The Atal Pension Yojana (APY) is a government-backed pension scheme designed to provide financial security during retirement. Once enrolled, your account stays active until you turn 60 years old. However, there may be situations where you need to close your APY account before maturity.
At Axis Bank, the closure process is straightforward but must follow PFRDA (Pension Fund Regulatory and Development Authority) rules. Here’s a detailed guide to help you through it.
When You Can Close an APY Account
The APY scheme has strict rules, so voluntary exit before 60 years of age is not normally allowed. However, you can close your account under the following circumstances:
- Death of the Subscriber – The nominee or legal heir can claim the corpus.
- Terminal Illness – If the subscriber suffers from a severe illness, early exit may be permitted with proper medical documents.
- Special Circumstances – In rare cases such as change of citizenship or government orders.
⚠ Important: Closing an APY account simply because you don’t want to continue is not allowed under normal rules.
If you just want to stop contributions, you can disable auto-debit, but the account will remain active.
Step-by-Step Process to Close APY at Axis Bank
Step 1: Visit Your Axis Bank Branch
Go to the home branch where your APY account is linked. Carry the following documents:
Aadhaar Card (original + photocopy)
PAN Card (if linked)
Axis Bank passbook or recent account statement
Medical proof (if closing due to terminal illness)
Death certificate (if closure is due to the subscriber’s demise)
Step 2: Request the APY Exit/Closure Form
Ask the branch staff for the APY Closure or Exit Form. This form is mandatory for processing your request.
Fill in accurate details such as:
PRAN (Permanent Retirement Account Number)
Full name and date of birth
Registered mobile number and address
Reason for closure (death, illness, etc.)
Bank account details for refund transfer
Step 3: Submit the Form and Documents
Submit the completed form along with supporting documents. The bank will verify and forward your request to PFRDA for final approval.
Step 4: Refund Processing
Once your closure request is approved:
Your contributed amount, along with any interest, will be credited to your Axis Bank savings account.
The process usually takes 7–15 working days, depending on PFRDA’s approval timeline.
Key Points to Remember
APY closure cannot be done online through the Axis Bank mobile app or internet banking.
Once the account is closed, you cannot reopen the same APY account.
If the subscriber passes away, the nominee receives the final corpus amount.
Stopping contributions without official closure will lead to penalties and may affect your savings account balance due to auto-debit charges.
Sample Application for APY Closure
You may also write a simple application along with the closure form. Here’s an example:
Subject: Request for Closure of APY Account
Dear Sir/Madam,
I am an APY subscriber holding an account with your branch. Due to , I wish to close my APY account. Kindly process the closure and transfer the refund amount to my savings account linked to the scheme.
Details:
Name:
PRAN:
Registered Mobile Number:
Savings Account Number:
I have attached the required documents for your reference. Kindly consider my request and do the needful at the earliest.
Thanking you,
Final Thoughts
Closing an APY account at Axis Bank is a straightforward process if you have a valid reason and the necessary documents. Always ensure that you follow PFRDA guidelines and provide accurate information to avoid delays. If you only wish to stop future payments, consider disabling the auto-debit feature instead of full closure.
By following the above steps carefully, you can complete the APY closure process smoothly and receive your refund without any hassle.
