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Difference between Atal Pension Yojna, Pradhan Mantri Pension Yojna and National Pension Scheme

Atal Pension Yojana
(launched on 1 June 2015)
(open for all workers in the unorganised sector; subscribers of Swavalamban scheme can migrate to APY)
(launched on 4 May 2017)
(Government-subsidised pension scheme)
National Pension Scheme
(Launched on 1 January 2004)
(Open for all Indian citizens from May 2009; Government sponsored pension scheme)
Minimum entry age is 18 years. Minimum entry age is 60 years. Minimum entry age is 18 years.
Maximum entry age is 40 years.      

There is no maximum entry age limit

Maximum entry age is 65 years.

Minimum amount of pension option is Rs 1,000 per month.    Minimum amount of pension is Rs 1,000  per month, or Rs 3,000 per quarter, or Rs 6,000 per half-year, or Rs 12,000 per annum. Minimum contribution required per annual year is INR 1,000 for Tier 1. There is no minimum contribution required per year if you have a Tier 2 account. You just need to make sure that you have INR 2,000 at the end of the year.
Maximum amount of pension is Rs 5,000 per month.   Maximum amount of pension is Rs 60,000 per year with three options on M/Q/HY basis. The minimum and maximum amount of pension depends on the amount of corpus accumulated at the time of the scheme's maturity
It is primarily meant for those working in the unorganised sector. It is primarily meant for senior citizens who are 60 or above 60 years of age. It is meant for all Indians or NRIs with Indian citizenship (only) who want to secure their future.
The maximum pension amount corpus is Rs 850,000, from which one will receive pension contribution of Rs 5,000 per month (there are no Q/HY/Y options). The  maximum  pension amount  available is Rs 60,000  per year  with M/Q/HY  options, on a maximum purchase price of Rs 750,000 (which is the corpus amount). There is no maximum pension amount available per year
The benefit of minimum pension will be guaranteed by the government of India. It  provides  for 8 per  cent guaranteed  returns (8.30 per cent annualised) per annum. NPS offers no guaranteed returns as they are market-linked and can vary considerably.
Premium  amount paid  can be claimed under Section 80CCD. Current limit for 80CCD tax exemption is Rs 50,000. Assignment  facility is  available only  favouring LIC for obtaining a loan. When a person invests in Tier 1 NPS, a person can get tax benefits of up to INR 2 lakhs per annum. As per section 80C of the Income-tax Act, 1961, deduction amounting to INR 1.5 lakh under NPS is covered. A person can also be eligible to get an additional tax deduction of INR 50,000 as per section 80CCD(1B).
Assignment facility is not available. This scheme is open for subscription only for one year. This scheme is open for all Indian citizens and NRIs (without any other visa)
This scheme is available throughout the year.  

This is at present a close-ended scheme and the term (period of contribution) is for 10 years.


You can sign up for it anytime.

This is an open-ended scheme.  

This scheme has three benefits - pension/survival benefit, maturity benefit and death benefit.

This scheme is beneficial because it offers income for old people, reasonable returns, tax benefits and security cushion to the elderly.
No optional benefits are available.   


So, poor people can avail the Atal Pension Yojana whereas the Prime Minister Pension Scheme guarantees a nice nest egg for senior citizens.

Any person who can afford to pay INR 1000 annually to keep the NPS account active can sign up for it.


Divya Patwal


1 Comment

  1. Vinod
    July 31, 2018

    policy yr of pmpy

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