National Pension Scheme for traders fails to gain traction

News:The National Pension Scheme for traders also called the Pradhan Mantri Laghu Vyapari Maan-dhan Yojana has failed to gain traction among the traders.

Facts:

• The Government has set a target of 50 lakh enrolment by the end of March 2020.However,only 25,000 persons have applied so far.
• Among all states Uttar Pradesh has the highest number of registrations.
• No one has so far registered in the scheme in the states of Mizoram and Lakshadweep.
• The experts have suggested that the entry age and the premium for the scheme should be raised to encourage more traders to join the scheme.

About Pradhan Mantri Laghu Vyapari Maan-dhan Yojana:

• The National Pension Scheme for Traders and Self Employed Persons Yojana(Pradhan Mantri Laghu Vyapari Maan-dhan Yojana) is a pension scheme for shopkeepers launched in July,2019.
• Objective:The scheme assures a minimum monthly pension of ₹3000 per month to small shopkeepers, retail traders and self-employed people after attaining the age of 60 years.
• Contribution:They have to contribute to the scheme every month from the time of enrolment and till age 60 for getting the pension.The Government of India will also make a matching contribution in the subscribers’ account.
• Implementation:The Life Insurance Corporation of India (LIC) is the pension fund manager for the scheme.
• Eligibility:The scheme is available to all small shopkeepers, self-employed persons and retail traders with Goods and Services tax (GST) turnover below Rs.1.5 crore. The age limit is 18-40 years.
• However,the applicants should not be covered under the National Pension Scheme, Employees’ State Insurance Scheme and the Employees’ Provident Fund or be an Income Tax assessed.