The Union Cabinet has approved doubling of investment limit from Rs 7.5 lakh to Rs 15 lakh under Pradhan Mantri Vaya Vandana Yojana (PMVVY). It also extended time limits for subscription from ay 2018 to March, 2020.
These decisions were taken as part of Government commitment to financial inclusion and social security. It will boost social security initiatives for senior citizens and enable them upto Rs.10,000 pension per month.
Pradhan Mantri Vaya Vandana Yojana (PMVVY)
PMVVY aims to provide social security during old age and protect elderly persons aged 60 years and above against a future fall in their interest income due to uncertain market conditions. It is implemented through Life Insurance Corporation of India (LIC). The intended beneficiaries of the scheme are elderly persons aged 60 years and above.
The scheme provides an assured pension based on a guaranteed rate of return of 8% per annum for ten years, with an option to opt for pension on monthly, quarterly or half yearly and annual basis. The differential return, i.e. difference between return generated by LIC and assured return of 8% per annum is borne by Government as subsidy on annual basis.