with an objective to secure the financial future of the individuals working in an unorganized sector. The Pension Fund Regulatory and Development Authority of India operates the Atal Pension Yojana Scheme. This pension scheme helps the individual to accumulate a fund for their retirement so that they can have a regular flow of income after 60 years.
Individuals between the age group of minimum 18 years to a maximum of 40 years can apply for the scheme. This plan can be availed by anyone having a saving account in a bank or post-office. In case, an individual want to exit the scheme then they will have to follow a simple procedure to do so. Further here we have explained in detail the exit policy of Atal Pension Yojana.
The subscriber will need to follow the below-mentioned steps to exit from the APY scheme.
To withdraw the fund voluntarily from APY account, the subscriber will need to fill the APY account closure form and submit it to the bank. The individual can avail the closure form from the respective bank or can download it from the NSDL website- https://www.npscra.nsdl.co.in/nsdl-forms.php-
Before, early exit in Atal Pension Yojana was only applicable in case of demise of the subscriber or terminal illness. However, now the APY scheme allows voluntary exit. In the closure Atal Pension Yojana scheme form, the subscribers need to give the savings account number, PRAN number and reason explaining the voluntary withdrawal that could be:
Once the subscriber submits the closure application, the bank will have to provide an acknowledgement to the subscriber.
There can be certain deductions applicable to the APY balance. The amount co-contributed by the government and the income earned on it will not be returned, while contribution made by the subscriber along with total actual income earned after deduction of account maintenance fees and asset management fees will be paid back to the subscriber. In case of closure of APY account due to death or subscriber or terminal illness, no deduction will be applicable and both the subscriber and government contribution along with the income amount will be paid back.
Let’s take a look at the different exit process of APY scheme.
Once the subscriber reaches the age of 60 years, he/she will need to submit a withdrawal request for either higher monthly pension or guaranteed minimum monthly pension to the bank where the APY account is held. If the returns are higher as compared to the guaranteed returns then the subscriber will receive the higher monthly pension. In case of demise of the subscriber, the equal amount of monthly pension will be paid to the spouse. Any other beneficiary will be eligible to avail the annuity amount in case of demise of both the subscriber and spouse.
In case of demise of the subscriber after attaining the age of 60 years, the spouse will get the pension amount. The other beneficiary of the scheme will receive the pension amount only after the demise of both subscriber and the spouse.
In case of demise of the subscriber before attaining the age of 60 years, the spouse can continue with the account. The account will be transferred in the name of the spouse and they will need to make the contribution till the subscriber would have attained the age of 60 years. The pension amount payable to the spouse will be the same as it would have been to the subscriber.
In case the spouse discontinues the scheme, the entire accumulated fund will be returned to the spouse or beneficiary of the scheme.