IndiaFilings / Learn / Government Initiatives / Pradhan Mantri Vaya Vandana Yojana
Pradhan Mantri Vaya Vandana Yojana - Pension Scheme - IndiaFilings

Pradhan Mantri Vaya Vandana Yojana

The welfare of the senior citizens (above 60 years) is something that cannot be ignored. India being a senior citizen-friendly country lays special emphasis on the social and economic security of the old-aged people. Pradhan Mantri Vaya Vandana Yojana (PMVVY) is a flagship pension scheme for senior citizens, which was launched in May 2017. In a big relief to the retirees who depend on the pension for their basic expenses, Pradhan Mantri Vaya Vandana Yojana was announced to enable them to generate income post retirement. The Union Cabinet proposed some changes to the scheme policy. The scheme was initially made available for one from the launch date, which has been extended now until March 31, 2020. Regarding the investment limit, it has been doubled from 7.5 Lakhs to 15 Lakhs. The article discusses the pension scheme in detail.

Features of Pradhan Mantri Vaya Vandana Yojana

The scheme offers an assured return of 8 per cent per annum throughout the term of the policy, which is ten years. The minimum investment that can be made on the policy is Rs.1.5 Lakhs and the maximum limit is Rs.15 Lakhs. The applicant decides the purchase price, i.e., the amount invested in buying the policy. The pension period can be monthly, quarterly, half-yearly or yearly as per the pensioner’s option and the pension amount will be paid at the end of each period. The retiree can earn Rs.1000 up to Rs.10,000 per month depending on the amount invested in the policy. A pension amount of Rs.3000 to Rs.30,000 can be earned on quarterly mode while Rs.6,000 to 60,000 on a half-yearly basis. On the whole, the retiree can yield a revenue of Rs.12,000 to Rs.1,20,000 per year. The maximum pension limit applies for the total amount permitted to the entire family (includes the pensioner, spouse and dependents) under this policy.

Opening a Pension Account

Any individual of 60 years who has retired can open an account within one month of the retirement. The purchase amount should not exceed the retirement benefit.

Pre-mature Exit

If the pensioner or the spouse is affected by any terminal illness during the pension term, the investor can withdraw. On such an exit, 98 per cent of the purchase price will be reimbursed. In case of pensioner’s death during the ten years, the purchase price would be refunded completely to the nominee.

Closure of Account

The account terminates in ten years from entering into the scheme. Purchase price along with final pension instalment is paid to the pensioner on survival to the end of the policy term of ten years.

Eligibility Criteria for Pradhan Mantri Vaya Vandana Yojana

The senior citizen planning to avail this scheme for a secure retirement should fulfil the following conditions.
  • The applicant should be an Indian by citizenship
  • The applicant should be a senior citizen (60 years and above)
  • There is no maximum age limit to benefit from this scheme
  • The person who continues to work after retirement is not eligible.

Documents Required

The applicant should furnish the necessary documents.
  • Aadhar card
  • Age proof
  • Address proof
  • Passport size photo
  • Relevant documents proving that the applicant has retired

Application Process

The senior citizen can apply either online or offline for Pradhan Mantri Vaya Vandana Yojana.

Offline Process

The Government has implemented this scheme through LIC and hence the application form should be filled and submitted to any branches of LIC office. The application form can be procured by either visiting any LIC office or can download a copy of the application form which is provided below.

Online Process

Step 1: Online purchase of the certificate can be made by first visiting the official website and clicking Pradhan Mantri Vaya Vandana Yojana under ‘Buy Policies’ header. Step 2: On clicking ‘Buy Online’ button, the application form will open on next page.   [caption id="attachment_52685" align="aligncenter" width="418"]PM-Vaya-Vandana-online-application PM Vaya Vandana online application Step 3:  Fill in the necessary details in the PMVVY application form and click "Get Access ID". A 9-digit access ID will be sent by email/SMS. Step 4:  Enter the access ID in the access ID box and click "Proceed". Step 5: Select the PMVVY pension plan and complete the application. On completing the application, an acknowledge number and a policy number at the end of the application form will be provided.

Mode of Payment

The pension payment would be disbursed to the applicant through NEFT or Aadhaar Enabled Payment System based on the pension period selected by the applicant.

