LIC Current Affairs - 2020

Govt. makes Aadhaar mandatory for PMVKY subscribers

Centre government has made Aadhaar (the unique 12-digit biometric identity number) mandatory for subscribers of Pradhan Mantri Vaya Vandana Yojana (PMVVY) which is a pension scheme for senior citizens. Finance Ministry notified that an individual eligible for receiving benefit under PMVVY scheme shall now be required to furnish proof of possession of Aadhaar number or else undergo Aadhaar authentication.

Key Highlights

Union Ministry of Finance, has issued the notification under Aadhaar (Targeted Delivery of Financial and Other Subsidies, Benefits and Services) Act, 2016. It further reads that any individual desirous of availing benefit under PMVVY scheme who does not possess Aadhaar number or has not yet been enrolled for Aadhaar, shall be required to apply for Aadhaar enrolment before registering for scheme.

In cases where scheme beneficiaries Aadhaar authentication fails due to poor biometrics- the Department of Financial Services (under Finance Ministry) through its implementing agency will make provisions to help beneficiaries get Aadhaar number.

In cases where biometric or Aadhaar OTP (one-time password) authentication is not possible, benefit under PMVVY scheme may be given on basis of physical Aadhaar letter whose authenticity may be verified through unique quick response (QR) code printed on Aadhaar letter.

About Pradhan Mantri Vaya Vandana Yojana (PMVVY)

It is a pension scheme for senior citizens aged 60 or above. The scheme envisages an assured rate of return of 8% annually for 10 years. It is s being implemented through Life Insurance Corporation of India (LIC). PMVVY was announced in Union Budgets of 2017-18 and 2018-19, and in Budget 2018-19, the maximum limit under PMVVY was doubled to Rs.15 lakh per senior citizen. PMVVY is available for subscription till March 2020.

All about PM Kisan Maan Dhan Yojana

Union Ministry of Agriculture & Farmers Welfare has rolled out registration for the PM Kisan Maan Dhan Yojana to provide old age pension cover to farmers. It is new Central Sector Scheme envisioned with an aim to improve life of small and marginal farmers of the country. It is first of its kind pension coverage scheme since independence that s has been envisioned for farmers.

Key Features of Scheme

Intended Beneficiaries: It is voluntary and contributory for small and marginal farmer in entry age group of 18 to 40 years and whose cultivable land is 2 hectares or less.

Benefits: Beneficiaries on attaining the age of 60 years will get monthly fixed pension of Rs. 3000.

Contributions: Beneficiary farmers are required to make monthly contribution of Rs.55 to Rs.200, depending on their age of entry, in Pension Fund till they reach the retirement date i.e. the age of 60 years. Central Government will also equal contribute as contributed by the eligible farmer to Pension Fund. Farmers can opt to allow his/her monthly contribution to this scheme to be made from his benefits drawn from PM-KISAN Scheme directly. Spouse of farmer is also eligible to get separate pension of Rs.3000 upon making separate contributions to this pension fund.

Implementing agency: Life Insurance Corporation of India (LIC) will be Pension Fund Manager and also responsible for Pension pay out to farmers.

Transferability: In case of death of beneficiary farmer before retirement date, the spouse may continue in scheme by paying remaining contributions till remaining age of the deceased farmer. If spouse does not wish to continue, then total contribution made by farmer along with interest will be paid to spouse. If there is no spouse, then total contribution along with interest will be paid to nominee. If the farmer dies after retirement date, the spouse will receive 50% of fixed pension as Family Pension. After death of both the farmer and the spouse, accumulated corpus will be credited back to Pension Fund.

Exit: The beneficiary farmers may opt voluntarily to exit from this scheme after minimum period of 5 years of regular contributions. On exit, their entire contribution will be returned by LIC with interest equivalent to prevailing saving bank rates.