The Pradhan Mantri Vaya Vandana Yojana was launched by the Government on 4th May 2017. This is a government pension scheme with an aim to provide social security to senior citizens and for the protection of the elderly against a fall in the interest income due to unfavourable market conditions in the future. This pension scheme can be availed before 31st March 2020 by senior citizens aged 60 years or above.
Some of the highlights of Pradhan Mantri Vaya Vandana Yojana have been discussed in the table below:
|Pradhan Mantri Vaya Vandana Yojana|
|Date of launching||4th May 2017|
|Department||Department of Financial Services, Government of India|
|Government Ministry||Ministry of Finance|
|Activation Period||4th May 2017 to 31st March 2020|
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Pradhan Mantri Vaya Vandana Yojana (PMVVY) is an important topic for the IAS Exam. Candidates can also download the notes PDF at the end of this article.
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Benefits of Pradhan Mantri Vaya Vandana Yojana
Pradhan Mantri Vaya Vandana Yojana (PMVVY) was launched as a government pension scheme for senior citizens which is managed and operated by Life Insurance Corporation (LIC). Some of the major benefits of the scheme are mentioned below:
- The scheme provides an assured return of 8% p.a. payable monthly and is exempted from service tax/GST.
- The scheme offers loan up to 75% of the purchase price after 3 policy years
- The scheme also allows for premature exit for the treatment of any critical/ terminal illness of self or spouse. On such a premature exit, 98% of the Purchase Price shall be refunded.
- If the pensioner dies during the policy term of 10 years, the benefits of the scheme can be availed by the nominee or the beneficiary.
- The benefits of the scheme are overall applicable to the pensioner, his/her spouse and dependents.
Eligibility of Pradhan Mantri Vaya Vandana Yojana
Any individual must fulfil the following criteria for being eligible under Pradhan Mantri Vaya Vandana Yojana:
- He/she should be 60 years or above to be eligible for the scheme.
- The policy term should be of 10 years.
- Investment limit should be Rs. 15 lakh per senior citizen.
- The minimum pension should be Rs. 1,000/- per month and should not be more than Rs. 10,000/- per month.
The Pradhan Mantri Vaya Vandana Yojana like any other government schemes forms an important part of the UPSC syllabus. Candidates should follow the latest developments in Current Affairs related to other government schemes for their UPSC 2021 preparation.
Pradhan Mantri Vaya Vandana Yojana (UPSC Notes) – Download PDF Here