Terms and Conditions for APY

• I meet the prescribed eligibility criteria for assistance under APY and I have read and understood the terms and conditions of the Scheme. I hereby agree to the same and declare that the information furnished by me is true and correct, to the best of my knowledge and belief. I undertake to immediately inform the bank of any change in the above information furnished by me. I confirm, that I have not registered / enrolled for APY with any other bank. We provide consent to share my personal information with regulator – PFRDA / Protean CRA for registration / updation in my APY account. I understand that I shall be fully liable for submission of any false or incorrect information or documents. I have read/been explained and have understood the APY guidelines. I further agree to be bound by the terms and conditions of provision of services under the scheme as approved by PFRDA/Govt. of India.
  
  
• Atal Pension Yojana (APY) is open to all eligible* savings bank account holders.
  
  

*Eligibility Criteria:

a. Citizen of India

b. Age between 18 to 39 years

c. Savings account holder

• The Central Government would also co-contribute 50% of the total contribution or Rs. 1000 per annum, whichever is lower, to each eligible subscriber, for a period of 5 years, i.e., from Financial Year 2015- 16 to 2019-20, who join the APY before 31st March, 2016, and who are not members of any statutory social security scheme and who are not income tax payers. Therefore, APY will be focused on all citizens in the unorganized sector.
  
  
• Under APY, the monthly pension would be available to the subscriber, and after him to his spouse and after their death, the pension corpus, would be returned to the nominee of the subscriber.
  
  
• Under the APY, the subscribers would receive the fixed minimum pension of Rs. 1000 per month, Rs. 2000 per month, Rs. 3000 per month, Rs. 4000 per month, Rs. 5000 per month, at the age of 60 years, depending on their contributions, which itself would be based on the age of joining the APY. Therefore, the benefit of minimum pension would be guaranteed by the Government. However, if higher investment returns are received on the contributions of subscribers of APY, higher pension would be paid to the subscribers
  
  
• The minimum age of joining APY is 18 years and maximum age is 39 years. Therefore, minimum period of contribution by any subscriber under APY would be 20 years or more.
  
  
• Contribution will be deducted depending upon the frequency (Monthly/Quarterly/Half yearly) selected, from the customer’s account on an auto-debit basis.
  
  
• The Government co-contribution is payable to eligible PRANs by PFRDA after receiving the confirmation from Central Record Keeping Agency once in a year. Government contribution will be credited in subscriber’s Savings Bank account.
  
  

i. The Government co-contribution is payable to eligible PRANs by PFRDA after receiving the confirmation from Central Record Keeping Agency once in a year. Government contribution will be credited in subscriber’s Savings Bank account.

ii. All bank account holders under the eligible category may join APY with auto-debit facility to accounts, leading to reduction in contribution collection charges. The subscribers should keep the required balance in their savings bank accounts to avoid any late payment penalty.

iii. Also any false declaration about his/her eligibility for benefits under this scheme for whatsoever reason, the entire government contribution shall be forfeited along with the penal interest.

iv. The subscribers are required to opt for a monthly pension from Rs. 1000 - Rs. 5000 and ensure payment of stipulated monthly contribution regularly. The subscribers can opt to decrease or increase pension amount during the course of accumulation phase, as per the available monthly pension amounts. However, the switching option shall be provided once in a year during the month of April.

v. Each subscriber will be provided with an acknowledgement slip after joining APY which would in variably record.

• Penalty for default:
  
  

i. Under APY, the individual subscribers shall have an option to make the contribution on a monthly basis. Kotak Mahindra Bank shall collect additional amount for delayed payments, such amount will vary from minimum Rs. 1 per month to Rs 10/- per month as shown below:

a) Rs. 1 per month for contribution upto Rs. 100 per month.

b) Rs. 2 per month for contribution upto Rs. 101 to 500/- per month.

c) Rs. 5 per month for contribution between Rs 501/- to 1000/- per month.

d) Rs. 10 per month for contribution beyond Rs 1001/- per month.

ii. The fixed amount of interest/penalty will remain as part of the pension corpus of the subscriber.

iii. Discontinuation of payments of contribution amount shall lead to following:

a. After 6 months account will be frozen.

b. After 12 months account will be closed.

• Recovery of contribution for delayed payments: APY module will raise demand on the due date and continue to raise demand till the amount is recovered from the subscriber’s account. The due date for recovery of monthly contribution may be treated as the first day or any day in the calendar month for each subscriber. Bank can recover amount any day till the last day of the month. It will imply that contribution are recovered as and when funds are available any point during the month. Monthly contribution will be recovered along with the overdue interest if applicable. All subscribers under APY remain connected on their mobile so that timely SMS alerts can be provided to them at the time of making their subscription, auto debit of their accounts and the balance in their accounts.
  
  
• Exit and pension payment Upon completion of 60 years, the subscribers need to submit the request to the respective NLCC for drawing the guaranteed monthly pension. Exit before 60 years of age is not permitted; however, it is permitted only in exceptional circumstances, i.e. in the event of the death of beneficiary or terminal disease. In case the APY account is closed due to terminal illness or death of the Subscriber, the accumulated corpus (subscriber contribution, Government co-contribution and the returns thereon) in the subscriber account will be returned to the subscriber or nominee as the case may be. However in exceptional cases, subscriber may choose to voluntary exit from APY scheme due to reasons other than death / terminal illness. In such case where a subscriber who has availed of Government co contribution under APY, chooses to voluntarily exit APY before attaining the age of 60 years, he/she shall be refunded the contributions made by him /her to APY along with the net accrued income earned on his / her contributions after deducting the a/c maintenance, investment management etc. charges. The Government co -contribution and the accrued income earned on the Government co -contribution shall not be given to such subscribers.
  
  
• Table for contribution
  
  

  Age of Entry	Years of Contribution	Monthly pension of Rs. 1000.	Monthly pension of Rs. 2000.	Monthly pension of Rs. 3000.	Monthly pension of Rs. 4000.	Monthly pension of Rs. 5000.
  18	42	42	84	126	168	210
  19	41	46	92	138	183	228
  20	40	50	100	150	198	248
  21	39	54	108	162	215	269
  22	38	59	117	177	234	292
  23	37	64	127	192	254	318
  24	36	70	139	208	277	346
  25	35	76	151	226	301	376
  26	34	82	164	246	327	409
  27	33	90	178	268	356	446
  28	32	97	194	292	388	485
  29	31	106	212	318	423	529
  30	30	116	231	347	462	577
  31	29	126	252	379	504	630
  32	28	138	276	414	551	689
  33	27	151	302	453	602	752
  34	26	165	330	495	659	824
  35	25	181	362	543	722	902
  36	24	198	396	594	792	990
  37	23	218	436	654	870	1087
  38	22	240	480	720	957	1196
  39	21	264	528	792	1054	1318