ICICI Bank APY

Home / Glossary / Saving Schemes / ICICI Bank APY

Introduction

The Atal Pension Yojana (APY) is a government-backed pension scheme aimed at providing financial security to workers in the unorganized sector. The scheme ensures a fixed pension for subscribers upon reaching retirement age. ICICI Bank Atal Pension Yojana allows customers to enroll in this scheme easily through their banking services, ensuring long-term financial stability for the weaker sections of society.

Characteristics of the Atal Pension Yojana ICICI

Government-Backed Scheme: The scheme is regulated by the Pension Fund Regulatory and Development Authority (PFRDA) and is supported by the Government of India.
Fixed Pension Benefits: Subscribers can receive fixed monthly pensions ranging from ₹1,000 to ₹5,000, depending on their contribution.
Contribution Based on Age: Younger subscribers pay lower contributions for a higher pension, whereas older individuals need to contribute more.
Auto-Debit Facility: Contributions are automatically deducted from the subscriber’s ICICI Bank savings account.
Government Co-Contribution: For eligible subscribers who enrolled before March 31, 2016, the government co-contributed 50% of the amount (up to ₹1,000 annually) for five years.
Guaranteed Pension Returns: The pension amount is predetermined based on the contribution amount and duration.
Nomination Facility: The scheme allows the subscriber to appoint a nominee who will receive the accumulated pension corpus in case of untimely death.

You may also want to know Pradhan Mantri Vaya Vandana Yojana

Who is Eligible for the Atal Pension Yojana Scheme ICICI?

To enroll in the ICICI Atal Pension Yojana, the applicant must meet the following eligibility criteria:

Age Limit: The applicant must be between 18 to 40 years of age.
Indian Citizen: The applicant must be an Indian citizen with valid KYC documents.
Bank Account Holder: The applicant should have a savings account in ICICI Bank.
Not Covered Under Statutory Social Security Schemes: Individuals who are already benefiting from schemes like EPF (Employees’ Provident Fund) are not eligible for government co-contributions.
Regular Contributions: The subscriber must agree to contribute until the age of 60 years.

Things to Know About the Atal Pension Yojana through ICICI Bank

Auto Debit System: Contributions are auto-debited from the subscriber’s ICICI Bank account every month, quarter, or half-year.
Tax Benefits: Contributions made under APY are eligible for tax deductions under Section 80CCD(1) of the Income Tax Act.
Penalty for Non-Payment: If the account holder fails to make contributions, a penalty is imposed based on the monthly contribution amount.
Exit & Withdrawal: Subscribers can exit the scheme only at the age of 60 or under special circumstances such as death or terminal illness.
APY Contribution Slabs: Contribution amounts vary based on the pension amount chosen and the age of entry into the scheme.

How to Apply for Atal Pension Yojana Online in ICICI Bank?

Online Application Process

Log in to ICICI Bank’s Net Banking

Go to ICICI Bank’s official website and log in to your net banking account.

Navigate to the APY Section

Select the Atal Pension Yojana option under the pension scheme section.

Fill in the Required Details

Enter personal details, nominee details, and pension amount.

Select Contribution Amount & Frequency

Choose your monthly, quarterly, or half-yearly contribution.

Agree to Auto-Debit

Accept the auto-debit facility for regular contributions.

Submit & Receive Confirmation

Submit the form and receive an e-receipt confirming successful enrollment.

Offline Application Process

Visit the ICICI Bank Branch

Collect the Atal Pension Yojana registration form.

Fill Out the Form

Provide KYC details, select the pension amount, and enter nominee details.

Submit the Form with Documents

Attach Aadhaar Card, PAN Card, and bank account details.

Verify and Activate APY Account

The bank will verify your details and activate the account.

You may also want to know HDFC Bank Atal Pension Yojana

Benefits of ICICI Atal Pension Yojana Scheme

Financial Security in Old Age: Ensures a steady pension post-retirement.
Affordable Contributions: Allows flexibility in choosing pension slabs.
Tax Exemptions: Contributions qualify for tax deductions under Section 80CCD.
Hassle-Free Auto Debit: Automatic deductions prevent missed payments.
Flexible Payment Modes: Allows monthly, quarterly, and half-yearly contributions.
Government Support: Government co-contribution was provided for early subscribers.
Nomination Facility: Ensures financial protection for family members.

Conclusion

ICICI Bank offers the Atal Pension Yojana (APY) as a robust pension scheme that ensures financial security for the elderly, especially those in the unorganized sector. With auto-debit facilities, tax benefits, and guaranteed pension returns, this scheme is a prudent investment for individuals planning for retirement. ICICI Bank makes the enrollment process simple and efficient, providing both online and offline application options. By subscribing to APY, individuals can secure their future and gain peace of mind during their retirement years.