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](http://npscra.nsdl.co.in)).

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

Step 3: Click on the "Forms" section and choose "Withdrawal and Continuation."

Step 4: Download the appropriate closure form:

"Voluntary Exit APY Withdrawal Form" for voluntary exits.

"APY Death & Spouse Continuation Form" if applicable due to death or illness.

Step 5: Fill in your PRAN (Permanent Retirement Account Number), full name, bank details (Account Number, IFSC Code), and reason for closure.

Step 6: Attach the necessary documents, including proof of identity, address, age, and a cancelled cheque or bank statement. For death or illness, include the relevant medical or death certificates.

Step 7:Upload the completed form and documents securely via your bank or Pension Fund Manager (PFM) portal, or submit them physically at your bank branch.

Step 8:The bank or PFM will verify the closure request, a process that can take several weeks.

Step 9:Once the request is processed, your accumulated funds will be transferred to your linked bank account, and you will receive an SMS or email notification confirming the transfer.

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 reaching 60 years, the spouse has two options:

   • Close the APY Account: The spouse or nominee receives the accumulated corpus.
   • Continue the APY Account: The spouse can continue with the APY account in their name, making contributions until their own 60th birthday, and receive the same pension benefits.

2. Voluntary Exit

   You may choose to exit APY voluntarily before age 60, but only under certain circumstances. If you do so:

   • You will receive only your own contributions and the net returns earned on them.
   • Government co-contributions will not be refunded unless the exit is due to specified illnesses.

3. Exit Due to Specified Illness

   If the subscriber is diagnosed with a specified critical illness, they can exit the APY:

   • The subscriber will receive both their contributions and government co-contributions along with the accumulated returns.
   • If the subscriber is 60 or above, they can also opt to begin receiving 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

The process of closing an APY account involves a set of steps that must be followed carefully. Whether it's due to reaching maturity, an unfortunate event, or early exit, understanding the process helps ensure you receive the financial benefits you are entitled to. Consulting a financial expert before making such decisions is always a wise choice, as they can guide you through the closure process, taking into account your retirement planning and long-term financial goals.