Pradhan Mantri Vaya Vandana Yojana

On May 4, 2017, the government announced the Pradhan Mantri Vaya Vandana Yojana. This is a government pension plan designed to give social security to senior persons while also protecting them from a potential drop in interest income owing to unfavourable market circumstances. Senior people aged 60 and up can apply for this pension system before March 31, 2020.

In the table below, some of the features of the Pradhan Mantri Vaya Vandana Yojana are discussed:

Pradhan Mantri Vaya Vandana Yojana
Date of launching	4th May 2017
Department	Department of Financial Services, Government of India
Government Ministry	Ministry of Finance
Activation Period	4th May 2017 to 31st March 2020

Get a comprehensive List of Government Schemes in India at the linked article.

Pradhan Mantri Vaya Vandana Yojana (UPSC Notes) –Download PDF Here

Benefits of Pradhan Mantri Vaya Vandana Yojana

Life Insurance Corporation manages and operates the Pradhan Mantri Vaya Vandana Yojana (PMVVY), a government pension programme for old individuals (LIC). The following are some of the scheme's primary advantages:

• The programme guarantees an annual return of 8%, payable monthly, and is free from service tax and GST.
• After three policy years, the plan gives a loan of up to 75% of the purchase price.
• The plan also permits for early exit in the event of a serious or fatal disease in oneself or one's spouse. In the event of such an early withdrawal, 98 percent of the Purchase Price will be returned.
• The benefits of the programme can be used by the nominee or beneficiary if the pensioner dies within the ten-year insurance period.
• The pensioner, his or her spouse, and dependents are all eligible for the scheme's benefits.

Eligibility of Pradhan Mantri Vaya Vandana Yojana

Any individual must fulfil the following criteria for being eligible under Pradhan Mantri Vaya Vandana Yojana:

• He/she should be 60 years or above to be eligible for the scheme.
• The policy term should be of 10 years.
• Investment limit should be Rs. 15 lakh per senior citizen.
• The minimum pension should be Rs. 1,000/- per month and should not be more than Rs. 10,000/- per month.