Pradhan Mantri Laghu Vyapari Maan-Dhan Yojana

Updated on: Jul 30th, 2022 - 10:50:07 AM

6 min read

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The National Pension Scheme for Traders and Self Employed Persons Yojana, also known as the Pradhan Mantri Laghu Vyapari Maan-Dhan Yojana (PMLVMY), is a government scheme that provides old age protection and social security for small-scale traders and retailers. Under this scheme, the small-scale traders, retailers and Vyaparis.

Vyaparis means individuals who are self-employed and are working as retail traders, shop owners, oil mill owners, rice mill owners, commission agents, workshop owners, brokers of real estate, restaurants, owners of small hotels, and other individuals with similar occupations whose annual turnover does not exceed Rs.1.5 crore. 

The PMLVMY is a contributory and voluntary pension scheme for Vyaparis. The eligible beneficiaries under the scheme must give a monthly contribution to receive a pension after attaining 60 years. The government also provides an equal amount as a contribution for this yojana. The Life Insurance Corporation of India (LIC) acts as the pension fund manager and is responsible for the disbursement of pension amounts.

Eligibility Criteria of the PMLVMY Yojana

The eligibility criteria to obtain benefits of the PMLVMY are as follows:

  • An individual must be a self-employed shop owner, retail owner or Vyapari.
  • The individual must be between 18 to 40 years.
  • The annual turnover of the individuals should not exceed Rs.1.5 crore. 
  • The individual should not be covered under the National Pension Scheme contributed by the Central Government or member of the NPS, EPFO or ESIC.
  • The individual should not be an income taxpayer.
  • The individual should not be enrolled under the Pradhan Mantri Shram Yogi Maandhan Yojana or the Pradhan Mantri Kisan Maandhan Yojana administered by the Ministry of Labour and Employment or Ministry of Agriculture and Farmers Welfare, respectively.
  • The individual should have an Aadhaar card and a savings bank account number with IFSC.

Benefits of the PMLVMY Yojana

Pension benefits

The beneficiaries will have to contribute a sum ranging from Rs.55 to Rs.200 every month until they attain 60 years. The contribution sum varies as per the age of the subscribers/beneficiaries. The beneficiaries will receive a minimum pension of Rs.3,000 per month after 60 years.

The beneficiaries can claim the pension after attaining 60 years. The fixed pension amount will be deposited every month in the pension account of the beneficiaries. Upon the beneficiaries’ death, their spouse is entitled to receive a 50% pension as a family pension. However, the family pension is provided only to the spouse.

Benefits on disablement

When eligible subscribers have regularly contributed to the PMLVMY but become permanently disabled before attaining 60 years and cannot continue the monthly contribution, their spouse is entitled to continue the scheme by paying the regular contribution.

The disabled subscribers can also exit the yojana when they cannot contribute. They exit the yojana by receiving the contribution deposited by them with interest earned on the pension or at the savings bank interest rate, whichever is higher.

Benefits of leaving the yojana

When eligible subscribers exit the PMLVMY within ten years of joining the yojana, only the contributed amount will be returned to them with a savings bank interest rate.

When eligible subscribers exit the PMLVMY after completion of ten years or more from the date of joining but before attaining 60 years, only the share of contribution will be returned along with the interest as earned by the pension und or at the savings bank interest rate, whichever is higher.

When eligible subscribers have regularly contributed to the PMLVMY but die due to any cause, their spouse is entitled to continue the yojana by paying the regular contributions. 

When eligible subscribers die due to any cause, their spouse can exit the yojana by receiving the contribution paid by such subscribers along with interest earned by the pension fund or the savings bank interest rate, whichever is higher.

After the death of the subscribers and their spouses, the corpus will be credited back to the fund.

PMLVMY Application Process

Following are the steps to apply for the PMLVMY:

Step 1: The interested persons should visit the nearest CSC (Common Services Centre).

Step 2: The interested persons should have the following documents for enrollment:

  • Aadhaar card
  • Jan Dhan or savings bank account details along with IFSC code (Bank passbook, bank statement or cheque leave/book as evidence of bank account)

Step 3: The eligible subscriber should pay the initial contribution in cash to the Village Level Entrepreneur (VLE).

Step 4: The VLE will enter the details, such as the Aadhaar number, beneficiary name, and date of birth, for authentication.

Step 5: The VLE will do the online registration and fill up the details like Mobile Number, Bank Account details, Email Address, Annual Turnover Income, GSTIN, Spouse (if any) and Nominee details. 

Step 6: The subscriber should do the self-certification for eligibility conditions.

Step 7: The system will calculate the monthly contribution payable according to the beneficiary’s age.

Step 8: The beneficiary will have to pay the first subscription to the VLE.

Step 9: The beneficiary should sign the enrollment cum auto-debit mandate form. The VLE will scan the mandate form and upload it to the system.

Step 10: A unique Vyapari Pension Account Number (VPAN) will be generated, and a Vyapari card will be printed.

The Pradhan Mantri Laghu Vyapari Maan-Dhan Yojana is a social security scheme that provides pensions to its subscribers. It helps the small traders, retailers and Vyaparis by providing pensions to them after they attain 60 years. It offers financial security for the Vyaparis in their old age.

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