How Can I Close Atal Pension Yojana Account?
Since its launch, the Atal Pension Yojana of the Central Government of India stirred up the whole nation. People began asking whether to open an account or not. People also asked, how to close an account under APY. Initially it was absolutely not possible to close an APY account once it was opened. However, after a round of criticisms and under increasing demand for the same, the government decided to modify the terms and conditions of the scheme and incorporated the option for premature account closure.
Initially under APY, a person who enrolled for the APY Yojana was required to carry on with payments until he or she reached the retirement age, which was determined to be 60 years. However, with modified terms and conditions, a person, if he or she wishes to, can apply for closure of the account long before attaining that age.
How Can I Close APY Account?
So, if you have been pondering over this question: “How Can I Close APY Account?”, here is how you need to proceed:
- Walk up to the bank where you opened your APY account.
- Ask for APY account closure form. Fill in the form properly with all necessary details and submit the form.
- Return home and wait.
The bank will process your account closure form and will refund the money you deposited under APY to you provided savings account number. You will get a notification when the money from your APY account hits your preferred savings bank account.
Once the bank processes the closure application form, here is what the bank will do:
- Bank will first calculate the amount of money you have contributed to your account and the amount of money that has been contributed by the government.
- Bank will then calculate the amount of interest earned by your deposited money and the interest earned by government’s deposited money.
- Once these calculations are done, the bank will set aside the government contribution and the interest earned on government’s contribution.
- Once that amount is separated, the remaining amount is your money (which includes the amount you deposited and the interest earned by that deposited amount).
- Once the bank has calculated the money it owes to you, the bank will then calculate the amount of money that has been spent on maintaining your account under APY. This maintenance amount will be deducted from your money (your deposited amount and your interest earnings).
- The remaining balance will be refunded to your savings bank account and you will be notified that your APY account has been closed.
The aforementioned procedure is known as voluntary exit. However, there is another condition under which your APY account will be closed prematurely. This is known as involuntary exit. What happens here?
Well, under involuntary exit, there will be two conditions under which premature account closure is allowed:
- You suddenly fall ill and it is not just any illness. You need to be critically ill or terminally ill. In either case, a huge amount of money is required for medical expenses. If you can show proper evidence of the same, the account will be closed. However, the process followed by the bank for closing the account will be exactly the same as described earlier.
- In case of unforeseen death, APY account is closed. One of the family members of the APY account holder needs to provide the details of death to the bank and the bank will carry forward the necessary actions and refund the money, which will include both the amount deposited by the account holder and the amount of interest earned by the deposited amount.
That’s all! There are no further steps to follow. It is pretty simple but the only problem is that in case you want to close your APY account, you will have physically visit the bank branch. There is online option available.