The Atal Pension Yojana allows early withdrawal before age 60, though the amount refunded depends on the type of exit. According to PFRDA guidelines, voluntary exit before 60 refunds the subscriber's contributions along with income accrued on those contributions, after deduction of applicable account maintenance charges. However, subscribers who joined APY before March 31, 2016 and received government co-contribution will not receive the government co-contribution and income earned on it if they voluntarily exit before age 60. This means the amount received on premature exit can be lower than the total amount that may have accumulated in the APY account. The PFRDA-backed framework restricts premature exit to the subscriber's own contributions and net returns after applicable charges, with the government co-contribution and returns on it not returned to the subscriber on voluntary premature exit.
APY subscribers receive guaranteed minimum monthly pension payouts of ₹1,000, ₹2,000, ₹3,000, ₹4,000, or ₹5,000 after age 60, based on contributions made after joining the scheme. The scheme has a tenure until the subscriber reaches 60 years of age, after which 100% annuitisation of accumulated pension is eligible. A subscriber wishing to claim pension payout must submit a request to their bank or post office, and once accepted, will receive monthly pension until death. The pension continues for the subscriber's lifetime, and after the subscriber's death, the same pension amount is payable to the spouse for life. After both subscriber and spouse die, the pension wealth accumulated at the time of the subscriber's 60th birthday is returned to the nominee, subject to the scheme's rules.
APY accounts can be opened through banks or post offices using an Aadhaar-linked savings account. Alternatively, subscribers can open new bank or post office accounts and complete Aadhaar-KYC to gain access to the pension scheme. For online registration, subscribers must check if their bank allows netbanking facility registration for APY. The application process involves submitting a filled form and KYC at the bank or post office, with the bank providing an acknowledgement receipt upon form submission.
Earlier this week, the Bank of Maharashtra (BoM), State Level Bankers' Committee (SLBC) and PFRDA conducted an outreach drive in Thane district focused on enrolment in the scheme, particularly for unorganised sector workers. According to PTI reports citing officials, BoM officials stressed on the importance of coordinated banking efforts to extend social security to underserved populations, noting that APY's guaranteed monthly pension benefits can secure financial stability for citizens.
