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NEW changes in NPS-APY schemes; Good news for central employees and pension scheme subscribers

Under the new rule, income tax payers will no longer be able to apply for Atal Pension Yojana (APY). This rule will be applicable from October 1, 2022.

New Delhi: Now the subscribers of National Pension Scheme (NPS) and Atal Pension Yojana (APY) can use UPI (Unified Payment Interface) to pay their part of premium in both schemes. The new rules will be applicable from 1 October, 2022. Until now, subscribers have the options of RTGS/NEFT/IMGS to pay the subscription fee. Government in its new notification has increased the options by allowing UPI payment system for subscription payment. It is to be noted that Government is promoting UPI payment system for digital economy.

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Benefits of paying premium before 9:30 in the morning

If you pay the premium of NPS/APY before 9:30 in the morning, then it will be counted the investment of the same day. However, it will be considered for the next day if the payment comes after 9:30.

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National Pension Scheme (NPS)

NPS was launched in 2004 for central government employees except armed forces to provide social security. It is applicable for those who joined the service after 1 January, 2004. In May 2009, Government expanded its range to include private sector and unorganised sector on a voluntary basis.

Atal Pension Yojana (APY)

APY was launched for the employees in unorganised sector. The subscribers get monthly pension of between Rs 1000 to Rs 5000 after attaining the age of 60. It is a voluntary scheme. Crores of people have been linked with these two schemes. UPI payment option will ease the facilitation of subscription payment for subscribers.

New rule from 1 October by Finance Ministry

A notification has also been issued by the Finance Ministry regarding this change. Under the new rule, income tax payers will no longer be able to apply for Atal Pension Yojana (APY). According to the notification of the Ministry of Finance, this rule will be applicable from October 1, 2022. After this, any person who is an income tax payer according to the Income Tax Act cannot apply.