The Atal Pension Yojana (APY) was launched by the Prime Minister Shri Narendra Modi at Kolkata on 9th May, 2015.  APY provides a minimum guaranteed pension of ₹ 1000 per month or ₹ 2000 per month or ₹ 3000 per month or ₹ 4000 per month or ₹ 5000 per month, at the age group of 18-40 years.

Certain suggestions have been received, including from the State Governments, regarding providing certain relaxations for informal sector workers, having intermittent incomes, from the provision of mandatory monthly contributions under the scheme of APY and also removing the penal provisions for non-contribution under APY to make the Scheme more viable.  The matter has been examined and the necessary revisions have been made in APY to increase the acceptability of the scheme amongst informal sector workers.

The modified provisions carried out in the scheme are as under:

• The individual subscribers shall have an option to make the contribution on a monthly, quarterly, half yearly basis instead  of on a monthly basis earlier
• Discontinuation of payment of contribution provision has been substantially modified in favour of the subscriber.  The account will not be deactivated and closed till the account balance with self-contributions minus the Government co-contributions becomes zero due to deduction of account maintenance charges and fees
• Also the penalty on delayed payment has been simplified to Rs. One (1) per month for contribution of ₹ 100, or part thereof, for each delayed monthly payment instead of different slabs given earlier
• Similarly, premature exit from the scheme before sixty years of age was not permitted earlier except in exceptional circumstances, i.e., in the event of the death of the beneficiary or terminal disease.  Now the modified provision permits the subscriber to voluntarily exit with the condition that –
• he shall only be refunded the contributions made by him to APY, along with the net actual interest earned on his contributions (after deducting the account maintenance charges) and ;
• the Government co-contribution, and the interest earned on the Government co-contribution, shall not be returned to such subscribers

Contribution flexibility expands pension accessibility; periodic payments allowed and exit refunds limited to subscriber contributions. Subscribers may opt for monthly, quarterly or half yearly contributions. Accounts will not be deactivated or closed until the account balance of self contributions minus maintenance charges becomes zero. Delayed payment penalty is simplified to a flat per month amount per delayed monthly contribution. Voluntary premature exit before age sixty is permitted only with refund of the subscriber's own contributions plus net actual interest after charges; Government co contribution and interest on it will not be returned.