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Pradhan Mantri Laghu Vyapari Mandhan Yojana
Pradhan Mantri Laghu Vyapari Mandhan Yojana is a retirement programme for small business owners and retailers. After turning 60, it guarantees small business owners, retail merchants, and self-employed individuals a minimum monthly pension of Rs. 3,000 per month. From the moment of enrollment until the age of 60, they must make a monthly contribution to the plan in order to get the pension. Additionally, the Indian government would add a matching contribution to the subscribers’ accounts.
Pradhan Mantri Laghu Vyapari Mandhan Yojana in Details
The National Pension Scheme for Traders and Self-Employed Persons, A government programme called Yojana, referred to as the Pradhan Mantri Laghu Vyapari Maan-Dhan Yojana (PMLVMY), offers social security and protection against old age to small-scale business owners like merchants. Small-scale traders, retailers, and Vyaparis are included in this plan.
Vyaparis refers to people who work for themselves as retail traders, shop owners, oil mill owners, rice mill owners, commission agents, workshop owners, real estate brokers, restaurant owners, owners of small hotels, and other people with comparable occupations with an annual turnover of less than Rs. 1.5 crore.
For Vyaparis, the PMLVMY is a voluntary and contributory pension plan. After reaching the age of 60, qualified beneficiaries under the plan are required to make a monthly contribution in order to receive a pension. In addition, the government contributes an equivalent sum to this yojana. The Life Insurance Corporation of India (LIC) manages the pension funds and is in charge of paying out pension benefits.
National Pension Scheme for Traders and The Self-employed Persons (NPS)
The Pradhan Mantri Laghu Vyapari Maan-dhan Yojana, also known as the National Pension Scheme for Traders and Self-Employed Persons, is a pension programme that offers shopkeepers, retail traders, and self-employed people a monthly minimum assured income of Rs. 3000. It is a central sector programme that is voluntary and contribution-based.
The programme will begin on July 22nd, 2019. More than 3 crore small retailers and traders would profit from the programme.
Pradhan Mantri Laghu Vyapari Mandhan Yojana Eligibility
The following are the requirements to be eligible for PMLVMY benefits:
- The person must be between the ages of 18 and 40 and be a self-employed store owner, retail business owner, or Vyapari.
- Each person’s annual income cannot be more than Rs. 1.5 crore.
- The person shouldn’t be a member of the NPS, EPFO, or ESIC, or be covered by the Central Government’s National Pension Scheme; they also shouldn’t be an income tax payer.
- The applicant should not be registered under the Pradhan Mantri Shram Yogi Maandhan Yojana or the Pradhan Mantri Kisan Maandhan Yojana, respectively, run by the Ministries of Labour and Employment or Agriculture and Farmers Welfare.
- The person must have an IFSC-coded savings bank account as well as an Aadhaar card.
Pradhan Mantri Laghu Vyapari Mandhan Yojana Benefits
The recipients will be required to make a monthly contribution of between Rs. 55 and Rs. 200 till they turn 60. The amount of the contribution changes according to the beneficiaries’/subscribers’ ages. After 60 years, the beneficiaries would start receiving a basic pension of Rs. 3,000 per month.
After becoming 60 years old, the beneficiaries may submit a pension claim. The recipients’ pension accounts will receive a monthly deposit of the fixed pension amount. Beneficiaries’ spouses are entitled to a 50% annuity as a family pension after their deaths. However, only the spouse is eligible for the family pension.
Benefits on Disablement
The spouse of an eligible subscriber who has consistently paid into the PMLVMY but becomes chronically disabled before turning 60 and is unable to continue the monthly contribution has the right to carry on the program by making the regular contribution.
When they are unable to contribute, subscribers who are disabled may also leave the yojana. They leave the program by getting their contribution plus any interest accrued on their pension or at the higher interest rate offered by a savings institution.
Benefits of Leaving the Yojana
Only the contributed amount will be reimbursed to eligible subscribers who leave the PMLVMY within ten years of signing up for the scheme, at a savings bank interest rate.
Only the share of contributions made by qualified subscribers will be repaid along with interest earned by the pension fund or at the savings bank interest rate, whichever is higher, when they leave the PMLVMY ten years or more after joining but before turning 60. When eligible subscribers who have been contributing regularly to the PMLVMY pass away for any reason, their spouse has the right to carry on the yojana by making the same regular contributions.
When an eligible subscriber passes away from any reason, their spouse may withdraw from the yojana in exchange for the contribution they paid, plus any interest accrued by the pension fund or the savings bank, whichever is larger. The corpus will be credited back to the fund following the passing of the subscribers and their spouses.
Pradhan Mantri Laghu Vyapari Mandhan Yojana Implementation
A pension fund will be established by the government to carry out the plan. The pension fund management will be the Life Insurance Corporation of India (LIC). LIC will be in charge of overseeing central recordkeeping, managing the pension fund, and paying out pensions.