How can I Close Atal Pension Yojana (APY) account?
The Atal Pension Yojana launched by PM Narendra Modi is a social security scheme targeted towards those people who are:
- People who work in unorganized sectors of Indian economy.
- People who do not have access to any pension scheme or any other social security scheme available in the nation.
- Non-tax payers, i.e. people who do not pay taxes.
Under this scheme, people are required to pay a monthly amount towards Atal Pension Yojana account and after a certain pre-calculated time frame, he or she will receive a guaranteed monthly pension.
Now, the initial release of this scheme had some stringent conditions like:
- Once enrolled, there is no scope for premature exit from the scheme just because a person wants to exit.
- Premature exit was allowed only and only if the person paying for the scheme suddenly died or gets bed ridden because of a terminal or critical illness.
- In event of the death of the pensioner before he or she reaches 60 years of age, the money deposited and the interest earned would be paid to the nominee.
- In event of any critical or even terminal illness, money will be paid out to the person for covering medical expenses. Again, the deposited amount and the earned interest amount will be paid out.
Modified conditions for premature closing of APY account
The latest revisions of APY has introduced additional clauses for prematurely closing APY account apart from the one that already existed.
- Death or unforeseen illness (critical or terminal) will allow premature closing of APY account.
- Voluntary exit is allowed. A person may wish to close the account prior to the attaining of 60 years of maturity age limit. If a person wishes to do so, the following conditions will hold:
- Money deposited by the person and the interest earned on the deposited money will be refunded.
- The refund will however be made after deducting all charges for maintaining the account.
- The person will not be entitled to get the money contributed by government. This government contribution will also be deducted from the account balance.
- Also, the interest earned on the money contributed by government will be deducted from the account balance before making the final settlement on the account.
The renewed terms and conditions are far more flexible and pro-user. Any scheme or policy directed towards citizens which involves money should have flexible terms of exit or better put, flexible exit policy.
In order to close the account, a person needs to approach the bank branch where he or she opened the account in the first place and notify that he or she wants to discontinue with the APY scheme. Following the declaration, he or she will be provided a form. Submission of the completed form will be followed by due diligence from bank’s end the amount will be credited to the person’s savings bank account.
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