Government to give Rs2,065 crore more to Swavalamban pension scheme

The Swavalamban Scheme is a co-contributory pension scheme under which the Central Government contributes a sum of Rs1,000 per annum in each NPS account

New Delhi: In a move that will benefit 70 lakh unorganised sector workers, the Indian government on Thursday approved an additional support of Rs2,065 crore to Swavalamban Scheme, a pension programme, and also extended the funding support to subscribers for another two years, reports PTI.

Extending funding support for implementing the scheme under the New Pension System (NPS) from present three years to five years for all subscribers enrolled during 2010-11, 2011-12 and 2012-13 has been approved, HRD and Telecom Minister Kapil Sibal told reporters after the Cabinet meeting.

The Cabinet, he said, provided an additional funding support of Rs2,065 crore to the scheme upto 2016-17 towards government's co-contribution to the subscribers and also for promotional and developmental activities. "This will benefit 70 lakh workers of the unorganised sector till 2016-17," Mr Sibal said.

Also, the exit norms of the scheme have been relaxed to enable Swavalamban subscribers to exit at the age of 50 years instead of 60 years, or a minimum tenure of 20 years, which ever is later.

In 2010-11, there were about 3.02 lakh subscribers under the scheme, whereas during 2011-12 (till March,9, 2012) there were 1,93,238 subscribers.

The Swavalamban Scheme is a co-contributory pension scheme under which the Central Government contributes a sum of Rs1,000 per annum in each NPS account opened and having a saving of Rs1,000 to Rs12,000 per annum.

The scheme is aimed at benefiting anganwadi workers, construction workers, occupational classes like weaver, fishermen, farmers and dairy workers, Mr Sibal added.

The New Pension System aims at providing retirement income to every citizen.

User

Government to issue Special Bonds worth Rs7,000 crore

The investment in the bond -- Postal Life Insurance Government of India Special Floating Rate Security 2022 -- by banks and insurance companies, however will not be reckoned as an eligible investment in government bonds for their statutory requirements

New Delhi: The government announced issue of Special Floating Rate Bond worth Rs7,000 crore.

 “The Special Bonds are being issued at par to Department of Post as of 30 March 2012, as part conversion of the frozen corpus of Post Office Life Insurance Fund (POLIF) and Rural Post Life Insurance Fund (RPOLIF),” the Finance Ministry said in a statement.

The investment in the bond -- Postal Life Insurance Government of India Special Floating Rate Security 2022 -- by the banks and insurance companies will not be reckoned as an eligible investment in government bonds for their statutory requirements, it added.

However, such investment by the insurance companies will be eligible to be reckoned as investment under 'other Approved Bonds'.

Further, the investment by the Provident Funds, Gratuity Funds, Superannuation Funds, in the bonds will be treated as an eligible investment, the ministry said.

User

Karur Vysya partners with M&M for providing auto loan

KVB’s specialised rates for bus operators, educational institutions and medium and small enterprises will help Mahindra BOP and CV product range customers

Mumbai: Private sector lender, Karur Vysya Bank (KVB) has signed a preferred financier agreement with automotive major Mahindra and Mahindra (M&M) for providing auto loans to its customers, reports PTI. In return, customers of the bank would get privileged access to certain specialised services from M&M.

“Under the agreement, M&M customers will be able to avail of vehicle finance from any of the 450-plus branches of KVB,” a bank release said.

Chief executive officer and managing director of Karur Vysya Bank, K Venkataraman, said, “KVB is expanding its operations in commercial and passenger vehicle financing. Customers of KVB will be benefited out of this tie-up since they will have privileged access to the specialised services of M&M along with provision of loans for purchase of vehicles at a comparatively low EMI.”

 M&M said that they expect good response from dealers and customers post this arrangement.  “KVB’s specialised rates for bus operators, educational institutions and medium and small enterprises will help Mahindra BOP and CV product range customers. With highly competitive schemes for car loans and commercial vehicles, we are hopeful of a good response from our dealers and customers,” Arun Malhotra, senior vice president, sales and customer care (automotive division) of M&M, said.

User

We are listening!

Solve the equation and enter in the Captcha field.
  Loading...
Close

To continue


Please
Sign Up or Sign In
with

Email
Close

To continue


Please
Sign Up or Sign In
with

Email

BUY NOW

The Scam
24 Year Of The Scam: The Perennial Bestseller, reads like a Thriller!
Moneylife Magazine
Fiercely independent and pro-consumer information on personal finance
Stockletters in 3 Flavours
Outstanding research that beats mutual funds year after year
MAS: Complete Online Financial Advisory
(Includes Moneylife Magazine and Lion Stockletter)