Do note that from October 1, income tax payers won’t be able to sign up for the government’s Atal Pension Yojana (APY) social security scheme. Note that this rule will not be applicable to subscribers who joined the program already or who sign up before October 1, 2022.
How to open APY account by visiting branch
As per the SBI website, “Customer can approach the bank branch where individual’s savings bank account is held / or through INB if customer is having an account and availed online internet banking facility. Or by visiting By Visiting CSPs”
According to the HDFC Bank website, “You can apply for this scheme through the bank you have an account with. Most bank branches of all the banks have forms for the Atal Pension Yojana scheme. The application form has to be completely filled up and submitted to the bank. If you have an account with the bank, your KYC details will be replicated from the bank account. Once the application is processed and the account is opened, the individual will be intimated by SMS on his registered mobile number”
How to open APY account online using Aadhaar
According to a circular on eAPY by the NPS Trust, here is how one can open an APY through Aadhaar without visiting the branch.
The process flow of eAPY registration and workflow at the end of APY- SPs are
i. Offline XML based Aadhar KYC
ii. Online Aadhaar based eKYC
Step 1: Subscriber will have two options i.e registration through Aadhaar or Virtual ID
Step 2: In case of Aadhaar, Subscriber is required to enter 12 digit Aadhaar
Step 3: In case of Virtual ID, Subscriber is required to enter 16 digit Virtual ID
Step 4: My Aadhaar option>>Aadhaar Services >> Virtual ID (VID) Generator >> enter your aadhaar>>enter captcha>>click on send OTP>> enter OTP>>Submit
Step 5: Note down the Virtual ID (VID) as this is required at the time of registration
The Subscribers who prefer eAPY as a mode of registration need to ensure the following, according to the circular dated April 21, 2022:
a. The demographic information provided at the time of registration through e APY by using e KYC/XML matches with the information available in Bank records.
b. The SB Account should have sufficient balance towards the 1st installment of APY contribution as per the choice of pension between Rs 1000 – Rs 5000.
c. APY Account activated after authentication of the information viz Name and Date of Birth fetched from Aadhaar.
d. Online registration rejected by the respective Banks informed, with the reasons of rejection to those Subscribers to resubmit their requests after rectification.
Tax benefits of APY
The Atal Pension Yojana contributions are tax deductible under Section 80CCD(1B) up to Rs. 50,000 per year in addition to the Rs. 1,50,000 under Section 80C, in addition to the pension benefits.
Anyone with a bank account is eligible for the Atal Pension Yojana scheme. The amount of the person’s monthly, quarterly, or semi-annual contribution will be automatically deducted from their bank account.