New Delhi (NVI): In good news for senior citizens, the Union Cabinet today approved the extension of Pradhan Mantri Vaya Vandana Yojana (PMVVY) up to 31st March 2023, for a further period of three years.
The government had extended the scheme up to March 2020 in the Union Budget 2018-19. The decision in this regard was taken by Union Cabinet, chaired by Prime Minister Narendra Modi, today. The scheme is aimed at welfare and to enable old age income security for Senior Citizens.
The approval will allow initially an assured rate of return of 7.40 % per annum for the year 2020-21 per annum and thereafter to be reset every year, the Ministry of Finance said in a statement.
The Cabinet has also given its approval for annual reset of assured rate of interest with effect from April 1st of financial year in line with revised rate of returns of Senior Citizens Saving Scheme (SCSS) upto a ceiling of 7.75% with fresh appraisal of the scheme on breach of this threshold at any point.
The income security scheme for senior citizens is implemented through the Life Insurance Corporation (LIC).
It intends to give an assured minimum pension to senior citizens (60 years and above) based on an assured return on the purchase price/subscription amount.
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.