InvestorQ : What are the benefits under Pradhan Mantri Vyay Vandana Yojana? What is the last date to apply?
Anisha Awate made post

What are the benefits under Pradhan Mantri Vyay Vandana Yojana? What is the last date to apply?

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Sadaf Khan answered.
5 months ago
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Pradhan Mantri Vyay Yojana (PMVVY) was introduced with a view to providing fixed-income security and several other benefits to the senior citizens. The entry age for the scheme is 60 years and will provide a fixed interest up to the rate of 8% along with capital security. To invest in PMVVY you need to approach Life Insurance Corporation (LIC) as no other institution is authorized to provide the facility. Earlier, one was allowed to invest in the scheme by 31st March 2020. However, due to the coronavirus pandemic, the government has decided to allow an extension, and now one can make an investment in the scheme till 31st March 2023. However, the extension comes with some changes in the benefits of the scheme:

1)Initially, the rate of return shall be 7.40% per annum for the year 2020-21 and thereafter shall be revised accordingly. The authority to revise the rate of return shall be in the hands of the Finance Minister after considering the market returns.

2)The revision on rates after 2020-21 shall be in accordance with the Senior Citizens Savings Scheme (SCSS). However, the maximum ceiling for the same shall be 7.75% with a fresh appraisal of the scheme on breach of the set threshold at any point.

3)The management expenses for the first year of the scheme shall be 0.5% p.a. for all new policies and thereafter 0.3% p.a. from second-year till the tenth year.

4)The scheme shall have a maturity period of 10 years.

5)Approval for expenditure incurred on account of the difference between the guaranteed rate of return and market rate of return generated by LIC shall be by Finance Ministry.
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