How to Close APY Account: Steps & Document Required | 5paisa (2024)

The Atal Pension Yojana (APY), a government-backed initiative, provides a predetermined pension to individuals employed in the unorganised sector who are not entitled to a regular pension. APY's pension amount is determined by the contributor's age and contribution level, making it ideal for providing financial stability throughout the post-retirement phase.

Along with financial security in old age, the initiative offers other several advantages and one of them is the permission to premature closure of accounts, giving members flexibility. The option of premature withdrawal allows subscribers to exit the scheme before reaching the age of 60, the stipulated retirement age. This unique function addresses unanticipated events or changes in financial obligations that may compel the scheme's early termination.

If you are a member of this scheme and wondering how to close Atal Pension Yojana account, here’s a helping hand for you. In this guide, we will explore the steps and requirements involved in closing an APY account, empowering you with the knowledge needed to make informed decisions about your financial future.

How to Withdraw from Atal Pension Yojana Account?

Withdrawing from an Atal Pension Yojana account involves specific steps and adherence to guidelines set by the scheme. Here's a comprehensive guide on how to initiate a withdrawal from your APY account:

1. Eligibility Check
Before proceeding with a withdrawal, affirm that you fulfil the APY standards for premature closure. Common possibilities include the account holder's death or catastrophic illness.

2. Visit the Bank Branch
To begin the withdrawal process, visit the bank branch where you hold your APY account. Carry essential documents such as your APY account details, identification proof, and any supporting documents related to the reason for withdrawal.

3. Fill out the Withdrawal Form
Obtain the Atal Pension Yojana withdrawal form from the bank and fill out the essential information. Provide accurate details, notably your account number, personal details, and the reason for the premature closure.

4. Submit Documents
Submit the completed withdrawal form to the bank personnel with the required documents. Commonly required documents include a medical certificate in case of critical illness or a death certificate in case of the account holder's demise.

5. Verification
The bank will verify the submitted documents and process the withdrawal request accordingly. Ensure all details are accurate to avoid any delays in the verification process.

6. Account Closure
Following the completion of the verification process, the bank will close your APY account. The remaining amount will be paid out under the rules following the deduction of any applicable costs.

7. Receive Acknowledgment
Obtain an acknowledgment or receipt for your withdrawal request. This document may be used as proof of closure and preserved for future reference.

It's important to remember that premature withdrawals from APY may be subject to restrictions and incur fees. Therefore, before beginning the withdrawal procedure, it is advised to carefully read the terms and conditions and contact bank representatives for precise advice.

How to Close APY Account Online

Not just through an offline method, you may also close your account by using online mode. Here’s a step-by-step guide that will aid you in how to close APY account online:

• To begin, visit the official Atal Pension Yojana website or the website of your bank where you have the APY account.
• Log in using your APY account credentials.
• Look for a section related to withdrawal, closure, or account management. There might be specific tabs or options for managing your APY account.
• Complete the online closure form with the necessary details.
• Attach the documents such as identification proof, medical certificate (if applicable), and other relevant documents depending on the reason for closure.
• Review the information you provided, verify the details, and confirm the closure request.
• After submission, you should receive a confirmation of your closure request. Keep details of this confirmation for future reference.

Documents to Submit When Closing Your APY Account

When closing an APY account, several documents are typically required to facilitate the process. The specific documents may vary slightly based on the reason for closure, such as the account holder's demise or critical illness. Here's a general list of documents you may need to submit when closing your APY account:

• Atal Pension Yojana withdrawal form
• Identification proof (Aadhaar card, PAN card, passport, or voter ID)
• Medical certificate (if applicable)
• Death certificate (if applicable)
• Bank account details
• Address proof (utility bill, Aadhaar card, rent agreement, or any government-issued document with your current address)
• APY account passbook
• Acknowledgment of contribution (if available, include the acknowledgment or receipt of your APY contributions).

Steps to Exit from the APY Scheme

Here are the details about exit approaches on how to close Atal Pension Yojana account:

1. Exit Upon Subscriber's Death

• Close the APY Account
If a beneficiary dies before the age of 60, the spouse or nominee may choose to close the APY account. Upon closure, the spouse receives the accumulated corpus. If the spouse is unavailable, the nominee receives the pension amount.

• Continue the APY Account
Alternatively, the spouse has the option to continue the APY account in their name. The spouse continues to receive the same pension amount as the original beneficiary until their demise.

2. Voluntary Exit
Subscribers can opt out of the Atal Pension Yojana on their own terms. Upon voluntary withdrawal, the government compensates the accumulated contributions and interest generated over the years. However, co-contributions from the government are not relevant in the event of voluntary departure.

Subscribers who leave owing to specific diseases may receive government payments in addition to their accrued corpus.

3. Exit Due to Illness
In the event of certain diseases, subscribers may choose to withdraw from the Atal Pension Yojana. In these situations, the government pays the subscriber's bank account back the total pension corpus, which includes government payments and returns.

4. Monthly Pension Withdrawal at 60 Years
Subscribers who have reached 60 years of age can request monthly pension withdrawals from the bank where the APY account was opened. The monthly pension is determined based on the returns, providing higher returns for a correspondingly higher monthly pension.

Exit Guidelines of Atal Pension Yojana Account

If you are thinking about how to close my APY account online, you must be aware of certain situations under which this step can be taken:

• Your age must be 60 years as per the documents provided while opening an APY account.
• In case of an unfortunate event of your death before 60 years, the account could be closed.
• If you wish to take voluntary exit from the scheme before turning 60. However, it is only allowed in exceptional cases like serious illness or death.

Conclusion

In conclusion, the Atal Pension Yojana serves as a crucial government initiative providing financial security. The flexibility of premature closure adds an extra layer of adaptability to address unforeseen circ*mstances. However, it's imperative to grasp the guidelines and potential fees associated with premature withdrawals. Overall, APY stands as a valuable tool in securing a stable retirement.