How to Close Atal Pension Yojana (APY) Account & Withdraw Balance?

Source: tosshub

Atal Pension Yojana is a social security scheme offering pensions to workers of an unorganised sector. It encourages eligible beneficiaries to make monthly contributions to secure their post-retirement phase of life.

Existing subscribers can also request premature withdrawal of Atal Pension Yojana based on specific scenarios. According to guidelines, an APY exit policy involves closing a subscriber's APY account.

If you are an existing beneficiary and want to know how to close the Atal Pension Yojana scheme, this article will guide you on doing the same.

This article will guide you through closing the Atal Pension Yojana scheme if you are an existing beneficiary.

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Step 1: Visit the official website of NPS CRA.

Step 2: Select the option ‘NPS Lite/APY and choose ‘Atal Pension Yojana’. Select "Forms" and choose the "Withdrawal and Continuation" section.

Step 3: Download "APY Death & Spouse Continuation" or "Voluntary Exit APY Withdrawal Form" as per your requirement.

Step 4: Fill in the form with relevant information like PRAN, name, etc. In case of voluntary exit, you must mention the right reasons. It includes:

• Unable to pay the contribution

• Require funds urgently

• Else, specify reasons for other situations, etc.

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Step 5: Submit your form to the bank officials along with the supporting documents. Once you know the Atal Pension Yojana closure process, note the following documents that you must keep ready.

Follow these steps in order to exit the scheme successfully:

Step 1: First, go to the bank at which you have an Atal Pension Yojana account.

Step 2: Fill in the Atal Pension Yojana cancellation form with relevant information.

Step 3: Submit the duly signed form to the bank. Then, wait for the verification of your application.

Step 4: Upon completing the process, your amount and interest will then be credited to your linked bank account. You will also get a notification from the bank on your registered mobile number.

Also, don't forget to collect your duly stamped acknowledgement receipt from the bank.

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So, end your search for "how to close Atal Pension Yojana account" on the internet. Keep all these pointers in mind.

Disclaimer: Currently, the facility for an online closure of Atal Pension Yojana account is not available on the portal. However, you can download the APY closure form the NSDL website.

If a beneficiary dies before 60, the spouse must carry the following documents while applying for premature withdrawal:

• Beneficiary's original death certificate.
• Bank details and KYC of the spouse or nominee.
• Relationship proof certificate. It may include a legal heir certificate or a copy of a family member's certificate given by the Executive Magistrate. It is valid only when a claimant submits a closure request other than spouse and nominee.

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Step 1: Go to the official website of NPS CRA.

Step 2: Click on the option for ‘NPS Lite/APY’ and then select ‘Atal Pension Yojana’. Navigate to the "Forms" section and choose the "Withdrawal and Continuation" category.

Step 3: Download either the "APY Death & Spouse Continuation" form or the "Voluntary Exit APY Withdrawal Form" based on your specific needs.

Are you aware of the Atal Pension Yojana exit policy?

If not, take a note of the following situations where you can close your account.

• You have attained 60 years of age.
• A subscriber dies before he/she turns 60 years old.
• If you voluntarily exit from an account before attaining 60 years of age. It is valid only in exceptional situations like specified illness or death.

To know about the exit policy of Atal Pension Yojana, keep reading.

Subscriber's Death

Upon the death of a beneficiary before 60 years of age, here are the two options one can follow:

Close the APY Account

If the spouse is keen to close the APY account, he/she will get the accumulated corpus. In case a spouse is not present, the nominee will get the pension amount.

Continue the APY Account

If the spouse wants to continue the APY account, one can maintain the account in his/her name. The spouse will get the same amount as that of the beneficiary until death.

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Voluntary Exit

The scheme offers flexibility in providing a voluntary exit from this scheme. In this case, the Government will only refund your accumulated contributions and earned interest over the years. You are not eligible to get the Government co-contributions in case of voluntary withdrawal.

For exit due to specified illness , you can get the Government contributions as well.

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Exit Due to Illness

You can withdraw from this scheme based on specified illness. Accordingly, the Government will refund your accumulated pension corpus to your bank account along with the Government contribution and returns thereon.

Furthermore, the subscriber can withdraw the monthly pension by requesting the bank where he or she opened the APY account if he or she has become 60 years old. In case of higher returns, the subscriber will receive higher monthly pension.

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Are you searching for "how to stop an Atal Pension Yojana account in case of illnesses?" Check out the illnesses under which you can apply for APY withdrawal:

• Kidney failure
• Major organ transplant
• Coronary artery bypass
• Heart valve surgery
• Stroke
• Myocardial infarction
• Coma
• Paralysis
• Complete blindness
• Life-threatening accidents 
• Multiple sclerosis
• Aorta graft surgery
• Cancer
• Primary pulmonary arterial hypertension, etc.
• Any other critical illness of a life threatening nature specified by the related authority through circulars, guidelines or notifications.

These illnesses are specified in Exits and Withdrawal under the National Pension System Regulations 2015. It is advisable to keep an eye on this list. The Pension Fund Regulatory and Development Authority updates the critical illnesses from time to time.

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Now that you know how to close Atal Pension Yojana account, remember that financial experts suggest otherwise except for an emergency. It leads to inadequate savings for the future due to the sudden closure of contributions. Hence, consult with a financial advisor to make an informed decision.

The scheme offers flexibility in providing a voluntary exit from this scheme. In this case, the Government will only refund your accumulated contributions and earned interest over the years. You are not eligible to get the Government co-contributions in case of voluntary withdrawal.

For exit due to specified illness , you can get the Government contributions as well.

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You can withdraw from this scheme based on specified illness. Accordingly, the Government will refund your accumulated pension corpus to your bank account along with the Government contribution and returns thereon.

Furthermore, the subscriber can withdraw the monthly pension by requesting the bank where he or she opened the APY account if he or she has become 60 years old. In case of higher returns, the subscriber will receive higher monthly pension.

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Now that you know how to close Atal Pension Yojana account, remember that financial experts suggest otherwise except for an emergency. It leads to inadequate savings for the future due to the sudden closure of contributions. Hence, consult with a financial advisor to make an informed decision.