Atal Pension Yojana (APY) subscribers who want to exit from the scheme must make sure their savings bank account is nonetheless operative via which the contributions have been getting made. This will hold the withdrawal method smooth and timely credit of dollars will come about in the bank account.
PFRDA has not too long ago brought about modifications in Premature Exit Processing of APY for the advantage of Subscribers by proposing to introduce Instant Bank Account Verification in the interest of Subscribers for orderly processing of their exit requests.
The suggestions will facilitate timely transfer of withdrawal quantity in the Bank Account of APY Subscribers and also as an more due diligence to guard their corpus lying in the Permanent Retirement Account Number (PRAN).
“Instant Bank Account verification by penny drop” shall also be undertaken by CRA to confirm the operative status of SB Account as element of enhanced due diligence which includes the name matching among PRAN and Bank Account Number. This will aid to hold the method smooth at the time of premature withdrawal requests exactly where the linked SB Account is operative so as to guarantee receipt of APY account closure proceeds in the SB account.
For closing APY account, one demands to apply in the prescribed kind with the bank exactly where the savings account is held. The voluntary exit from APY can be carried out anytime ahead of the age of 60 and the refund will come to one’s savings account. Instead of closing APY, if challenging-pressed for funds, it is greater to delay contributions. Stopping APY contributions will not deactivate the account and later on, one can regularize APY account by paying a penalty of Rs 1 per month for the contribution of every single Rs one hundred.
If the linked SB Account is closed/dormant, the modified method guarantees preservation of Subscribers contribution in the PRAN itself to produce optimum industry based returns.
If the SB account facts at the time on-boarding and exit are not identical, unique Account Number of identical Bank or the unique Bank, the APY SPs are advised that the APY closure proceeds are credited to the identical Bank Account quantity and could accept the request with unique Account quantity or account of a unique Bank only as an exception. Such requests are to be accompanied by proof of Alternate Account Number acceptable to the Bank.
It is greater for the APY subscriber to hold their respective Bank account active when they submit their premature withdrawal request, till their request for premature withdrawal request is processed.
Atal Pension Yojana (APY) is the flagship Social Security Scheme of Government of India administered by PFRDA via Banks and Dept of Post. The scheme provides Guaranteed Pension Benefits to the eligible Indian Citizens just after reaching the age of 60 years, who subscribe and contribute to the scheme.