If your Atal Pension Yojana (APY) account has become inactive due to missed payments or insufficient balance, you can reactivate it and continue your pension contributions. This guide explains the steps to restore your dormant APY account and avoid permanent closure.
Reasons for APY Account Dormancy
Your APY account may become inactive due to:
Missed Contributions: Continuous non-payment for six months leads to account freezing.
Insufficient Balance: If the auto-debit for monthly contributions fails repeatedly.
Non-Compliance with Auto-Debit Mandate: Failure to update standing instructions with your bank.
Steps to Reactivate Your APY Account
If your APY account has been frozen or deactivated, follow these steps to restore it:
1. Check Your APY Account Status
Visit your bank branch where the APY account was opened.
Request an account status check from the bank official.
You can also check the status via internet banking or the NSDL APY portal (if supported by your bank).
2. Ensure Sufficient Balance in Your Account
Deposit the required amount to cover missed contributions and penalties.
Keep additional funds to avoid future payment failures.
3. Submit a Reactivation Request at Your Bank
Request an APY Reactivation Form from the bank.
Fill in your PRAN (Permanent Retirement Account Number), bank account details, and reason for reactivation.
Attach a copy of your Aadhaar card and bank passbook (if required).
4. Pay Pending Dues and Penalties
The bank will calculate the total pending contributions and late penalties.
You must pay the outstanding amount either as a lump sum or in installments (if permitted by your bank).
5. Resume Auto-Debit for Future Contributions
Ensure your bank account has sufficient balance for auto-debits.
Set up or update your standing instructions for APY contributions.
Penalty Charges for Missed Contributions
Missed Contribution Duration
Status of Account
Penalty
Up to 6 months
Account Frozen
Auto-debit reattempted with penalty
6 – 12 months
Account Deactivated
Manual reactivation needed
More than 24 months
Account Closed
Refund issued (excluding govt. contribution)
Important Considerations
Reactivate your account within 12 months to avoid permanent closure.
Late payment penalties are mandatory and vary based on your contribution amount.
If auto-debit fails multiple times, the account may be permanently closed.
Conclusion
Reactivating a dormant APY account ensures continued pension benefits for retirement. By keeping sufficient fundsand monitoring your contributions, you can prevent future account suspension.
