Cabinet extends senior citizen pension scheme for 3 years to 2023

The Union Cabinet on Wednesday extended the Pradhan Mantri Vaya Vandana Yojana (PMVVY), a social security scheme for senior citizens, for three years till March, 2023, but reduced the rate of interest on the scheme to 7.40% in 2020-21 from 8% per annum until now.

PMVVY scheme, implemented through the Life Insurance Corporation (LIC), is intended to give an assured minimum pension to senior citizens (60 years and above) based on their subscription amount.

The scheme was announced in Union Budget of 2017-18 and 2018-19. In 2018-19 Budget, the maximum investment limit under PMVVY was doubled to Rs 15 lakh per senior citizen.

Pension is payable at the end of each period during the policy term of 10 years, as per monthly, quarterly, half-yearly, yearly frequency, as chosen by the pensioner at the time of purchase, an official statement said after the cabinet meeting chaired by Prime Minister Narendra Modi.