Payable-

This scheme would pay a minimum pension of Rs. 1,000/- per month and a maximum pension of Rs. 5,000/- per month, depending on the subscriber’s own contribution per month.

Atal Pension Yojana – Contribution Period, Contribution Levels, Fixed Monthly Pension and Return of Corpus to the Nominees of Subscribers-


Penalty for default:

The individual subscribers would be given an option to make the contribution on a monthly basis. Banks are required to collect additional amount for delayed payments which would vary from minimum Rs. 1 per month to Rs 10/- per month as shown below:

  • 1 per month for contribution upto Rs. 100/- per month.
  • 2 per month for contribution upto Rs. 101/- to 500/- per month.
  • 5 per month for contribution between Rs 501/- to 1000/- per month.
  • 10 per month for contribution beyond Rs 1001/- per month.

The fixed amount of interest/penalty would remain as part of the pension corpus of the subscriber.

Discontinuation of payments of contribution amount would lead to:

  • After 6 months account would be frozen.
  • After 12 months account would be deactivated.
  • After 24 months account would be closed.

Where to apply?

Registration form has been attached here. You can approach the National Pension System (NPS) for further details.

For more information regarding the scheme, click here or here

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