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Cabinet approves extension of ‘Pradhan MantriVayaVandanaYojana’

Posted On: 20 MAY 2020 2:26PM by PIB Delhi

The Union Cabinet, chaired by the Prime Minister Shri Narendra Modi, has given its approval to the following for the welfare of and to enable old age income security for Senior Citizens:

(a) Extension of Pradhan MantriVayaVandanaYojana (PMVVY) up to 31st March, 2023 for further period of three years beyond 31st March, 2020.

(b) To allow initially an assured rate of return of 7.40 % per annum for the year 2020-21 per annum and thereafter to be reset every year.

(c) Annual reset of assured rate of interest with effect from April 1st of financial year in line with revised rate of returns of Senior Citizens Saving Scheme (SCSS) upto a ceiling of 7.75% with fresh appraisal of the scheme on breach of this threshold at any point.

(d) Approval for expenditure to be incurred on account of the difference between the market rate of return generated by LIC (net of expenses) and the guaranteed rate of return under the scheme.

(e) Capping Management expenses at 0.5% p.a. of funds of the scheme for first year of scheme in respect of new policies issued and thereafter 0.3% p.a. for second year onwards for the next 9 years.

(f) Delegating the authority to Finance Minister to approve annual reset rate of return at the beginning of every financial year.

(g) All other terms and conditions of the scheme remaining the same.


          The minimum investment has also been revised to Rs.1,56,658 for pension of Rs.12,000/- per annum and Rs.1,62,162/- for getting a minimum pension amount of Rs.1000/- per month under the scheme.


Financial implications:

Government's financial liability is limited to the extent of the difference between the market return generated by LIC and the guaranteed return of 7.40% per annum initially for the year 2020-21 and thereafter to be reset every year in line with SCSS. The expenses on managing the scheme, are capped at 0.5% of assets under management per annum for the first year of the scheme and 0.3% p.a. for second year onwards for the next nine years. As such the expected financial liability v/ill range from an estimated expenditure of Rs. 829crore in the financial year 2023-24 to Rs. 264crore in last FY 2032-33. The average expected financial liability for the subsidy reimbursement, calculated for annuity payment on actual basis is expected to be Rs. 614 crore per year for currency of the scheme. The actual interest-gap (subsidy) would however depend upon the actual experience in terms of number of new policies issued, the quantum of investment made by subscribers, actual returns generated and the basis of annuity payment.


PMVVY is a social security scheme for senior citizens intended to give an assured minimum pension to them based on an assured return on the purchase price / subscription amount.

Pradhan MantriVayaVandanaYojana
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1 Pradhan Mantri Shram Yogi Mandhan
2 Ayushman Bharat is National Health Protection Scheme
3 Pradhan Mantri Rojgar Protsahan Yojana(PMRPY)
4 Deen Dayal Upadhyaya Grameen Kaushalya Yojana [DDU-GKY] Scheme
5 Dairy Entrepreneurship Development Scheme
6 Gramin Bhandaran Yojana
7 Nanaji Deshmukh scheme of Construction of Hostels for DNT Boys and Girls
8 Atal Pension Yojana
9 Pradhan Mantri Krishi Sinchayee Yojana
10 Pradhan Mantri Kaushal Vikas Yojana (PMKVY)
11 Deen Dayal Upadhyaya Gram Jyoti Yojana
12 National Safai Karamcharis Finance and Development Corporation (NSKFDC)
14 प्रधानमंत्री ग्रामीण आवास योजना ऑनलाइन आवेदन
15 Pradhan Mantri Bhartiya Jan Aushadhi PariYojana Kendra (PMBJPK)
16 Check your Eligibility for Ayushman Bharat Medicare Health Yojana – Pradhan Mantri Jan Arogya Abhiyaan – Ayushman Bharat Yojana
17 Pradhan Mantri Awas Yojana (PMAY)
19 RNTCP - Government TB Treatment Education & Care NSP
21 Livestock Insurance Scheme
22 Pradhan Mantri Matru Vandana Yojana (PMMVY)
23 Pradhan Mantri Adarsh Gram Yojana
24 Pradhan Mantri Kaushal Vikas Yojana (PMKVY)
25 National Career Service (NCS)
26 Sukanya Samridhi Yojana (Girl Child Prosperity Scheme)
27 How the India Post Payments Bank Differs from Post Office Savings Account
28 Assistance for Skill Development of OBCs/DNTs/EBCs (NGO Scheme)
29 Centrally Sponsored Scheme for implementation of the Protection of Civil Rights Act, 1955 and the Scheduled Castes and the Scheduled Tribes (Prevention of Atrocities) Act, 1989
30 Namami Gange - National Mission for Clean Ganga (NMCG)
31 Centrally Sponsored Scheme of Assistance to Scheduled Castes Development Corporations (SCDCs)
32 Invest 1.5Lakh/yr in PPF Scheme and get 46 lakh. Save Tax too!
33 Credit Enhancement Guarantee Scheme for the Scheduled Castes (SCs)
34 Schemes undertaken by NBCFDC for promoting Social Empowerment
35 Mid Day Meal
36 Central Sector Scheme of Assistance for Prevention of Alcoholism and Substance (Drugs) Abuse for Social Defence Services
37 National Pension System (NPS)
38 National Service Scheme (NSS)
39 Sampoorna Grameen Rozgar Yojana
40 National Scheduled Castes Finance & Development Corporation (NSFDC)
41 Special Central Assistance (SCA) to Scheduled Castes Sub Plan (SCA to SCSP)
42 Pradhan Mantri Gramin Awaas Yojana (PMGAY)
43 Mahatma Gandhi National Rural Employment Guarantee Act (MGNREGA)
44 Pradhan Mantri Jeevan Jyoti Bima Yojana
45 Crop Insurance
46 Post-Matric Scholarship to the OBC Students
47 Pradhan Mantri Ujjwala Yojana
48 National Scheme of Welfare of Fishermen
49 Standup India
50 Kasturba Gandhi Balika Vidyalaya (KGBV)
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