Shubham Jaiswal (email@example.com)
Allowing greater flexibility to pension account holders, the Pension Fund Regulatory and Development Authority (PFRDA) has decided to allow Atal Pension Yojana (APY) subscribers to either increase or decrease contribution anytime.
With effect from July 1, PFRDA has asked banks to process requests for change in contribution amount anytime during the year. Earlier, a subscriber was allowed to make the change only once in April.
This arrangement will enable the APY subscribers to increase/decrease their pension plans as per their changed income levels and capacity to pay APY contributions, which is very important to continue contributions in the scheme till 60 years, the regulatory body said in a release.
However, a subscriber can change pension plan only once in a financial year, PFRDA said. From this month, auto-debit of Atal Pension Yojana contributions, stopped till June 30 in the wake of COVID-19 outbreak, has also resumed.
As per current arrangements, if all the pending APY contributions due between April-August, 2020 get auto-debited from savings account of the subscribers, latest by September 30, then no penal interest would be charged to them.
The Atal Pension Yojana was launched by the Government of India in May 2015. This scheme is open to all citizens who are in the age group of 18-40 years. Under the scheme, a subscriber would receive a guaranteed pension of ₹1,000 to ₹5,000 per month after attaining the age of 60 years, depending upon his contributions.