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Home Articles Aadhaar Made Mandatory for Subscribers of PMVVY Pension Scheme

Aadhaar Made Mandatory for Subscribers of PMVVY Pension Scheme

IndianMoney.com Research Team | Posted On Tuesday, January 28,2020, 05:42 PM

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Aadhaar Made Mandatory for Subscribers of PMVVY Pension Scheme

 

 

Enrolling under Aadhaar and linking it to bank accounts and government schemes has been made mandatory by the government. Now the Aadhaar authentication is made mandatory for PMVVY scheme as well, a pension scheme for senior citizens.

The scheme provides an assured rate of returns at 8% annually. The Indian government launched the PMVVY scheme through Life Insurance Corporation of India (LIC). As such the scheme was announced in the union budget of 2017-18 and 2018-19. However, in the budget 2018-19, the central government has increased the maximum limit to Rs. 15 lakh under the scheme.

Aadhaar Made Mandatory for Subscribers of PMVVY Pension Scheme

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The scheme can be purchased through both online and offline channels. The primary objective of the scheme is to provide senior citizens with a steady stream of income during falling interest rate regimes. The scheme is available till March 2020 for the subscription.

With the increase in the maximum purchase price, the government has made Aadhaar card mandatory for scheme subscribers. According to the notification issued by the finance ministry, “An individual eligible for receiving the benefit under the scheme shall hereby be required to furnish proof of possession of Aadhaar number (the unique 12-digit biometric identity number) or undergo Aadhaar authentication.” The notification issued by the finance ministry has been dated 23rd December and is issued under the Aadhaar Act, 2016.

See Also: Best Pension Plans In India

The notification as states that individuals who desire to avail the benefits of this scheme must possess Aadhaar card. If they do not have Aadhaar card, then they are first required to enrol under the Aadhaar before applying for the scheme. Thus KYC authentication is necessary to enrol in this scheme.

In cases where the Aadhaar authentication fails due to various reasons, the ministry’s department of financial services will make provision to help such subscribers get Aadhaar number through its implementing agency.

The subscribers can also avail the benefits of the scheme by presenting physical Aadhaar. This is only permitted in cases where biometric authentication fails due to time based-OTP or one-time password system. In such cases, the authenticity of the subscriber will be verified through the QR code printed on the physical Aadhaar (as stated in the notification).

Eligibility of the PMVVY scheme:

The Pradhan Mantri Vaya Vandana scheme is a pension scheme for senior citizens. The scheme offers guaranteed and regular pension payout at a fixed rate for tenure of 10 years. The scheme offers death benefit i.e. the return of purchase price to the nominee.

See Also: Types of Retirement Plans

Given below are the eligibility criteria that the subscriber must fulfil in order to be eligible for the PMVVY scheme:

  • The minimum age of entry is capped at 60 years
  • The maximum age of entry is not specified
  • The policy tenure is 10 years
  • Subscribers have the flexibility to choose the regularity of the payout. They can opt for monthly, quarterly, half-yearly and yearly payments.
  • The minimum pension amount is Rs. 1000 per month which translates to Rs. 12000 per annum
  • The maximum pension amount is Rs. 10,000 per month.
  • The entire family is considered when deciding the maximum pension ceiling. The family under this scheme consists of the pensioner, his/her dependents, and spouse.

How to apply for the PMVVY scheme?

Subscribers must fill up a form and provide relevant documents to subscribe to the scheme. Individuals who have already subscribed under the scheme must mandatorily link their Aadhaar card along with the scheme. The scheme can be purchased by paying a lumpsum price. However, subscribers must remember that the scheme does not offer tax benefits, unlike other pension schemes. But beneficiaries can avail loan against the scheme after three policy years. 

See Also: Retirement Planning For A Secure Retirement

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