With reference to Pradhan Mantri Vaya Vandana Yojana (PMVVY) which is a pension scheme exclusively for senior citizens aged 60 years and above, consider the following statements.
- Senior citizens will get a market dependent rate of interest.
- National Securities Depository Limited (NSDL) has been given the sole privilege to operate the scheme.
- It is exempted from goods and services (GST) tax.
- The scheme offers loan to senior citizens.
- It does not allow for premature exit.
Select the correct answer using the codes below.
1, 2 and 5 only
Incorrect Answer2, 3 and 4 only
Incorrect Answer3 and 4 only
Correct Answer1, 2, 3, 4 and 5
Incorrect AnswerExplanation:
Statement 1: Under this scheme, senior citizens will get a guaranteed interest of 8% for 10 years depending upon the investment made by them.
Statement 2: Life Insurance Corporation of India (LIC) has been given the sole privilege to operate the scheme. It can be purchased offline as well as online through LIC.
Statement 4: The scheme also offers loan up to 75% of the purchase price after 3 policy years (to meet the liquidity needs). Loan interest will be recovered from the pension instalments and loan will be recovered from claim proceeds.
Statement 5: The scheme allows for premature exit for the treatment of any critical terminal illness of self or spouse.
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By: Pradeep Kumar