About:

• Pradhan Mantri Vaya Vandana Yojana (PMVVY) is a Pension Scheme announced by the Government of India exclusively for the senior citizens aged 60 years and above .
• It was launched in 2017 by the Ministry of Finance to offer a guaranteed payout of pension to senior citizens at a specified rate for 10 years.
• Initially an assured rate of return of 7.40% per annum for the year 2020-21 per annum will be provided and thereafter to be reset every year in line with the Senior Citizen Savings Scheme (SCSS).
• The Finance Minister will approve an annual reset rate of return at the beginning of every financial year.
• It also offers a death benefit in the form of return of purchase price to the nominee.
• The Scheme can be purchased offline as well as online through the Life Insurance Corporation (LIC) which has been given the sole privilege to operate this Scheme.
• Aadhar has been made mandatory to avail the benefit of the scheme.

Other Features:

• Mode of pension payment:Senior citizens will have an option to get the pension in four ways — monthly, quarterly, half-yearly and yearly.
• Loans: Any individual can apply for loans after completion of three years. The maximum loan that can be granted shall be 75% of the purchase price.
• Tax benefits: The scheme is exempted from Goods and Services Tax (GST).

Why in News?

• The Union Cabinet has extended Pradhan Mantri Vaya Vandana Yojana (PMVVY) for a period of three years. This social security scheme for senior citizens will now be valid till March 2023. Previously, this scheme was open till March 31, 2020.