Canara Bank Atal Pension Yojana- All You Need to Know

In a time when planning finances is important for a secure future, Canara Bank has become a major support for retired people through different social security programs. One of the main programs is the Atal Pension Yojana (APY).

In this guide, we’ll discuss the features, eligibility criteria, enrollment process, and contribution details of Canara Bank Atal Pension Yojana.

What is Canara Bank Atal Pension Yojana (APY)?

Canara Bank Atal Pension Yojana (APY) is a government-backed pension scheme offered by Canara Bank, one of India’s leading public sector banks. Launched as part of the broader National Pension System (NPS) initiative, APY aims to provide a sustainable pension to individuals working in the unorganized sector, self-employed individuals, traders, and farmers, who often face challenges in securing financial stability during their retirement years.

Features of Canara Bank Atal Pension Yojana

The features of Canara Bank Atal Pension Yojana (APY) are listed below:

1. One Account Per Person: People can only open one Atal Pension Yojana Scheme Account with Canara Bank.
2. Guaranteed Monthly Pension: The APY ensures a guaranteed monthly pension to subscribers. The pension amount depends on the contribution made and the age at which you join the scheme.
3. Flexible Contribution Options: Subscribers can make contributions on a monthly, quarterly, or half-yearly basis.
4. Tax Benefits: Contributions to the APY are eligible for tax benefits under Section 80CCD of the Income Tax Act. Additionally, the savings earned through the scheme are tax-exempted.
5. Social Security for the Unorganized Sector: The APY scheme provides social security to the poor, underprivileged, and unorganized sector workers. It aims to bridge the gap in pension coverage for those who often don’t receive support from traditional pension systems.
6. Age-Dependent Contribution Chart: The contribution amount varies depending on the subscriber’s age and desired pension amount. The guaranteed monthly pension ranges from Rs. 1,000/—to Rs. 5,000/-.
7. Exit and Annuity Options: Subscribers can exit the APY upon reaching the age of 60 with 100% annuitization of their pension wealth. If the subscriber dies, the pension is available to the spouse. If both the subscriber and spouse pass away, the pension corpus is returned to the nominee.
8. Continuation and Exceptional Circumstances: The scheme allows continuation by the spouse in case of the subscriber’s death. Early exit before age 60 is permitted only in exceptional circumstances, such as terminal illness or beneficiary death.

Eligibility Criteria for Canara Bank APY

To be eligible for Canara Bank’s Atal Pension Yojana (APY), several criteria need to be met:

• Age: You must be between 18 and 40 years old when applying.
• Citizenship: Indian citizenship is mandatory.
• Account: You need to have a savings bank account with Canara Bank or be willing to open one.
• Occupation: The scheme targets those not already covered by a statutory social security scheme. This includes workers in the unorganized sector, self-employed individuals, traders, and agriculturists.
• Income Tax: As of October 1, 2022, income taxpayers are not eligible for new APY accounts. This doesn’t apply to existing subscribers who were enrolled before the change.

Also read, Axis Bank Mudra Loan

How to Enroll in Canara Bank Atal Pension Yojana

The APY enrollment process is designed to be simple and accessible, enabling many to secure their financial future.

1. Visit Canara Bank Branch: Start by visiting a Canara Bank branch to get the Atal Pension Yojana application form, ensuring access for potential subscribers everywhere.
2. Fill out the Application Form: Fill out the form with accurate details including your bank account number and monthly contribution.
3. Submit KYC Documents: Submit relevant KYC documents to verify your identity, ensuring the scheme’s security and preventing fraud.
4. Include Aadhaar Card: If you have an Aadhaar Card, entering the Aadhaar number on the application form is mandatory.
5. Submit to Bank Executive: Give the filled form and documents to a bank executive to start the verification process.
6. Account Activation: After successful verification, your APY account will be activated. You’ll receive account details and confirmation of your enrollment.
7. Monthly Contributions: Your chosen monthly contribution amount will be automatically deducted from your linked savings account on the due date through ECS.

Contributions And Delay Charges

The Atal Pension Yojana (APY), offered by Canara Bank, emphasizes timely contributions from subscribers to build a substantial retirement fund. To ensure consistency, Canara Bank has implemented a structured penalty system for late payments. Here’s how it works:

Conclusion

Canara Bank’s Atal Pension Yojana (APY) offers a simple and effective way to build a retirement corpus and receive a guaranteed monthly income after the age of 60. In this article, I’ve tried to cover every aspect of Canara Bank APY so that it helps those who need financial assistance in their old age.

Frequently Asked Questions (FAQs)