Aadhaar becomes mandatory for PMVVY scheme
The Finance Ministry in a notification dated December 23, 2019 has asked the senior citizens who have invested in Pradhan Mantri Vaya Vandana Yojana (PMVVY) to submit their proof of Aadhaar number or undergo Aadhaar authentication.
PMVVY is a pension scheme for senior citizens implemented through LIC of India. The scheme was announced in two versions in Union Budget 2017-18 and 2018-19. It offers assured rate of return in the range of 8-8.3 per cent depending on the mode of pension that the individual chooses.
Sanjoy Datta, Partner, Deloitte India says, “With the notification dated December 23, 2019, the government has made the Aadhaar mandatory in the PMVVY scheme at the time of investing or submission of Aadhaar number by those who have already subscribed to the scheme. Earlier, it was not mandatory to submit the Aadhaar number. The move by the government is a continuation of an on-going process of bringing transparency to financial processes and to reduce the incidence of frauds, impersonation, etc.”
According to the notification, in case the individual does not have Aadhaar number, he/she is required to enrol for Aadhaar in order to avail the benefits.
Once the enrolment for Aadhaar number is done, to avail the continued benefit, senior citizens will be required to submit – (a) Aadhaar enrolment Identification Slip and (b) any of the following documents –
a) Bank passbook or post office passbook with photo,
b) Voter Identity Card,
c) Ration Card,
d) PAN card,
e) Driving license,
g) MGNREGA Card
h) Kisan Photo Passbook
i) Certificate of identity having photo of such person issued by a gazetted person on an official letterhead
j) Any other document as specified by the department
The notification further suggests that if Aadhaar authentication fails due to poor biometrics or any other reason, then other methods for authentication must be adopted which include Integrated Risk Information system or face authentication, Aadhaar One-Time Password (OTP) or Time based password with limited time validity or verification of Aadhaar number using QR code on the physical Aadhaar card.
According to Aadhaar regulations, 2016, it is the duty of Finance Ministry to offer Aadhaar enrolment facilities for those senior citizens who have not yet enrolled for Aadhaar.
PMVVY was launched by the government on May 4, 2017 to provide an additional investment avenue to senior citizens to meet their income needs. It is a subsidised pension scheme from the Government of India. Life Insurance Corporation (LIC) is the sole operator of the scheme. Senior citizen can invest up to Rs 15 lakh in the scheme. The last date to invest in the scheme is March 31, 2020.