All That Is In Store For You In The New Version Of PMVVY

Pradhan Mantri Vaya Vandana Yojana (PMVVY) which was earlier closed on March 31, 2020, has been recently extended for another three financial years till March 2023 and is now available in a modified way.

The extension of the scheme has come as good news for senior citizens as otherwise, the interest rates seemed to be falling in a hurry. The scheme is for 10 years and the government has declared the interest rate of 7.4 per cent payable monthly i.e. 7.66 per cent per annum for the entire duration of ten years on investments made in the financial year 2020 to 2021 till March 31, 2021. The government will declare the PMVVY interest rate for investments made in the next two financial years (2021-2022 and 2022-2023) at the beginning of each financial year.

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. The scheme provides initially an assured rate of return of 7.40 per cent per annum for the present financial year and thereafter to be reset every year. The scheme is exempted from GST.

PMVVY 2020 comes with new rules

The modified PMVVY brings in reduced pension rates and will carry a lesser interest rate on the investment than before. Also, in the new version, the interest rate will keep varying depending on the financial year in which the investment is made which was not the same in the old version.

It has been reported that the annual reset of the assured rate of interest will be effective from April 1st of the financial year in line with the revised rate of returns of the Senior Citizens Saving Scheme (SCSS). For the Modified PMVVY, the maximum rate of interest is capped at 7.75 per cent at any point.

Features of PMVVY 2020

The modified version of this scheme is for those who are 60 years and above. An investor can decide on the basis of the pension amount that they want or the purchase price that they want to invest in PMVVY. The maximum investment is restricted to Rs 15 lakh per senior citizen and the maximum monthly pension is Rs 9250 per senior citizen. If both spouses are above 60, the maximum monthly pension could be Rs 18,500 in the family on an investment worth Rs 30 lakh. The pension in PMVVY is not dependant on the age of the investor.

PMVVY- Minimum and Maximum Investment

Mode of Pension: Yearly

Minimum investment (Purchase Price) : Rs 1,56,658

Maximum investment : Rs 14,49,086

Mode of Pension: Half-yearly

Minimum investment : Rs 1,59,574

Maximum investment : Rs 14,76,064

Mode of Pension: Quarterly

Minimum investment : Rs 1,61,074

Maximum investment : Rs 14,89,933

Mode of Pension: Monthly

Minimum investment : Rs 1,62,162

Maximum investment : Rs 15,00,000

PMVVY - Minimum and Maximum Pension

Minimum Pension

Rs. 1,000 per month

Rs. 3,000 per quarter

Rs.6,000 per half-year

Rs.12,000 per year

Maximum Pension

Rs 9,250 per month

Rs. 27,750 per quarter

Rs. 55,500 per half-year

Rs. 1,11,000 per year