The government has simplified norms for its social security scheme Atal Pension Yojana (APY), so as to enlarge the reach among informal sector workers. Following the simplification of norms, subscribers now have an option to make the contribution on a monthly, quarterly or half yearly basis instead of on a monthly basis earlier.
Furthermore, the penalty on delayed payment has been reduced to Re 1 per month for contribution of Rs 100 for each delayed monthly payment instead of different slabs given earlier. Also, premature exit from the scheme before sixty years of age was not permitted earlier except in exceptional circumstances, which is in the event of the death of the beneficiary or terminal disease. Now the modified provision allows the subscriber to voluntarily exit with the condition that they will only be refunded the contributions made to APY, along with the net actual interest earned on contributions and the government co-contribution, and the interest earned on the Government co-contribution, shall not be returned to such subscribers.
According to modification, discontinuation of payment of contribution provision has been substantially modified in favour of the subscriber. The account will not be deactivated and closed till the account balance with self-contributions minus the government co-contributions becomes zero on account of deduction of account maintenance charges and fees.
On May 9, 2015, the Prime Minister Narendra Modi had launched the Atal Pension Yojana. Under the scheme, the subscriber, who must be in the age group of 18-40 years, will receive the fixed pension in the range Rs 1,000-Rs 5,000 per month after attaining the age of 60 years, depending on contribution which will vary at the age of joining.