Atal Pension Yojana

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What is Atal Pension Yojana?

Atal Pension Yojana is a government-backed scheme that lets subscribers from unorganised sectors invest in the early age and avail a pension after retirement.

The investment cum pension model was launched by the Government of India in 2015 and is managed by the Pension Funds Regulatory Authority of India (PFRDA)

  • People can invest from 18 to 40 years of age and receive a pension from the age of 60 years. The pension amount depends upon the investment and can be 1000, 2000. 3000, 4000 or 5000.

  • The primary objective of this scheme is to provide a regular income after retirement, to people from the private or unorganized sectors.

Atal Pension Yojana Eligibility

  • Any Indian citizen between 18-40 years of age is eligible to invest under this scheme.

  • He or She should have a valid mobile number and Aadhaar linked with a bank account.

  • The contribution should be made for a minimum of 20 years.

  • The citizen shall comply with KYC norms.

Atal Pension Yojana Details

These are some important points to remember under Atal Pension Yojana:

  1. Contribution
  2. Penalty
  3. Premature Withdrawal
  4. Closure


The minimum monthly contribution can be as low as ₹21. But this solely depends on your age and pension goals. The contribution chart can be obtained from this website. You can increase or decrease the amount once a year by visiting the bank and completing the formalities.


In case you’re not able to contribute for a certain period, then a penalty of ₹1 would be charged for every ₹100 invested. If the default is for 6 months, the account will be frozen and if it continues for 12 months, the account will be closed.

Premature Withdrawal

No withdrawals are supported under this scheme. Funds can only be taken out in case of the death of the account holder or some life-threatening illness.


If you wish to close the account before 60, then the accumulated amount with interest will be returned and you will not be eligible for pension.

Atal Pension Yojana Benefits

This retirement tool helps small investors to gain a sense of relief after retirement. The benefits of Atal Pension Yojana include:

  1. Regular Income
  2. Minimum Investment
  3. Tenure
  4. Safe

Regular Income

APY is a great option for employees who are not provided with pension schemes by their employers. It helps them to enjoy a regular income and reduce financial dependence to a certain extent.

Minimum Investment

The contributions are really low and can easily be invested monthly or quarterly or even half yearly, if one wishes to.


This is a long term investment scheme (20 years), benefits of which can be reaped later in life. It creates a habit of investing from an early age.


The scheme was launched by the Government of India, hence your returns are guaranteed and the entire threshold is completely secure.

How to apply for Atal Pension Yojana?

All nationalized banks provide the facility of the Atal Pension Yojana. You can visit any of your nearest branches to register yourself under the scheme. The process is not supported online yet.

Step 1: Fill the registration form.

Step 2: Attach documents if required (KYC, mobile number or photographs).

Step 3: Submit a copy of your aadhaar card.

You will receive an SMS alert on your mobile number, confirming the registration. The amount will be deducted every month/quarter/half year from your bank account.

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