Categories: Business

Change your pension amount in APY anytime during the year


changes in APY

new Delhi. Pension regulator PFRDA has asked banks to accept the request for change in the contribution amount of Atal Pension Yojana (APY) shareholders at any time during the year and take necessary steps for the same. The objective of this initiative is to make the scheme more attractive. This system has come into effect from July 1. Earlier, shareholders were allowed to change the contribution amount only in the month of April. The Pension Fund Regulatory and Development Authority (PFRDA) said in a release, "With this arrangement APY shareholders will be able to reduce / increase the contribution amount as per their income and APY change in ability to contribute. This is necessary to maintain contribution to the scheme for 60 years. "

According to the release, the regulator has asked all banks to take steps to increase or decrease the pension amount as per the request of APY shareholders anytime of the year. This system has come into effect from July 1. According to PFRDA, however, shareholders can change the pension scheme only once in a financial year. Around 2.28 crore shareholders are registered under the Atal Pension Yojana. PFRDA also stated that from July 1, 2020, APY contribution amount has started to be deducted automatically from the savings account of the concerned shareholder. Due to Kovid-19 epidemic, the deposit of the contribution amount was banned till 30 June. Under the current system, if the APY contribution is pending between April-August 2020, it will automatically be deducted from the shareholders' savings accounts by September 30 and no interest will be paid as penalty. Atal Pension Yojana was launched in May 2015. This scheme is open to all citizens of the country between 18 and 40 years. Under this scheme, pensioners are guaranteed pension ranging from Rs 1,000 to Rs 5,000 every month when they turn 60, depending on the amount contributed by them.

This post was published on July 7, 2020 2:25 am

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