The Life Insurance Corporation of India (LIC) on Monday introduced the revised Pradhan Mantri Vaya Vandana Yojana (PMVVY). The Central Government provides grants for this pension scheme.
- The PMVVY scheme is by the government of India but is being run by LIC
- The Union Cabinet extended PMVVY from 31 March 2020 to the next three years 31 March 2023
- The PMVVY scheme implemented through LIC is aimed at senior citizens
This PMVVY Scheme is a social security scheme and a pension plan. This scheme is by the Government of India but is being run by LIC. The maximum limit to invest under this scheme was earlier seven and a half lakh which has now been increased to 15 lakh rupees.
The revised plan will be available for purchase from Tuesday. The central government has amended the scheme to change the rates for people aged 60 years or more. LIC has the monopoly to run this scheme.
Along with the deadline for investing in this PMVVY Scheme, 2020 was earlier May 3, 2018, which was increased to 31 March 2020. Is given Dear friends, today we are going to provide you all information about Pradhan Mantri Vaya Vandana Yojana 2020 like application process, documents, eligibility, guidelines, etc.
The government has extended the period of Pradhan Mantri Vaya Vandana Yojana (PMVVY) related to the social security of senior citizens for another three years. Also, the annual rate of return was reduced to 7.4 percent. The interest rate was 8 percent in the last financial year.
LIC said in a statement that the revised plan will be available for purchase for three financial years from Tuesday till March 2023. The company said that it can be purchased offline as well as online from its website. The maturity of the scheme is 10 years. In this, a guaranteed return of 7.40 percent will be given in the first year.
According to an official release, the Union Cabinet extended PMVVY from 31 March 2020 to the next three years 31 March 2023. Also, a fixed return rate of 7.40 percent has been fixed for 2020-21 and the rate will be reviewed every year thereafter. The government had extended the plan period to March 2020 with a fixed return of 8 percent in the budget for FY 2018-19. Also, the investment limit was doubled to 1.5 million.
According to the release, according to the revised rate of return of Senior Citizen Savings Scheme (SCSS), the system of annual adjustment in the rate of return with effect from April 1, has been approved. Currently, its maximum limit has been kept at 7.75 percent, but if the limit is broken, the returns in this scheme can be reviewed at any time. Life Insurance Corporation of India is implementing this scheme with the fixed income security of senior citizens.
Guaranteed Minimum Pension
The objective of this scheme is to provide a guaranteed minimum pension to senior citizens (60 years and above) based on the fixed return on the purchase price. The government’s financial accountability is limited to the shortfall between market returns earned by LIC on the investment amount and a 7.4 percent return (guaranteed return).
This arrangement is for 2020-21 and after that the interest rate on this scheme will be fixed every year in accordance with the Senior Citizen Savings Scheme (SCSS).
The first year’s expenditure on the management of the scheme has been fixed at 0.5 percent of the investment amount. The expenditure for the next nine years from the second year has been fixed at 0.3 percent per annum.
According to the release, The financial liability on this can range from Rs. 829 crores in FY 2023-24 to Rs. 264 crores in the last FY 2032-33. Rs. 614 crores of subsidy reimbursement for annual payments on a real basis. Is expected to happen.
However the actual interest differential (subsidy) will depend on the actual basis of the conditions in the number of newly issued policies. The plan was announced in the budget for FY 2017-18. The pension can be taken monthly, quarterly, half-yearly, or annually under this ten-year plan.
PMVVY Helpline Details
More information about Pradhan Mantri Vaya Vandana Yojana, you can call 022-67819281 or 022-67819290. Apart from this, the benefits of the scheme can also be understood through the toll-free number – 1800-227-717 and email onlinedmc@licindia dot com. Apart from this, you can understand the scheme in detail by visiting this PMVVY Yojna website link.
The Union Cabinet on Wednesday has extended the last period of investment under the scheme from 31 March 2020 to 31 March 2023. The PMVVY scheme implemented through Life Insurance Corporation (LIC) is aimed at senior citizens (60 years and above). Has to pay a fixed minimum pension based on assured return on purchase price/subscription amount?
Under this scheme, senior citizens will have to invest Rs 1, 56,658 for a minimum pension of Rs 12,000 per year, and Rs 1, 62,162 for getting a minimum pension amount of Rs 1000 per month.
If a senior citizen leaves the scheme in the middle or exits, then there is also an option to withdraw his money before maturity in the scheme. If the pensioner has a serious illness, then the pensioner is required to get the money for treatment. 98% of the amount deposited from the side will be returned.
Under this Pradhan Mantri Vaya Vandana Yojana 2020, you can take a loan even after 3 years of depositing the amount. You can take a loan up to 75% of the amount you deposit. The interest on the loan amount is fixed every quarter. You will have to pay interest every 6 months till you return the amount of interest. The amount of interest will be deducted from the pension given.