Indian Government announces Schemes for the benefit of the society from time to time. These schemes can be either Centre or State specific or a joint collaboration between the Centre and the States. In this section, we have attempted to provide you an easy and single point of access to information about these schemes of the Government.
Atal Pension Yojana
The scheme is launched on June 1, 2015 and focus is on the unorganised sector. A pension provides people with a monthly income when they are no longer earning.
The scheme is administered by the Pension Fund Regulatory and Development Authority (PFRDA) through NPS Architecture.
Under the APY, there is guaranteed minimum monthly pension for the subscribers ranging between Rs. 1000 and Rs. 5000 per month.
The benefit of minimum pension would be guaranteed by the GOI.
GOI will also co-contribute 50% of the subscriber’s contribution or Rs. 1000 per annum, whichever is lower. Government co-contribution is available for those who are not covered by any Statutory Social Security Schemes and is not income tax payer.
GOI will co-contribute to each eligible subscriber, for a period of 5 years who joins the scheme between the period 1st June, 2015 to 31st December, 2015. The benefit of five years of government Co-contribution under APY would not exceed 5 years for all subscribers including migrated Swavalamban beneficiaries.
All bank account holders may join APY.
- Eligibility for APY : Atal Pension Yojana (APY) is open to all bank account holders who are not members of any statutory social security scheme.
- Age of joining and contribution period : The minimum age of joining APY is 18 years and maximum age is 40 years. One needs to contribute till one attains 60 years of age.
- Enrolment agencies : All Points of Presence (Service Providers) and Aggregators under Swavalamban Scheme would enrol subscribers through setup of National Pension System.
Indicative Monthly Contribution Chart
|Age of Entry||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|
Charges for default
In Atal Pension Yojna monthly contribution would automatically be deducted from Subscriber’s bank account. Subscriber should ensure that the Bank account to be funded enough for auto debit of contribution amount. If there is delay in contributions then Bank would levy penalty. The fixed amount of interest/penalty will remain as part of the pension corpus of the subscriber.
- Rs 1 per month for contribution upto Rs. 100 per month.
- Rs 2 per month for contribution upto Rs. 101 to 500 per month.
- Rs 5 per month for contribution between Rs 501 to 1000 per month.
- Rs 10 per month for contribution beyond Rs 1001 per month.
Discontinuation of payments of contribution amount shall lead to following:
- After 6 months account will be frozen.
- After 12 months account will be deactivated.
- After 24 months account will be closed.
Exiting from Atal Pension Yojna
- On attaining the age of 60 years: The exit from APY is permitted at the age with 100% annuitisation of pension wealth. On exit, pension would be available to the subscriber.
- In case of death of subscriber pension would be available to the spouse and on the death of both of them (subscriber and spouse), the pension corpus would be returned to his nominee.
- Exit Before the age of 60 Years: 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.
Pradhan Mantri Jeevan Jyoti Bima Yojana
Key Features of the Scheme:
- Eligibility : Available to people in the age group of 18 to 50 and having a bank account. People who join the scheme before completing 50 years can, however, continue to have the risk of life cover up to the age of 55 years subject to payment of premium.
- Premium : Rs 330 per annum. It will be auto-debited in one installment.
- Payment Mode : The payment of premium will be directly auto-debited by the bank from the subscribers account.
- Risk Coverage : Rs. 2 Lakh in case of death for any reason.
- Terms of Risk Coverage : A person has to opt for the scheme every year. He can also prefer to give a long-term option of continuing, in which case his account will be auto-debited every year by the bank.
- Who will implement this Scheme? : The scheme will be offered by Life Insurance Corporation and all other life insurers who are willing to join the scheme and tie-up with banks for this purpose.
Pradhan Mantri Suraksha Bima Yojana
Key Features of the Scheme:
- Eligibility : Available to people in age group 18 to 70 years with bank account.
- Premium : Rs. 12 per annum.
- Payment Mode : The premium will be directly auto-debited by the bank from the subscribers account. This is the only mode available.
- Risk Coverage : For accidental death and full disability – Rs 2 Lakh and for partial disability – Rs 1 Lakh.
- Eligibility : Any person having a bank account and Aadhaar number linked to the bank account can give a simple form to the bank every year before 1st of June in order to join the scheme. Name of nominee to be given in the form.
- Terms of Risk Coverage : A person has to opt for the scheme every year. He can also prefer to give a long-term option of continuing in which case his account will be auto-debited every year by the bank.
- Who will implement this Scheme? :The scheme will be offered by all Public Sector General Insurance Companies and all other insurers who are willing to join the scheme and tie-up with banks for this purpose.
- The premium paid will be tax-free under section 80C and also the proceeds amount will get tax-exemption u/s 10(10D).But if the proceeds from insurance policy exceed Rs.1 lakh, TDS at the rate of 2% from the total proceeds if no Form 15G or Form 15H is submitted to the insurer.