Atal Pension Yojana Penalty
The Atal Pension Yojana aims at financially securing the people working in the unorganized sector in their old age. Most workers in the unorganized sector are not able to save enough for their future and so becomes helpless after retiring from work. The Atal Pension Yojana is launched to help such people.
The Atal Pension Yojana urges workers of the unorganized sector to invest for their future and promises a return once they turn the age of 60. Any Indian citizen having a bank account can avail the benefit of this scheme. The contribution of the citizen towards the pension is directly debited from his/her bank account and later the pension of the citizen gets credited to that account only.
However, there are certain penalties under the Atal Pension Yojana charged for not paying the monthly contributions on time. In such case, the bank can charge an extra amount to the scheme holder. This amount can vary from a minimum of Re. 1 per month to a maximum of Rs. 10 per month depending on the contribution of the scheme holder.
For example, people investing upto Rs.100 per month, would have to pay Re.1 as penalty. Those investing between Rs. 101 to 500 per month will have to pay an additional Rs. 2 per month. For contributions between Rs. 501 to 1000 per month, an amount of Rs. 5 per month in charged additionally, and for contributions that are beyond Rs. 1001 per month, a penalty of Rs. 10 per month is deducted.
Moreover, if the contributor delays the monthly payment continuously, he/she might be levied heavy penalty. In case the account holder pays late payment continuously for six months, the account gets frozen. If the account holder discontinues to pay the monthly payment for 12 months, the bank then deactivates his/her account. Moreover if it continues for 24 months, the account is closed permanently.
Furthermore, if by using false proof someone takes benefit of the scheme, he/she will be charged a penalty and the government contribution will be discontinued.