We tell you the steps to close APY (Atal Pension Yojana) account and the refund details in case of premature exit
07-Feb-2023 •Ravi Banagere
How to close APY account and get back all amount - Pradip Chavan
Atal Pension Yojana (APY) is a government-backed scheme that provides a fixed pension to those working in the unorganised sector and do not currently get a regular pension. The amount of pension depends on the age and the amount of contribution that one chooses to make to the scheme. Even though it's a pension plan, there is the option to close the APY account prematurely (i.e., before the subscriber attains 60 years of age).
Steps to close an APY account
Early exit from Atal Pension Yojana scheme was previously only permitted in cases of terminal illness or demise of the subscriber. Later on, voluntary withdrawal from APY was allowed.
Deductions
When you make a premature exit from APY before the age of 60 years, there can be certain deductions.
In case of voluntary exit from APY
When you make a voluntary exit from APY before attaining 60 years of age, you will be refunded only the contributions made by you to APY along with the returns thereon, after the deduction of account maintenance charges, investment management charges, etc. The government co-contribution, if any, and the accrued income earned on the government co-contribution will not be given to you.
In case of exit due to terminal illness/death
However, there are no deductions in case the account is closed due to terminal illness or the death of the subscriber. The accumulated corpus (subscriber contribution, government contribution and the returns thereon) in the subscriber's account will be returned to the subscriber.
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