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Govt doubles PMVVY pension investment limit to Rs 15 lakh; extends scheme by 2 yrs

Press Trust of India  |  New Delhi 

Providing some relief to senior citizens, the government has doubled the investment limit to Rs 15 lakh under the PMVVY scheme and extended the subscription period, which was to end tomorrow, 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 based on a guaranteed rate of return of 8 per cent per annum for ten years, with an option to opt for on a monthly, quarterly, half yearly or annual basis.

The decision was taken today at the chaired by Narendra Modi, IT and 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

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.

The PMVVY is being implemented through Corporation of India (LIC) to provide and protect the elderly, 60 years and above, against a future fall in their interest income due to uncertain market conditions.

The difference between the return generated by LIC and the assured return of 8 per cent annually will be borne by the government of as yearly subsidy.

(This story has not been edited by Business Standard staff and is auto-generated from a syndicated feed.)

First Published: Wed, May 02 2018. 17:35 IST
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