Pension scheme for small shopkeepers, retail traders

Mains Paper 2 : Government Scheme/Policies |

Note4Students

From UPSC perspective, the following things are important :

Prelims level : About the pension scheme

Mains level : Minimum assured pension for all


News

  • The newly-inducted Union Cabinet, in its first meeting, approved a mega pension scheme to provide a minimum assured pension of ₹3000 per month to all small shopkeepers and retail traders.

New Pension Scheme for small shopkeepers, retail traders

  • The new scheme is a part of PM universal social security programme.
  • Under the scheme, all shopkeepers, retail traders and self-employed persons are guaranteed a monthly pension amount of ₹3,000 once they attain the age of 60 years.
  • It aims at benefiting over 3 crore traders and shopkeepers.
  • The new scheme is a voluntary and contributory pension scheme on a 50:50 basis where a prescribed age-specific contribution shall be made by the beneficiary and a matching contribution by the central government.
  • For example if an individual contributes ₹100 per month, then the central government also contributes the equal amount as subsidy into subscriber’s pension account every month.

Beneficiaries of the scheme

  • All small shopkeepers and self-employed persons as well as the retail traders with GST turnover below ₹5 crore and age between 18-40 years can enroll for this scheme.
  • To make it easier for the trading community, minimal documentation is required to avail the scheme.
  • One needs the 12-digit Aadhaar card number and the bank account details for enrolling in the pension scheme.
  • Common people can enroll themselves through over 3.25 lakh common service centres spread across the country.
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