New Delhi: The Union Cabinet on Wednesday approved doubling of investment limit for senior citizens from Rs 7.5 lakh to Rs 15 lakh under Pradhan Mantri Vaya Vandana Yojana (PMVVY).
The time limit for subscription under PMVVY has also been extended from May 4, 2018 to March 31, 2020. It will enables upto Rs 10000 Pension per month for senior citizens.
The PMVVY is being implemented through Life Insurance Corporation of India (LIC) to provide social security during old age and protect elderly persons aged 60 years and above against a future fall in their interest income due to uncertain market conditions.
“As of March, 2018, a total number of 2.23 lakh senior citizens are being benefited under PMVVY. In the previous scheme of Varishtha Pension Bima Yojana-2014, a total number of 3.11 lakh senior citizens are being benefited,” a government release has said.
The scheme provides an assured pension based on a guaranteed rate of return of 8 percent per annum for ten years, with an option to opt for pension on a monthly / quarterly / half yearly and annual basis. The differential return, i.e. the difference between the return generated by LIC and the assured return of 8 percent per annum would be borne by the government as subsidy on an annual basis.