Atal Pension Yojana Closure

Atal Pension Yojana Closure Online

Below are the steps you should follow in order to close your Atal Pension Yojana account online:

Step 1: Visit the official NPS CRA website (e.g., npscra.nsdl.co.in).

Step 2: Navigate to "NPS Lite/APY" and then "Atal Pension Yojana."

Step 3: Look for the "Forms" section and choose "Withdrawal and Continuation."

Step 4: Download the "Voluntary Exit APY Withdrawal Form" (or "APY Death & Spouse Continuation" if applicable).

Step 5: Accurately fill in your PRAN, Name, Savings Bank Account details (Account Number, IFSC Code), and the "Reason for Closure."

Step 6: Prepare copies of your Proof of Identity, Proof of Address, Proof of Age, and a Cancelled Cheque/Bank Statement. For death/illness, include relevant certificates/reports.

Step 7: If available, upload the filled form and documents securely online via your bank or PFM portal. Otherwise, physically submit them to your bank branch and get an acknowledgement.

Step 8: Your bank/Pension Fund Manager will verify the request. This process can take several weeks.

Step 9: Funds will be transferred to your linked bank account, and you will receive an SMS/email notification once processed.

Atal Pension Yojana Closure Offline

Step 1: Go to the bank branch where your APY account is maintained.

Step 2: Ask for the "Voluntary Exit APY Withdrawal Form" or the "APY Death & Spouse Continuation Form," depending on your reason for closure.

Step 3: Carefully fill out the physical form with your PRAN, full name, the savings bank account details where you want the corpus credited, and the specific reason for closure.

Step 4: Collect physical copies of your identity proof, address proof, age proof, and a cancelled cheque or bank statement. For death or illness, include the relevant death certificate or medical reports.

Step 5: Hand over the completed, signed form along with all supporting documents to a bank official. Ensure you get an acknowledgement receipt.

Step 6: The bank will verify your documents and process your request. This process can take several weeks.

Step 7: Once processed, the funds will be transferred to your linked bank account. You will typically receive an SMS or email notification.

Exit Guidelines of Atal Pension Yojana Account

You can close your APY account in the following situations:

• On attaining 60 years of age.
• In case the subscriber passes away before 60.
• In exceptional cases, like voluntary exit or specified critical illnesses before age 60.

Documents Required for APY Account Closure

If the subscriber dies before 60 and a spouse or nominee is applying for account closure, they must submit:

• Original death certificate of the subscriber
• Spouse or nominee"s bank details and KYC documents
• Relationship proof (e.g., a legal heir certificate or a family certificate issued by an Executive Magistrate)

How to Download the APY Closure Form

Follow these steps to download the closure form for the pension plan:

• Visit the official NPS CRA website.
• Click on "NPS Lite/APY" and select "Atal Pension Yojana".
• Go to the "Forms" section and choose "Withdrawal and Continuation".
• Download the relevant form:
• APY Death & Spouse Continuation Form
• Voluntary Exit APY Withdrawal Form

How to Exit From Atal Pension Yojana

1. Subscriber's Death

   If the subscriber dies before turning 60, the spouse has two options:

   • Close the APY Account: The spouse or nominee receives the accumulated corpus.
   • Continue the APY Account: The spouse can maintain the account in their name and receive the same pension benefits until their own death.

2. Voluntary Exit

   You may voluntarily exit APY before age 60, but only under exceptional circumstances:

   • You will receive only your contributions and the returns earned.
   • Government co-contributions will not be paid out unless the exit is due to specified illnesses.

3. Exit Due to Specified Illness

   In case of serious medical conditions, the subscriber is allowed to exit APY:

   • The subscriber will receive their contributions, Government contributions, and returns.
   • If aged 60 or above, the subscriber can request the bank for monthly pension payouts.

Specified Illnesses That Qualify for APY Withdrawal

You can apply for early withdrawal under APY in case of the following illnesses:

• Kidney failure
• Cancer
• Stroke
• Coma
• Major organ transplant
• Coronary artery bypass
• Heart valve surgery
• Myocardial infarction
• Aorta graft surgery
• Paralysis
• Primary pulmonary arterial hypertension
• Complete blindness
• Multiple sclerosis
• Life-threatening accidents
• Other critical illnesses as notified by PFRDA

Always check for updated notifications issued under the National Pension System Regulations, 2015.

Key Considerations Before Closing APY

While APY offers flexibility in exiting the scheme, sudden closure can result in:

• Loss of Government co-contribution, if exiting voluntarily
• Lower retirement savings, potentially impacting future financial stability

Unless it's a medical emergency or unavoidable situation, it's advisable to continue contributions till 60 to receive the full pension benefit.

Conclusion

Closing an APY account involves specific steps and understanding the financial implications, especially regarding government co-contributions. Whether due to reaching maturity, unforeseen circumstances like illness or death, or a voluntary exit, following the correct procedure is vital. Always consider consulting a financial expert before making such a decision to ensure it aligns with your retirement planning and financial well-being.