It is a part of Government’s commitment for financial inclusion and social security.
The scheme will be implemented through Life Insurance Corporation of India (LIC).
It is to provide social security to elderly persons aged 60 years and above by giving an assured pension at a guaranteed rate of 8% per annum for 10 years.
The differential return, i.e., the difference between the return generated by LIC and the assured return of 8% per annum would be borne by Government of India as subsidy on an annual basis.