Auto-Debit Contribution Paused On Atal Pension Yojana

Amid the COVID-19 crisis, the Pension Fund Regulatory and Development Authority (PFRDA) has decided to pause the auto-debit facility for contributions towards Atal Pension Yojana (APY). Consequently, contributions towards the pension scheme will not be auto-debited from accounts of subscribers till 30 June 2020.

"The outbreak of COVID-19 pandemic has impacted adversely to all the sections of the society, however, it is known fact that the disadvantaged and poor are most vulnerable to the economic effects of the said disease," the retirement body said in its circular.

"Therefore, it has been decided by the competent authority to stop auto-debiting savings account of the subscribers for APY contribution till 30th June 2020. Also, no penal interest will be charged to the APY subscribers if they regularize their APY accounts by depositing such non-deducted APY contributions along with regular APY contributions between 1st July, 20th and 30th Sept, 20," it added.

The PFRDA has advised all APY service providers (SPs) to stop auto-debiting the savings account of its subscribers towards scheme contribution with immediate effect till 30 June 2020.

It will inform of the modalities of payment of these non-deducted APY contributions along with regular contributions in due course.

The APY is a government-backed pension scheme, primarily targeted at the unorganised sector. Subscribers can make their contributions to the scheme on a monthly, quarterly or half-yearly basis and the auto-debit facility is optional.