Note that from October 1, income tax payers will not be able to sign up for the government’s Atal Pension Yojana (APY) social security scheme. Note that this rule will not apply to subscribers who have already joined the program or who have signed up before October 1, 2022.
How to open APY account by visiting a branch
According to State Bank Of India The website reads, “The customer can approach the bank branch where the individual has a savings bank account and/or through INB if the customer has an account and has availed online internet banking facility. or by visiting CSPs” HDFC bank website, “You can apply for this scheme through the bank in which you have an account. Most of the bank branches of all the banks have the forms for the Atal Pension Yojana scheme. The application form has to be completely filled 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 informed by SMS on his/her registered mobile number.
How to Open APY Account Online Using Aadhaar
according to a circular EAPY By NPS Trust, here is how one can open APY through Aadhaar without visiting the branch.
The process flow of EAPY registration and workflow at the end of APY-SP 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 it is required at the time of registration
As per the circular dated April 21, 2022, customers opting for EAPY as a mode of registration need to ensure the following:
One. The demographic information provided at the time of registration through e-APY using e-KYC/XML matches with the information available in bank records.
b. The SB account should have sufficient balance between Rs.1000 to Rs.5000 as per the choice of pension for the first installment of APY contribution.
C. The APY account got activated after authentication of the information received from Aadhaar such as name and date of birth.
D. Online registrations rejected by the respective banks, those subscribers with reasons for rejection are advised to resubmit their requests after rectification.
Tax Benefits of APY
Atal Pension Yojana contribution can be deducted under section 80CCD(1B) up to Rs. 50,000 per annum in addition to Rs. 1,50,000 under section 80C, in addition to pension benefits.
Any person having a bank account is eligible for the Atal Pension Yojana scheme. The amount of individual’s monthly, quarterly or half-yearly contribution will be automatically deducted from their bank account.