Benefits of Pradhan Mantri Vaya Vandana Yojana

  1. The pension scheme allows the pensioner to apply for a loan amount of 75% of purchase price after three years of the pension term to meet urgent requirements. The interest depends on the purchase price.
  2. This pension plan allows pre-mature exit
  3. The plan is exempted from GST/Service tax. The interest earned is taxable.
Note: The scheme has a facility of returning the policy to the Corporation within 15 days (30 days if this policy is purchased online) from the date of receipt of the policy if  the policyholder is not satisfied with the “Terms and Conditions” of the policy provided that he/she should state the reason of objection. Stamp Charges will be deducted from the amount paid.
MARLIN PRIYA J
Updated on: January 7th, 2020

Popular Post

Download ePAN Card – Get ePan from NSDL & UTIITSL
80 Small Business Ideas

Starting a small business can be a transformative venture, offering the exciting opportunity...

Nadakacheri – Income Caste Certificate Download Online in Karnataka
TDS Rate Chart for Financial Year 2025-2026 (Assessment Year 2026-2027)

Tax deduction at source, shortly and popularly known as TDS, was introduced by the Income Tax...

Divorce Rules in India: Everything You Need to Know
How To Download GST Registration Certificate Online?

Goods & Services Tax Certificate is issued to people who are registered under GST...

PAN Card Cancellation Online
Find Complete Details of GST Registration Procedure

GST registration applies to all individuals and entities supplying goods or services in India. GST...

Check Your PF Claim Status Online Using PF Tracking ID
Gift Tax in India: Applicability, Exemptions and Rules

Gift tax in India is applied when the value of the received gift exceeds ₹50,000 in the...

Check Your PF Claim Status Online Using PF Tracking ID
Old Regime vs New Regime 2025: Which Tax Regime is Better for You?

The Union Budget 2025 has brought significant changes to India’s personal income tax structure, raising the...

Check Your PF Claim Status Online Using PF Tracking ID
What is the minimum turnover for GST?

The Goods and Services Tax (GST) is an indirect tax system introduced in India in 2017. It functions...

Check Your PF Claim Status Online Using PF Tracking ID
How can I check if a trademark is registered?

A trademark search is simply checking if another person or organization does not already own the...

Check Your PF Claim Status Online Using PF Tracking ID
Section 194H of the Income Tax Act: TDS on Commission & Brokerage

Section 194H of the Income Tax Act in India mandates the deduction of Tax at Source (TDS) on commission or brokerage...

Check Your PF Claim Status Online Using PF Tracking ID
Section 80G Deduction - Income Tax Act

Section 80G Deduction is a facility available in the Income Tax Act which allows taxpayers to...

Check Your PF Claim Status Online Using PF Tracking ID
Crypto Tax in India: Taxation On Cryptocurrency

The Income Tax Department (ITD) has not provided specific guidance on crypto taxes for Indian investors. However...

Check Your PF Claim Status Online Using PF Tracking ID
Internal Audit Applicability Under Companies Act, 2013

Internal audit applicability is a critical concept for companies in India, impacting various...

Check Your PF Claim Status Online Using PF Tracking ID
Difference between Private and Public Company

In the business world, two main types of companies exist: private company and public company...

Check Your PF Claim Status Online Using PF Tracking ID
New GST Rules for Rent

Ministry of Finance vide a Notification No 05/2022- Central Tax (Rate) dated 13.7.2022 has issued...

Check Your PF Claim Status Online Using PF Tracking ID
GSTR-1 and GSTR-3B Due Date Extension - New Due Dates For January 2025

The Central Board of Indirect Taxes and Customs (CBIC) has recently announced an extension...

Check Your PF Claim Status Online Using PF Tracking ID
Different Depreciation Rates under Companies & Income Tax Act

Depreciation is a key concept in finance and accounting. It helps us manage how the value of...

Check Your PF Claim Status Online Using PF Tracking ID
Form 10IA - Section 80DD Deduction

Form 10IA of the Income Tax Department must be filed by taxpayers claiming income tax deduction...

Check Your PF Claim Status Online Using PF Tracking ID
GST on Used Cars: New 18% Tax Rate Explained

The Goods and Services Tax (GST) system in India has been a significant reform in the country's...

Check Your PF Claim Status Online Using PF Tracking ID
MSME Registration - Udyam Registration

India's Gross Domestic Product (GDP) benefits significantly from the substantial...

Check Your PF Claim Status Online Using PF Tracking ID
Section 43B(h) - New MSME 45 Days Payment Rule

The Finance Act, 2023 introduced the MSME 45-day payment rule under Section 43B(h) of the Income Tax Act...

Check Your PF Claim Status Online Using PF Tracking ID
Direct Tax Vivad Se Vishwas (DTVSV) Scheme, 2024

The Direct Tax Vivad Se Vishwas (DTVSV) Scheme, 2024, was announced by Union Finance Minister...