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Pradhan Mantri Vaya Vandana Yojana (PMVVY) for Senior Citizens

by Namrata Singh, CFP & Chaitali Shah, MA (Economics)

Pradhan Mantri Vaya Vandana Yojana(PMVVY) is a pension scheme announced by the Government of India in May 2017. The scheme was launched to protect senior citizens from falling interest rates due to uncertain market conditions and to provide social security. The Scheme is subsidised by the Government of India.

Pradhan Mantri Vaya Vandana Yojana(PMVVY) allows Senior Citizens to invest up to Rs. 15 lakhs into the scheme and earn a regular pension at 7.4% p.a. Senior Citizens can invest in PMVVY at any age above 60. LIC of India has been solely authorised to operate Pradhan Mantri Vaya Vandana Yojana. The scheme can be purchased online too.

Details of the minimum and maximum pension payable as per the amount of investment are enumerated below:

Note: The scheme is exempted from Good and Service Tax (GST)

Key Benefits of Pradhan Mantri Vaya Vandana Yojana

Regular Pension: Regular pension for a policy term of 10 years.

Death Benefit: On the death of the pensioner, the purchase price will be returned to the beneficiary.

Maturity Benefit: On survival of the pensioner for the policy term of 10 years, the purchase price along with the final pension instalment shall be payable.

A retired couple above 60 years of age can invest up to INR 60 lakhs in PMVVY and SCSS put together and earn an interest rate of 7.4% p.a.

Considering the current environment where interest rates are low, products like Pradhan Mantri Vaya Vandana Yojana and Senior Citizen Savings Scheme (Kindly refer to our earlier article on Senior Citizen Savings Scheme for more details) provide Senior Citizens with an opportunity to earn higher interest rates.


Namrata Singh is a Certified Financial Planner with more than 14 years of experience in banking and wealth management. (

Chaitali Shah, MCom & MA (Economics) was a Financial Economics – Faculty at Wilson College, Mumbai (

(Please note all views are personal)

This article was first published on Desh Gujarat

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