In June 2015, Indian government with the administration of Pension Fund Regulatory and Development Authority (PFRDA) and National Pension System (NPS) launched "Atal Pension Yojana" to benefit the uncategorized individuals of the India Society. This pension scheme was introduced for those people from the weaker section of the society keeping in mind that it could benefit them during their old age.
But, this pension scheme is also beneficial for those individuals working in private sectors and those who are self-employed. It focuses on helping people from the weaker section to save some amount for their older age. The pension money people get will depend on their contribution made.
After the age of 60, this scheme will provide a monthly income starting from Rs 1000 to up to Rs 5000 as monthly pension till the scheme holder dies. To make the most out of this scheme, the government pleads that one should start contributing from the age 18 until they turn 40.
If the scheme holder gets deceased, his/her spouse will be getting the pension amount. Again, the pension amount will fully depend on the contribution made by the user. The maximum duration of time one can contribute is 20 years and above.
The monthly contribution of the amount will be different according to the tenure of payment. For example, if you tend to start contributing by the age of 18, your monthly payment required would be Rs 42, and if you keep contributing until the age of 40 years, after your retirement that is; after 60 years of age, you will get Rs 1000 as a monthly pension.
The payment facility included with the scheme is through any bank account in India or by the auto-debit facility. The important thing to keep in mind is that if a subscriber delays in contributing or fails to contribute, he/she has to sign-up again to this scheme by paying the pending amount with the interest-rates of that particular period.
From 2015 to 2020, the Indian government will be contributing some amount to this scheme for a span of five years to gather more people into opening an account in this scheme that is the Atal Pension Yojana Account.
The eligibility criteria for opening an account is that one must not be a taxpayer or covered with some social security schemes. Also, one has to make a regular contribution to their account which has been opened between 1st June 2015 and 31st December 2015.
The respective state governments will also be contributing to this scheme according to the requirement which falls under the administration of PFRDA and the central government.