Govt. Of India: Varishtha Pension Bima Yojana 2017 - Approved by Cabinet
2) It is aimed at providing income security to elderly persons aged 60 years and above against a future fall in their interest income due to uncertain market conditions.
The Union Cabinet chaired by the Prime Minister Shri Narendra Modi has given its post-facto approval for launching of Varishtha Pension Bima Yojana 2017 (VPBY 2017). It is a part of Government’s commitment for financial inclusion and social security.
The scheme will be implemented through Life Insurance Corporation of India (LIC) during the current financial year to provide social security during old age and protect elderly persons aged 60 years and above against a future fall in their interest income due to uncertain market conditions. The scheme will provide an assured pension based on a guaranteed rate of return of 8% per annum for ten years, with an option to opt for pension on a monthly / quarterly / halfyearly and annual basis. The differential return, i.e., the difference between the return generated by LIC and the assured return of 8% per annum would be borne by Government of India as subsidy on an annual basis.
VPBY-2017 is proposed to be open for subscription for a period of one year from the date of launch.
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Cabinet approves Short term market borrowing by NABARD for on lending to Cooperative Banks
The Union Cabinet chaired by the Prime Minister Shri Narendra Modi has given its post-facto approval for the following decisions:
i. National Bank for Agriculture & Rural Development (NABARD) will make short term borrowings at prevailing market rate of interest for approx. Rs.20,000 crore for on-lending to Cooperative Banks at 4.5% rate of interest.
ii. Additional capital of Rs.2,000 crore to be provided to NABARD for this purpose through the Union Budget. To start with, additional capital of Rs.500 crore may be released to NABARD during 2016-17 itself.
iii. Interest Subvention of about 1.8% and NABARD's administrative cost of 0.2% to be provided as per the scheme of Department of Agriculture, Cooperation & Farmers Welfare (DAC&FW). The extent of interest subvention may vary depending on the rate at which NABARD raises funds.
iv. NABARD will coordinate the conversion of operative/live KCCs into RuPay/ATM-enabled Kisan Credit Cards (KCCs) by Cooperative Banks and Regional Rural Banks (RRBs) in a mission mode.
In the light of good monsoon and expectation of increased credit demand and in order to boost agricultural production, the farmers need to be supported through Cooperative Banks, which purvey credit at their doorstep, to enable them to scale up their agricultural operation.
The approval will ensure increased availability of short term crop loans to farmers through Cooperative banks at reduced rate of interest. The conversion of operative/live KCCs into RuPay/ATM-enabled KCCs will enable easy and hassle free availability of credit and in keeping with the spirit of 'Digital' India, will facilitate digital and cashless transactions by farmers.
Varishtha Pension Bima Yojana - 2017
Here are 10 things to know about Varishtha Pension Bima Yojana 2017
1) Varishtha Pension Bima Yojana 2017 will be implemented through Life Insurance Corporation of India (LIC) during the current financial year.
2) It is aimed at providing income security to elderly persons aged 60 years and above against a future fall in their interest income due to uncertain market conditions.
3) Varishtha Pension Bima Yojana 2017 will provide an assured pension based on a guaranteed rate of return of 8 per cent for 10 years.
4) Senior citizens can opt for pension on a monthly/quarterly/half-yearly or annual basis under the Varishtha Pension Bima Yojana 2017.
5) The government will pay to LIC the differential return, which is the difference between the return generated by the insurer and the assured return of 8 per cent per cent, as subsidy on an annual basis.
6) Varishtha Pension Bima Yojana 2017 will be open for subscription for a period of one year from the date of launch.
7) The government's statement on Varishtha Pension Bima Yojana 2017 does not mention the maximum amount that can be invested under the scheme.
8) However, PM Modi in his New Year Eve's address had said that up to Rs 7.5 lakh could be invested in such a scheme. Financial planners are awaiting more details on the Varishtha Pension Bima Yojana 2017.
9) Financial planners say that with interest rate poised for further cuts in the future, the 8 per cent Varishtha Pension Bima Yojana qualifies as a good investment option for senior citizens, though some details on pre-mature withdrawal options are yet to be released. The State Bank of India or SBI currently pays 7 per cent interest rate to senior citizens on fixed deposits with maturity between 5 to 10 years. Senior Citizen Savings Scheme, which is a small savings scheme for seniors of five years, currently offers 8.5 per cent interest and the maximum cannot that can be invested is Rs 15 lakh. But overall interest rate regime heading lower, the interest rate on Senior Citizen Savings Scheme is also poised for further fall in the future.
10) Since Varishtha Pension Bima Yojana is a pension plan from the central government, the investment carries very little risk.
Varishtha Pension Bima Yojana - 2017
The Union Cabinet chaired by the Prime Minister Shri Narendra Modi has given its post-facto approval for launching of Varishtha Pension Bima Yojana 2017 (VPBY 2017). It is a part of Government’s commitment for financial inclusion and social security.
The scheme will be implemented through Life Insurance Corporation of India (LIC) during the current financial year to provide social security during old age and protect elderly persons aged 60 years and above against a future fall in their interest income due to uncertain market conditions. The scheme will provide an assured pension based on a guaranteed rate of return of 8% per annum for ten years, with an option to opt for pension on a monthly / quarterly / halfyearly and annual basis. The differential return, i.e., the difference between the return generated by LIC and the assured return of 8% per annum would be borne by Government of India as subsidy on an annual basis.
VPBY-2017 is proposed to be open for subscription for a period of one year from the date of launch.
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Cabinet approves Short term market borrowing by NABARD for on lending to Cooperative Banks
The Union Cabinet chaired by the Prime Minister Shri Narendra Modi has given its post-facto approval for the following decisions:
i. National Bank for Agriculture & Rural Development (NABARD) will make short term borrowings at prevailing market rate of interest for approx. Rs.20,000 crore for on-lending to Cooperative Banks at 4.5% rate of interest.
ii. Additional capital of Rs.2,000 crore to be provided to NABARD for this purpose through the Union Budget. To start with, additional capital of Rs.500 crore may be released to NABARD during 2016-17 itself.
iii. Interest Subvention of about 1.8% and NABARD's administrative cost of 0.2% to be provided as per the scheme of Department of Agriculture, Cooperation & Farmers Welfare (DAC&FW). The extent of interest subvention may vary depending on the rate at which NABARD raises funds.
iv. NABARD will coordinate the conversion of operative/live KCCs into RuPay/ATM-enabled Kisan Credit Cards (KCCs) by Cooperative Banks and Regional Rural Banks (RRBs) in a mission mode.
In the light of good monsoon and expectation of increased credit demand and in order to boost agricultural production, the farmers need to be supported through Cooperative Banks, which purvey credit at their doorstep, to enable them to scale up their agricultural operation.
The approval will ensure increased availability of short term crop loans to farmers through Cooperative banks at reduced rate of interest. The conversion of operative/live KCCs into RuPay/ATM-enabled KCCs will enable easy and hassle free availability of credit and in keeping with the spirit of 'Digital' India, will facilitate digital and cashless transactions by farmers.