Cabinet doubles investment under PMVVY to Rs 15 lakh
New Delhi: Providing some relief to senior citizens, the government has doubled the investment limit to Rs 15 lakh under the PMVVY pension scheme and extended the subscription period, which was to end on Thursday, by two years.
The Pradhan Mantri Vaya Vandan Yojana is for citizens aged 60 years and above. It was opened for subscription from May 4, 2017 to May 3, 2018. It has now been extended to March 31, 2020.
The scheme provides an assured pension based on a guaranteed rate of return of 8 per cent per annum for ten years, with an option to opt for pension on a monthly, quarterly, half yearly or annual basis.
The decision was taken on Wednesday at the Union Cabinet chaired by Prime Minister Narendra Modi, IT and Law Minister Ravi Shankar Prasad said.
He said the Cabinet has approved increasing the investment limit from Rs 7.5 lakh to Rs 15 lakh as well as the extension of subscription period for PMVVY as part of the government's commitment to financial inclusion and social security.
The move will enable up to Rs 10,000 pension per month for senior citizens, he added.
As of March, 2018, 2.23 lakh senior citizens had subscribed to PMVVY. In the previous scheme, Varishtha Pension Bima Yojana-2014, 3.11 lakh senior citizens have invested.