Pradhan Mantri Vaya Vandan Yojana (PMVVY)

RELEVANCE – GS PRELIMS

EXPECTED QUESTIONS

QUES 1 . Consider the following statements about PMVVY

1 . PMVVY is a pension scheme for senior citizens 65 years and above.

2 . It is being implemented by Life Insurance Corporation of India.

3 . It was launched on May 4, 2017.

Which among the above statements is /are incorrect ?

a . 1 only

b . 2 only

c . 1 & 2

d . 1 & 3

Answer – a

Pradhanmantri Vaya Vandana Yojana (PMVVY) has been launched on May 4, 2017, and will be available until one year from the launch.

PMVVY is a pension scheme for senior citizens (60 years and above) being implemented by Life Insurance Corporation of India. It was launched on May 4, 2017.

Key Features of PMVVY 

1 : There is a guaranteed interest of over 8% for 10 years and the pension is received at the end of the time period chosen either monthly, quarterly, half-yearly or yearly.

2 : For yearly pension, the minimum investment is Rs 1.44 lakh and maximum is Rs 7.22 lakh. For monthly mode, the minimum to be invested is Rs 1.5 lakh and the maximum is Rs 7.5 lakh(recently increased to Rs 15 lakh).

3 : If pensioner survives policy term, the amount invested along with final pension instalment is payable.

4 : On death of pensioner during policy term, amount invested is given to beneficiary.

5 : The scheme allows premature exit during the policy term under exceptional circumstances like for the treatment of any critical/terminal illness of self or spouse.

6 : The scheme will be available until one year from the launch that is till 4th May, 2018 (recently extended from 4th May, 2018 to 31st March, 2020).

Recent development

Recently as a boost to the social security initiatives for senior citizens, the investment limit of Rs 7.5 lakh per family in the existing scheme is enhanced to Rs 15 lakh per senior citizen in the modified PMVVY, thereby providing a larger social security cover to the senior citizens.Time limit for subscription under PMVVY has also been extended from 4th May, 2018 to 31st March, 2020.