Summary In April, the PFRDA had announced that auto-debits from APY subscribers’ bank accounts would be halted till June 30, 2020. The decision was taken as the majority of the subscribers belonged to the lower strata of society and suffered the most during the lockdown.
From July 1, 2020, banks will restart auto-debiting monthly contributions from the accounts of Atal Pension Yojana (APY) subscribers. “As you are aware, vide its circular (Ref. No: PFRDA/2020/8/P&D-APY/1) dated April 11, 2020, Pension Fund Regulatory and Development Authority (PFRDA) had instructed Banks to stop auto-debit of APY contribution till 30th June 2020. Accordingly, auto-debit for APY contributions shall resume from 1st July 2020,” PFRDA stated in email communication to subscribers of the scheme.
Back in April, the PFRDA had announced that auto-debits from APY subscribers’ bank accounts would be halted till June 30, 2020. The decision, PFRDA said, was taken as the majority of the pension scheme subscribers belonged to the lower strata of society and were suffering the most during the coronavirus-induced lockdown.
The latest PFRDA communication also stated that penal interest will not be charged if the subscriber’s pension scheme account is regularised before September 30, 2020. “Penal interest will not be charged if your non-deducted APY Contributions from April-2020 to August-2020 are regularised along with regular APY contributions before 30th September 2020.”
Usually, a penalty is collected by banks for delayed contributions. According to the official APY website, these are the penal charges for delayed contributions:
- Re 1 per month for contribution up to Rs 100 per month;
- Rs 2 per month for contribution between Rs 101 and Rs 500;
- Rs 5 per month for contribution between Rs 501 and Rs 1,000;
- Rs 10 per month for contribution exceeding Rs 1,001.
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