new Delhi. The Union Cabinet chaired by Prime Minister Narendra Modi has accredited the next to allow the welfare of senior residents and previous age earnings safety:
(A) Extension of Pradhan Mantri Vay Vandana Yojana (PMVVY) from 31 March 2020 to the subsequent three years i.e. 31 March 2023.
(B) Initially the fastened price of return of seven.40 p.c each year for 2020-21 and might be re-adjusted yearly thereafter.
(C) In line with the revised price of return of Senior Citizen Savings Scheme (SCSS), the speed of annual adjusted assured curiosity efficient from April 1 within the monetary yr might be as much as 7.75 per cent with the brand new valuation of the scheme at any level.
(D) Approval for expenditure as a result of distinction between the assured price of return below the scheme and the market price of return by LIC. <! –
(E) Limiting the monetary administration bills of the primary yr funds of the scheme to 0.5 p.c each year in respect of newly issued insurance policies and 0.three p.c each year for the subsequent 9 years from the second yr thereafter.
(F) The Finance Minister is empowered to approve an annual adjusted price of return on each monetary yr.
(G) The different phrases and circumstances of this scheme will stay the identical.
Under the scheme, Rs 1,56,658 has been revised for a pension of Rs 12,000 per yr and Rs 1,62,162 to get a minimal pension quantity of Rs 1000 per thirty days.
The authorities's monetary obligation is restricted to the enlargement of the distinction between the assured return of seven.40 per cent initially for the yr 2020-21 and the market return fastened by LIC and might be decided thereafter in accordance with the SCSS. The monetary administration bills of the scheme are restricted to 0.5 per cent each year of belongings below administration for the primary yr and 0.three per cent each year for the subsequent 9 years from the second yr onwards. According to this, there might be an estimated expenditure of Rs 829 crore within the monetary yr 2023-24 and Rs 264 crore within the final monetary yr 2032-33. The subsidy reimbursement is anticipated to be Rs 614 crore for the annual cost on precise foundation. However the precise curiosity differential (subsidy) will rely on the precise expertise of the phrases within the variety of newly issued insurance policies.
PMVVY is a social safety scheme for senior residents which intends to make sure minimal pension to them on the premise of assured return on buy value / annual contribution.