Atal Pension Yojana: How to withdraw money from APY? Here is what you need to know

Atal Pension Yojana (APY) is a pension scheme for the citizens of India, focused on workers in the unorganized sector. Under APY, a guaranteed minimum pension of Rs 1,000 or 2,000 or 3000 or 4000 or 5000 per month at the age of 60 years will be guaranteed depending on the contribution by the subscribers.

If you have an account under the scheme and want to withdraw the money, then here is what you need to know.

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Withdrawal process from APY:

1. On attaining the age of 60 years: Upon completion of 60 years, the subscribers will submit the request to the associated bank for drawing the guaranteed minimum monthly pension or higher monthly pension, if investment returns are higher than the guaranteed returns embedded in APY.

The same amount of monthly pension is payable to spouse (default nominee) upon death of subscriber. Nominee will be eligible for return of pension wealth accumulated till age 60 of the subscriber upon the death of both the subscriber and spouse, as per the information provided by indiapost.gov.in.

2. In case of death of the subscriber due to any cause after the age of 60 years: 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 wealth accumulated till age 60 of the subscriber would be returned to the nominee.

3. Exit before the age of 60 Years: Exit before 60 years of age is generally not permitted, it may be permitted by PFRDA only in exceptional circumstances, i.e., in the event of the death of beneficiary or terminal disease etc., in-line with the provisions for pre-mature exit under NPS.

In case a subscriber, who has availed Government co-contribution under APY, chooses to voluntarily exit APY at a future date, he shall only be refunded the contributions made by him to APY, along with the net actual accrued income earned on his contributions (after deducting the account maintenance charges).

The Government co-contribution, and the accrued income earned on the Government co-contribution, shall not be returned to such subscribers.

4. Death of subscriber before 60 years: The entire accumulated corpus under APY will be returned to the spouse / nominee. However, pension shall not be payable to the spouse / nominee.