Govt extends Pradhan Mantri Vaya Vandana Yojana till 31 March 2023; Lowers Interest Rate to 7.4%
- The Union Cabinet has approved the extension of ‘Pradhan Mantri Vaya Vandana Yojana’ (PMVVY), a pension scheme for senior citizens above 60, for a further period of three years up to 31 March 2023.
- Earlier, the last date of PMMVY was March 31, 2020.
- However, the government has fixed the annual rate of return on the scheme at 7.4 percent for financial year 2020-21, and thereafter to be reset every year.
- This interest rate is lower as compared to 8 percent being given for the financial year ending 31 March 2020.
Key features of Pradhan Mantri Vaya Vandana Yojana (PMVVY)
- The Pradhan Mantri Vaya Vandana Yojana (PMVVY) was launched in 2017 to offer a guaranteed payout of pension to senior citizens every month.
- The scheme can be purchased offline as well as online, through Life Insurance Corp. of India (LIC), which is the sole institution allowed by the government to offer the plan.
- Any individual who is 60 or above can avail the benefits
- The maximum amount that can be invested under the scheme is Rs 15 lakh.
- The tenure of the policy is set at 10 years.
Points to remember:
- What is the full form of PMVVY?
- What is the extended timeline for the PMVVY?
- What will be the interest rate given on the PMVVY to the beneficiaries?
- What is the maximum amount that can be invest in the PMVVY scheme?
- Which institution is responsible to offer the service of PMVVY?
- What is the tenure of the PMVVY scheme?