The government’s 8 per cent pension scheme for senior citizens, called Pradhan Mantri Vaya Vandana Yojana (PMVVY), is open for subscription. LIC operates the scheme. Under the PMVVY scheme, senior citizens get a guaranteed 8 per cent interest rate for 10 years, at a time when overall interest rate in the financial system is on the decline.
The shortfall owing to the difference between the interest guaranteed and the actual interest earned and the expenses relating to administration will be subsidised by the government of India and reimbursed to LIC.
