The trader’s pension scheme is a social security scheme, approved by the Narendra Modi led NDA government, which would benefit 3 crore traders across India. The scheme is a part of the Prime Minister’s vision to encompass the business sector under a social security program. The main objective of the scheme is to benefit small shopkeepers and businessmen in SMEs and offer financial security during old age.
The trader’s pension scheme was launched on 31st May 2019 and is yet to be implemented. The subscribers to this scheme are promised a monthly pension of Rs 3,000 once they reach the age of 60. The contributions are decided based on factors like enrolment age and the maturity period of the scheme.
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The eligibility criteria that must be fulfilled by the applicants of the scheme are as follows:
The scheme aims to provide social security benefits to the trader community. It’s easy to avail and requires minimal documentation. The scheme is based on a self-declaration and therefore no proof of business is required. The traders can apply online through common services centre (CSC) located across India.
Common services centres are the physical access points that deliver government e-services like public utility services, social welfare schemes, healthcare, financial, educational and agricultural services. CSC is a government initiative which aims to provide online services in remote and rural areas for a digitally empowered society. CSCs can be located using the CSC locator.
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The scheme has been launched by the government of India, to bring the trader community under a social security scheme. The business community is a major contributor to the Indian economy. The scheme aims to benefit 3 crore self-employed individuals, shopkeepers, small businessmen, traders and retailers.
The interested individuals can enrol under this scheme, if they fulfil the eligibility criteria specified by the government. The subscriber has to pay a monthly premium amount. The monthly premiums will be determined based on the age of the applicant.
The central government contributes an equal amount to the pension account of the subscriber. For example, if the subscriber is 29 years of age, then he has to pay Rs 100 a month in his pension account. The central government also contributes an equal amount to the subscriber’s pension account each month.
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The scheme works just like any other pension scheme, where the amount accumulates over a pre-specified time period. The funds contributed by the subscriber as well as the central government get accumulated. The account earns interest across the tenure of the trader’s pension scheme. The funds accumulated are offered as monthly pension, when the subscriber reaches the age of 60 years.
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