×

UPSC Courses

DNA banner

DAILY NEWS ANALYSIS

  • 11 June, 2020

  • 3 Min Read

Pradhan Mantri Vaya Vandhana Yojana

Pradhan Mantri VayaVandhanaYojana

This scheme deals with a senior citizen insurance scheme which promises the assured annual return of 8% for 10 years. The insurance is sold by Life Insurance of India for the citizens. The Minimum age of entry is 60 years of age with no maximum limit.

Recent news

The Union Cabinet has extended Pradhan Mantri Vaya Vandana Yojana (PMVVY) for a period of three years. This social security scheme for senior citizens will now be valid till March 2023.

  • Earlier, the scheme was open till 31st March 2020.
  • Initially, an assured rate of return of 7.40% per annum for the year 2020-21 per annum will be provided and thereafter to be reset every year in line with the Senior Citizen Savings Scheme (SCSS).
  • The Finance Minister will approve an annual reset rate of return at the beginning of every financial year.

Imp points

  • The Pradhan Mantri Vaya Vandana Yojana was launched in 2017 by the Ministry of Finance to offer a guaranteed payout of pension to senior citizens every month.
  • The Scheme can be purchased offline as well as online through the Life Insurance Corporation (LIC) which has been given the sole privilege to operate this Scheme.
  • Eligibility:
    • Minimum Entry Age: 60 years (completed)
    • Maximum Entry Age: No limit
  • Components:
    • One can invest a maximum amount of Rs. 15 lakh under the PMVVY scheme. The tenure of the policy is set at 10 years.
    • Senior citizens can draw a minimum pension of Rs. 1,000 per month depending on the amount invested in the scheme. The maximum pension amount is limited at Rs. 10,000 per month.
    • Pension will be payable as per the frequency of monthly, quarterly, half-yearly, and yearly as chosen by the pensioner at the time of purchase.
    • Aadhar has been made mandatory to avail the benefit of the scheme.
  • Role of the Government:
    • The Government’s financial liability is limited to the extent of the difference between the market return generated by LIC and the assured rate of return (7.4% for 2020-21).
    • The pension is based on the assured rate of return.
    • This protects elderly persons aged 60 years and above against a future fall in their interest income due to uncertain market conditions.
  • Other Benefits:
    • Loan up to 75% of Purchase Price shall be allowed after 3 policy years.
    • The scheme is exempted from Goods & Services Tax (GST).

Source: PIB


India–Azerbaijan

A year after tensions arising from Operation Sindoor, India and Azerbaijan have taken steps to restore and normalise bilateral relations. The 6th round of Foreign Office Consultations, held in Baku, marked the first such engagement since 2022, signaling renewed diplomatic momentum. Recent Diplomatic Engagement During the consultations, bo

India–Australia Economic Cooperation and Trade Agreem

The India–Australia Economic Cooperation and Trade Agreement has completed four years since its signing. Both countries now aim to build on this progress through strengthened collaboration and ambitious targets, including reaching AUD 100 billion in bilateral trade by 2030. What is the India–Australia Economic Cooperation and Tra

ADR Report on Political Funding

A recent report by the Association for Democratic Reforms (ADR) analyses donations of ?20,000 or more declared to the Election Commission of India (ECI) by national political parties for FY 2024–25, highlighting transparency and accountability in political financing. Key Findings Massive Funding Surge Total donations to nationa

Maritime Chokepoints

Maritime chokepoints are narrow channels along global shipping routes where maritime traffic is concentrated. These points are geopolitically and economically critical, as they handle a large proportion of global trade, especially energy shipments. Current Relevance Over two-thirds of seaborne energy trade passes through a handful o

US-Israel-Iran War

Following the launch of Operation Epic Fury (U.S.) and Operation Roaring Lion (Israel), the geopolitical landscape has shifted fundamentally with the confirmed death of Iran’s Supreme Leader, Ayatollah Ali Khamenei.Iran retaliated through Operation True Promise 4, launching missile attacks against Israel and nearby Gulf states. The escala

DNA

05 Apr,2026

Toppers

Search By Date

Newsletter Subscription
SMS Alerts

Important Links

UPSC GS Mains Crash Course - RAW