From UPSC perspective, the following things are important:
Prelims level: PMVVY
Mains level: Schemes & provisions for welfare of elderly persons
Aim of the scheme
- To provide social security during old age and to protect elderly persons aged 60 and above against a future fall in their interest income due to uncertain market conditions.
- The scheme enables old age income security for senior citizens through the provision of assured pension/return linked to the subscription amount based on the government guarantee to Life Insurance Corporation of India (LIC)
- The scheme provides an assured return of 8% per annum for 10 years. The differential return, i.e. the difference between 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
- The scheme is exempted from Goods and Services Tax (GST)
Senior Citizens Savings Scheme
- Senior Citizens Savings Scheme, 2014 is a deposit scheme for individuals who have attained the age of 60 years.
- However, persons retiring on superannuation or under any Voluntary Retirement Scheme (VRS) who have attained the age of 55 years and retiring defence personnel who have attained the age of 50 years can also open the account subject to certain conditions