Atal Pension Yojana (APY), a scheme offering guaranteed pension to the Indian citizens, especially the workers under the unorganized sector. This scheme aims to improve the social security of the people post-retirement. Those who fall under the age group of 18-40 years can apply for the APY scheme.
Under the APY scheme, the contributions are made by the subscriber monthly. If there're any delayed payments and/or defaults, then the banks will levy penalty charges that are set by the government of India.
The penalty charged for delaying or/and defaulting in contributions towards the Atal Pension Yojana would be as per the penalty slab seen below:
For contributions up to Rs. 100, Rs. 1 per month is charged.
For contributions up to Rs. 101 to 500/- per month, Rs. 2 per month is charged.
For contribution between Rs 501/- to 1000/- per month, Rs. 5 per month is charged.
For contribution beyond Rs 1001/- per month, Rs. 10 per month is charged.
In case of discontinuation of payments of contribution amount, the following steps will be taken by the bank:
After 6 months, the account will get frozen.
After 12 months, the account will get deactivated.
After 24 months, the account will get closed
If the subscriber desires to continue its APY account and enjoy the benefits of the scheme, then it must make sure the savings bank account has sufficient funds for auto-debit of the required contribution amount. The penalty and interest will remain a fixed part of the subscriber’s pension corpus.