Investment Limit for Senior Citizens Doubled – Pradhan Mantri Vaya Vandana Yojana (PMVVY)

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CCEA has approved Doubling of Investment Limit for Senior Citizens from ₹ 7.5 lakh to ₹ 15 lakh under Pradhan Mantri Vaya Vandan Yojana (PMVVY) . CCEA meeting on 2nd May 2018 was presided over by PM. Central govt. approves extension of time limit for subscription of PMVVY 2018 from 4th May 2018 to 31st March 2020.

Pradhan Mantri Vaya Vandana Yojana
  • Scheme will enable senior citizens to get upto ₹ 10,000 per month as pension. Earlier, max. investment limit was ₹ 7.5 lakh which enables person above 60 years of age to get ₹ 5000 as monthly pension.
  • Details of Investment Limit Doubling for Senior Citizens- PMVVY 2018.
  • Imp. features & highlights of CCEA decision of extending investment & time limit under Pradhan Mantri Vaya Vandana Yojana 2018 scheme are as follows:-
  1. To boost social security for senior citizens, central govt. has doubled investment limit from ₹ 7.5 lakh to ₹ 15 lakh under PMVVY 2018.
  2. Accordingly, this larger social security cover will enable senior citizens to avail up to ₹ 10,000 as monthly pension (earlier ₹ 5,000) .
  3. Till March 2018, there are total 2.23 lakh beneficiaries (senior citizens) under PMVVY 2018. Previous Varishtha Pension Bima Yojana 2014 scheme has total 3.11 lakh beneficiaries/senior citizens.

LIC of India implements this scheme to provide security cover to senior citizens & to protect elder ones.

Details of Pradhan Mantri Vaya Vandana Yojana 2018

  • PMVVY 2018 is senior citizen welfare scheme to protect citizens above 60 years of age against future fall in their interest income due to uncertain market conditions.
  • This scheme provides assured guaranteed return of 8 % per annum for 10 years.
  • Life Insurance Corporation (LIC) of India implements PMVVY 2018 Scheme.
  • Candidates can purchase this scheme both thru offline & online modes. For online mode, visit website www.licindia. in
  • In this modified PMVVY Scheme, senior citizens can opt for pension on monthly/quarterly/half-yearly & yearly basis.
  • Candidates can see policy document of Pradhan Mantri Vaya Vandana Yojana 2018 - Policy Document (PDF) .
  • Difference in returns as provided by LIC & assured return of 8 % per annum is borne by central govt.
  • Loan upto 75 % of Purchase Price shall be allowed after 3 policy years. Loan interest shall be recovered from pension installments & loan to be recovered from claim proceeds.
  • Scheme allows for premature exit for treatment of any critical/terminal illness of self or spouse. On such premature exit, 98 % of Purchase Price shall be refunded.
  • On death of pensioner during policy term of 10 years, Purchase Price shall be paid to beneficiary.
  • Central govt. provides differentiated amount as subsidy on annual basis.
  • Scheme is exempted from Service Tax/GST.

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