PMVVY Investment Limit doubled to Rs 15 Lakhs by Modi Cabinet

Prime Minister recently chaired cabinet meeting where he approved the doubling of investment limit in Pradhan Manrti VyayVandan Yojna or PMVVY. This is ensure better social security for citizens above 60 years of age.

PMVVY Benefit to Senior Citizens

Pradhan Mantri Vyay Vandan Yojna or PMVVY is a policy of the government of India that enables the senior citizens of India to get pension up to Rs 10, 000 per month. The benefactor under this scheme will be exempted from GST and income tax under 80C.

The present decision taken by the government will prove beneficiary for the senior citizens as the government has increased the investment limited from Rs 7.5 lakhs to Rs 15 lakhs thus doubling it. The cabinet has also extended the deadline for subscription to this policy.

Under this cabinet decision, the last date for subscription is now extended to March 31st 2020 which was earlier May 4th 2018. This will give more time for senior citizens to get benefits from the scheme.

Earlier the upper investment limit was Rs 7.5 lakhs that would give maximum pension of Rs 5000 per month which is now increased to maximum Rs 10, 000 per month. The scheme also provide 8% guaranteed return for ten years.

Government will Bear the Differential Return through Subsidy

The scheme will be implemented by the Life Insurance Corporation or LIC. User can opt for monthly, quarterly, Half-yearly and annual pension plans. The government will borne the difference in return that is return generated by LIC and return guaranteed by GOI by providing subsidy.

It should be noted that percentage of return mostly depends on the market conditions but through this scheme the rate of return will be fixed till ten years to 8% per annum. The minimum amount that can be invested is Rs 1.5 lakhs which will bear Rs 1000 per month as pension.

As of now, a total of 2.33 lakh senior citizens have benefited from this scheme and under the Varistha Pension Bima Yojna-2014, 3.11 lakh senior citizens have benefited. The scheme will work as a safeguard for senior citizens who have uncertainty of future.