Prandhan Mantri Laghu Vyapari Maan-dhan Yojana (PMLVMDY)

Part of: Mains GS-II – Welfare schemes for vulnerable sections of the population by the Centre and States and the performance of these schemes.

In News:

  • The centre’s pension scheme for small traders (PMLVMDY) has been notified and being introduced on trial basis from this week
  • The scheme assures a minimum monthly pension of Rs. 3,000/- month after attaining the age of 60 years
  • Who can enrol for this scheme?
    • All small shopkeepers and self-employed persons as well as the retail traders with GST turnover below Rs. 1.5 crore and age between 18-40 years
  • Potential of the Scheme?
    • The scheme would benefit more than 5 crore small shopkeepers and traders.
  • Simplified process of enrolment–  based on self-declaration as no documents are required except Aadhaar and bank account. Interested persons can enrol themselves through more than 3.25 lakh Common Service Centres spread across the country.
  • Government of India will make matching contribution in the subscribers’ account
  • LIC has been chosen as pension fund for this scheme.

Do you know?

  • Only 7.4% of the working age population in India is covered under a pension program( 65% for Germany & 31% for Brazil) according to the 2017 WEF’s report on Global Human Capital.
  • Demographically, India will transition slowly from a ‘young’ to a ‘greying’ country, where persons above the age of 60 would increase from 8.9% of the population now to 19.4% by 2050
  • Ramadorai Committee on Household finances – India is sitting on a ticking pension time bomb, whereby demographic dividend can become demographic concern
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