Recently updated Pradhan Mantri Vaya Vandana Yojana (PMVVY)
Recently updated Pradhan Mantri Vaya Vandana Yojana (PMVVY)
Government has launched the ‘Pradhan Mantri Vaya Vandana Yojana (PMVVY)’.
Aim:
To provide social security during old age and to protect elderly persons aged 60 and above against a future fall in their interest income due to uncertain market conditions.
About the Scheme:
The scheme enables old age income security for senior citizens through provision of assured pension/return linked to the subscription amount based on government guarantee to Life Insurance Corporation of India (LIC).
- The scheme provides an assured return of 8% per annum for 10 years.
The differential return, i.e. the difference between return generated by LIC and the assured return of 8% per annum would be borne by Government of India as subsidy on an annual basis. Pension is payable at the end of each period during the policy tenure of 10 years as per the frequency of monthly/quarterly/ half-yearly/yearly as chosen by the subscriber at the time of purchase.
| Minimum purchase price | Minimum pension | Duration |
| Rs.1,50,000/- | Rs. 1,000/- | per month |
| Maximum purchase price | Maximum pension | Duration |
| Rs.7,50,000/- | Rs.5,000/- | per month |
The scheme is exempted from Goods and Services Tax. The scheme is open for subscription till 3rd May 2018.
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