Union Finance Minister Arun Jaitley said that Varishtha Pension Bima Yojana (VPBY) will benefit the vulnerable section of society with limited resources. The scheme will provide a monthly pension ranging from Rs 500 to Rs 5,000 per month to senior citizens of the country.
Speaking after re-launching the VPBY on the eve of the 68th Independence Day of the country, Jaitley said that VPBY is like reverse of a normal insurance policy as in case of VPBY, the beneficiary gets an income at the overall rate of 9.38 % per annum on their deposits as they are being paid on monthly basis.
Jaitley had, in his recent budget speech 2014-15, announced the revival of the pension scheme, which had been introduced earlier in 2003-04 by the then NDA Government during its last term in office, as a pension scheme for senior citizens. Over 3.16 lakh annuitants who had applied under that earlier window are being benefitted today, with pension payments ranging from a minimum of Rs 250 per month to a maximum of Rs 2000 per month, based on their subscriptions, and the associated corpus amounts to Rs 6,095 crore.
The revived scheme will be open during the window stretching from August 15, 2014 to August 14, 2015 for the benefit of citizens aged 60 years and above, and will provide financial security by ensuring regular income during their advancing years. The scheme will be administered by the LIC. The subscription to the scheme is likely to create a corpus of more than Rs. 10,000 crore, and would thus also be a significant source of resource mobilization for the development of the country.
SK Roy, Chairman, Life Insurance Corporation (LIC) of India said, "We are targeting to cover about 5 lakh senior citizens under this Scheme during the current year 2014-15." (ANI)