New Delhi,May 26(HS)The modified pension scheme for senior citizens launched by Life Insurance Corporation has become operational.Citizens above 60 can benefit from the scheme.
The online and offline sales began on Tuesday(today) .It will be available for three years,up to March 31,2023.
This social security scheme,named, Pradhan Mantri Vaya Vandana Yojana,was approved by the Union cabinet earlier this month.
It can be only operated by the LIC. Private players have been kept away. It is as a non-linked, non-participating, pension scheme subsidised by the Centre.
The policy has 10-year term.For policies sold during the first financial year,2020-21, the scheme will provide an assured rate of return of 7.40 per cent per year payable monthly (which is equivalent to 7.66 per cent per annum) for the entire duration of 10 years, an LIC note said.