The Union cabinet chaired by Prime Minister Narendra Modi on Wednesday decided to increase the investment limit under Pradhan Mantri Vaya Vandan Yojana (PMVVY) to Rs. 15 lakhs from the current Rs. 7.5 lakhs. The scheme enables senior citizens to get some steady income on a regular basis.
The scheme fetches an assured pension amount on the basis of guaranteed return of 8% per annum for 10 years. With this investment limit hike, investors will be able to get a pension amount of up to Rs. 10,000 on a monthly basis. Furthermore, the cabinet approved the time period of subscription to the scheme from May 4, 2018 to March 31, 2020.
The scheme catered to by the LIC provides interest rate protection due to uncertain market conditions. And subscribers of the scheme have the option to opt for monthly, quarterly, half-yearly or annual basis.
The interested senior citizens aged 60 years and above and enroll in the scheme by opening the account either offline or online.