The Union Cabinet chaired by the Prime Minister Shri Narendra Modi has given its post-facts on approval for launching of Varishtha Pension Bima Yojana 2017 (VPBY 2017).
It is a part of government’s commitment for financial inclusion and social security the Union Cabinet. It has given its post-factor approval to launch Varishtha Pension Bima Yojana 2017 (VPBY 2017) on January 24, 2017.
- The Life Insurance Corporation of India (LIC) would be the implementing body of the scheme during the current financial year.
- The scheme aims to provide social security to elderly persons aged 60 years during their old age. It also aims to secure their future in times of fall in their interest income due to uncertain market conditions.
- Under the scheme, an assured pension with guaranteed rate of return of 8% per annum would be provided for a period of ten years. Besides, the nominee would have an option for pension on a monthly / quarterly / halfyearly and annual basis.
- The differential return, i.e., the difference between the return generated by LIC and the assured return of 8% per annum would be borne by Government of India as subsidy on an annual basis.
This Varishtha Pension Bima Yojna will be beneficial for the senior citizens who are suffering from money problems. In cooperation with LIC this will reach to the people living in the remote areas.