Aadhaar becomes mandatory for PMVVY scheme

All you need to know about the Finance Ministry notification, which stated that PMVVY will need mandatory Aadhaar linking.

Aadhaar becomes mandatory for PMVVY scheme

As per a recent notification released by the Finance Ministry on 23 December 2019, the Pradhan Mantri Vaya Vandana Yojana (PMVVY) will now be mandatorily linked with Aadhaar. Accordingly, the PMVVY policyholders will have to furnish their Aadhaar numbers or undergo Aadhaar registration. These policyholders will have to provide their Aadhaar numbers while investing in the scheme or provide the same in case of existing policies. PMVVY is a pension scheme meant for senior citizens which are operated by the Life Insurance Corporation of India.

This decision is in line with the government’s efforts to instil transparency in government schemes and its financial processes. It is expected to reduce instances of frauds and fake identities in the PMVVY scheme. To continue enjoying the benefits of the scheme, the policyholders have to submit their Aadhaar enrolment identification slip, along with one of the various documents specified under the scheme. The notification further mentions that if Aadhaar authentication fails due biometric inefficiencies alternative methods can be used, which includes Integrated Risk Information system, face authentication, one-time password, time-based password or verification using QR code. The Aadhaar regulations, 2016 has clearly indicated that the Finance Ministry must offer Aadhaar enrolment services to the senior citizens. It must be noted that the last date of investing in PMVVY scheme is 31 March 2020.

Related: Senior Citizen Savings Scheme: Why it makes a good addition to retirement planning 

What is PMVVY and why it is beneficial for senior citizens?

PMVVY is a government-initiated pension scheme launched on 4 May 2017 and the last date to invest in the scheme is 31 March 2020. It has a maximum limit of 15 lakhs and can be purchased online as well as offline through the LIC. PMVVY promises to provide regular pension income to senior citizens and insulate them from fall in interest rates. It offers an assured return of 8-8.3%, depending on the mode of pension individual chooses. Besides, it includes death benefits, maturity benefits and a free-look period.

Related: Five must-have investment instruments for retirement planning

What are the documents required while linking Aadhaar with PMVVY?

Along with the Aadhaar enrolment identification slip, the policyholder is required to furnish any one of the following documents:

  • Passbook of a bank account or post office account with the accountholder’s photo
  • Voter ID
  • Ration card
  • PAN card
  • Driving license
  • Passport
  • MGNREGA card
  • Kisan Photo Passbook
  • Identity Certificate on an official letterhead issued by a gazetted person
  • Or any other document as specified by the department

Related: Tax Benefits after Retirement 

How can payments be done towards the PMVVY scheme? 

One can buy the PMVVY scheme by paying in a lump sum. The payment is made through Aadhaar enabled payment system or NEFT. Depending on payment frequency selected, the policyholder must make the payment within 1 month, 3 months, 6 months, or 1 year from the date of the policy bought. 

How is PMVVY pension received?

The policyholder receives pension income under the PMVVY scheme on a monthly, quarterly, half-yearly or annual basis.  

Take a look at some of the other investment options that are popular among retirees.

 

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