Atal Pension Yojana (APY) Scheme in India: A Complete Guide for 2025

Atal Pension Yojana (APY) Scheme in India: A Complete Guide for 2025

The Atal Pension Yojana (APY) is a government-backed pension scheme launched in 2015 to provide retirement security to workers in the unorganized sector. Regulated by the Pension Fund Regulatory and Development Authority (PFRDA), the APY scheme in India has gained immense popularity, with over 81 million subscribers as of 2025. It offers a guaranteed monthly pension and is especially beneficial for low-income individuals, women, and youth.

What is Atal Pension Yojana?

The Atal Pension Yojana details reveal that it’s a voluntary contribution-based scheme designed to ensure a fixed pension ranging from ₹1,000 to ₹5,000 per month after the age of 60. The scheme is open to Indian citizens aged 18–40 and is aimed at those not covered under any statutory social security system.

Key Features of APY

Guaranteed pension: ₹1,000 to ₹5,000/month.
Lifetime pension after 60 years.
Government co-contribution for eligible subscribers.
Regulated by PFRDA.
High participation from youth and women.

Eligibility Criteria

To apply for APY:

Age: 18–40 years

Must have a savings bank account

Aadhaar card recommended

Not an income taxpayer (as of Oct 2022)

Who can apply for APY? Primarily unorganized sector workers like street vendors, delivery agents, and domestic helpers.

Contribution & Pension Chart

Age of Entry	₹1,000 Pension	₹5,000 Pension
18 years	₹42/month	₹210/month
30 years	₹116/month	₹577/month
40 years	₹291/month	₹1,454/month

How to Apply / Registration Process

Online Registration (Faster Option)

Log in to Net Banking or Mobile Banking of your bank (SBI, PNB, HDFC, ICICI, Axis, etc.).
Go to Social Security Schemes / Pension Schemes.
Select Atal Pension Yojana (APY).
Fill in details: Name, DOB, Aadhaar, Mobile Number, and Pension Choice.
Submit and authorize auto-debit of monthly contributions.

Offline Registration

Visit your bank branch or post office.
Collect and fill the APY registration form.
Attach Aadhaar, bank passbook, and mobile number.
Submit to the bank; auto-debit will start from your account.
Use the APY online apply option for faster registration. Open APY Account | NATIONAL PENSION SYSTEM TRUST

Tax Benefits

Subscribers can claim deductions:

Up to ₹1.5 lakh under Section 80CCD(1)
Additional ₹50,000 under Section 80CCD(1B)
Atal Pension Yojana tax benefits make it attractive for middle and lower-income groups.

Withdrawal & Exit Rules

Exit before 60 allowed in cases of death or terminal illness
Otherwise, premature exit is restricted
APY exit policy ensures long-term commitment.

How to Check APY Account Balance

How to Check APY Account Balance
1. APY Official Website (NSDL-CRA Portal)

Visit: https://www.npscra.nsdl.co.in
Select APY e-PRAN/Transaction Statement
Enter PRAN/Bank details + OTP
Download your APY contribution statement

2. Net Banking / Mobile Banking

Log in to your bank’s app or portal
Go to APY/Pension Schemes → Balance/Statement

3. SMS Alerts

Monthly contribution & balance details are sent via SMS to your registered number.

Pros & Cons

Pros:	Cons:
Guaranteed pension	Fixed returns
Government support	Limited pension amount
Tax savings

Comparison with Other Schemes

Feature	APY	NPS
Returns	Fixed (₹1k–₹5k)	Market-linked
Tax Benefits	Section 80CCD(1B)	Section 80C + 80CCD(1B)
Target Group	Unorganized sector	All citizens

APY vs NPS: APY is ideal for low-income earners seeking guaranteed returns.

Latest Updates, over 81 million subscribers in 2025 from which 55% of new subscribers are women.

Equity allocation increased to 25% for better returns

Frequently Asked Questions (FAQs)

Q1. What is the minimum and maximum pension under APY?

₹1,000 to ₹5,000 per month depending on contribution and age.

Q2. Can income taxpayers apply for APY?

No, income taxpayers are not eligible since October 2022.

Q3. How do I check my APY balance?

Via SMS, net banking, or the official APY portal.

Q4. Is APY better than NPS?

APY offers fixed returns; NPS offers market-linked returns. Choose based on your risk appetite.

Q5. Can I exit APY before 60?

Only in cases of death or terminal illness.

Conclusion

The Atal Pension Yojana is a powerful tool for retirement planning, especially for those in the informal workforce. With guaranteed pensions, tax benefits, and easy registration, the APY scheme ensures financial dignity in old age. If you're eligible, don’t wait secure your future today.

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