Cabinet approves extension of ‘Pradhan Mantri Vaya VandanaYojana’

Cabinet approves extension of ‘Pradhan Mantri Vaya VandanaYojana’

Agency News

New Delhi, May 20 : The Union Cabinet, chaired by Prime Minister Narendra Modi, on Wednesday its approval to extension of Pradhan Mantri Vaya VandanaYojana (PMVVY) up to March 31, 2023 for further period of three years beyond March 31, 2020 for the welfare of and to enable old age income security for senior citizens. The Cabinet also gave its nod to allow initially an assured rate of return of 7.40 per cent per annum for the year 2020-21 per annum and thereafter to be reset every year.

It also approved annual reset of assured rate of interest with effect from April 1 of financial year in line with revised rate of returns of Senior Citizens Saving Scheme (SCSS) up to a ceiling of 7.75 per cent with fresh appraisal of the scheme on breach of this threshold at any point.

It also gave its approval for expenditure to be incurred on account of the difference between the market rate of return generated by LIC (net of expenses) and the guaranteed rate of return under the scheme, Capping Management expenses at 0.5 per cent per annum of funds of the scheme for first year of scheme in respect of new policies issued and thereafter 0.3 per cent p a for second year onwards for the next 9 years.

The Cabinet also approved delegating the authority to the Finance Minister to approve annual reset rate of return at the beginning of every financial year and all other terms and conditions of the scheme remaining the same. The minimum investment has also been revised to Rs 1,56,658 for pension of Rs 12,000 per annum and Rs 1,62,162 for getting a minimum pension amount of Rs 1000 per month under the scheme. PMVVY is a social security scheme for senior citizens intended to give an assured minimum pension to them based on an assured return on the purchase price or subscription amount. (UNI)