Pradhan Mantri Vaya Vandana Yojana

IN NEWS:

• The Union Cabinet has approved extension of ‘Pradhan Mantri Vaya Vandana Yojana’ (PMVVY) for a further period of three years.

ABOUT THE SCHEME:

• PMVVY is a pension scheme exclusively for the senior citizens aged 60 years and above.
• It was launched in 2017 by the Finance Ministry for a period of three years, which has now been extended.

FEATURES:

• The tenure of the policy is 10 years and a person can invest a maximum amount of Rs. 15 lakh under the scheme.
• Senior citizens can draw a minimum pension of Rs. 1,000 and maximum of Rs. 10000 per month, depending on the amount they have invested in the scheme.
• The scheme offers an assured rate of return of 8% per annum for 10 years.
• The Scheme can be purchased offline as well as online through Life Insurance Corporation. Aadhaar card is mandatory for availing the scheme.
• The scheme is exempted from GST. Loan up to 75% of Purchase Price shall be allowed after 3 policy years.

PRELIMS QUESTION:

Q. Which of the following statements regarding the ‘Pradhan Mantri Vaya Vandana Yojana’ are correct:

1. It is a pension scheme exclusively for senior citizens
2. It is being implemented through Life Insurance Corporation (LIC) of India
3. Aadhaar is mandatory for availing the scheme

Choose the correct answer from the codes given below:

1. 1 and 2 only
2. 1 and 3 only
3. 2 and 3 only
4. All of the above

Answer to Prelims question

Source: PIB