The Union Cabinet chaired by Prime Minister Narendra Modi, today approved the doubling of investment limit in Pradhan Mantri Vaya Vandan Yojana (PMVVY) to Rs. 15 lakh, from the current level of Rs 7.5 lakh.
According to an official release, the doubling of the limit will help senior citizens earn a pension of up to Rs 10,000 per month. The Cabinet also approved the time period for subscription of this scheme to March 31, 2020, from May 4, 2018.
In Budget 2018, Finance Minister Arun Jatiley had proposed to increase the investment limit in PMVVY or Pradhan Mantri Vaya Vandana Yojana to Rs. 15 lakh. Financial planners say PMVVY offers more avenues to senior citizens to earn a steady regular income at times when fixed deposit interest rates are not that attractive.
As of March 2018, a total number of 2.23 lakh senior citizens were getting regular pension under the Pradhan Mantri Vaya Vandan Yojana (PMVVY). PMVVY can be purchased offline as well as online through Life Insurance Corporation (LIC) of India. At the end of the policy term of 10 years, the pensioner gets back the purchase price (amount invested to earn pension) along with final pension instalment.