Senior citizens look for such an investment option from where they can earn a regular income. For this purpose, Pradhan Mantri Vaya Vandana Yojana (PMVVY) might be a good option
Key Highlights
- The policy term is 10 years and the minimum pension is Rs 1,000 per month, Rs 3,000 per quarter, Rs 6,000 and Rs 12,000 per year
- Finance Ministry has issued a notification saying senior citizens who have invested in Pradhan Mantri Vaya Vandana Yojana have to submit their proof of Aadhaar number
Recently, the Finance Ministry has issued a notification saying senior citizens who have invested in Pradhan Mantri Vaya Vandana Yojana (PMVVY) have to submit their proof of Aadhaar number or undergo Aadhaar authentication. The maximum limit which can be invested under Pradhan Mantri Vaya Vandana Yojana is Rs 15 lakhs per senior citizen.
The pension is paid on a monthly, quarterly, half-yearly and yearly basis through National Electronic Funds Transfer (NEFT) or Aadhaar Enabled Payment System (AePS). The first installment of pension shall be paid after 1 year, 6 months, 3 months or 1 month from the date of purchase of the same depending on the mode of pension payment i.e. yearly, half-yearly, quarterly or monthly respectively.
If a policyholder is not satisfied with the “Terms and Conditions” of the policy, he or she may return the policy to the Corporation within 15 days (30 days if this policy is purchased online) from the date of receipt of the policy, stating the reason of objections. The amount to be refunded within the free look period shall be the Purchase Price deposited by the policyholder after deducting the charges for Stamp duty and pension paid if any.
A policyholder can also avail of a loan facility after completion of three policy years. The maximum loan that can be granted shall be 75 per cent of the purchase price. The rate of interest to be charged for loan amount shall be determined at periodic intervals.