Q. Consider the following statements regarding the “Pradhan Mantri Vaya Vandana Yojana (PMVVY)”:
1. Minimum age for joining the scheme is 55 years.
2. Policy term for the scheme is 20 years.
3. It is exempted from GST.
Which of the statements given above is/are correct?

[A] 1 only

[B] 1 and 2 only

[C] 2 only

[D] 3 only

Answer: D

Pradhan Mantri Vaya Vandana Yojana (PMVVY) is a Pension Scheme announced by the Government of India exclusively for the senior citizens aged 60 years and above which was available from 4th May, 2017 to 31st March, 2020.  

  • The scheme is now extended up to 31st March, 2023 for a further period of three years beyond 31st March, 2020. 
  • Pension is payable at the end of each period, during the policy term of 10 years, as per the frequency of monthly/ quarterly/ half-yearly/ yearly as chosen by the pensioner at the time of purchase. 
  • The scheme is exempted from GST. 
  • Loan up to 75% of Purchase Price shall be allowed after 3 policy years (to meet the liquidity needs).  
  • Loan interest shall be recovered from the pension installments and loan to be recovered from claim proceeds. 
  • On death of the pensioner during the policy term of 10 years, the Purchase Price shall be paid to the beneficiary. 

Source: The Hindu