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PFRDA (Pension Fund Regulatory and Development Authority) is looking at ways for the minors to be able to open an account under the National Pension Scheme (NPS). The authority will also scrutinize the legal procedures and examine the legal aspects which are associated with the matter.
On the matter, Hemant Contractor, Chairman of PFRDA said
He also added that there are legal procedures involved for allowing minors to open such an account is concerned and the PFRDA is looking at ways to sort it out.
When asked about the time – span needed to have some light on the matter he said, PFRDA will forward this matter to the finance ministry once the internal discussion is done.
Further, he said
National Pension Scheme or NPS is a contribution pension scheme which is administered and regulated by the Pension Fund Regulatory and Development Authority (PFRDA) which is a body created by an act of Parliament. This scheme offers a large variety of investment options to its employees. And the main objective of the scheme is to lower the liabilities of the Government of India with regards to total pension as well as to ensure that the country’s citizens would earn a stable income following their retirement along with helping them earn decent returns on their investments.
And NPS is designed for the government as well as the private sector employee. And on the other hand, APY (Atal Pension Yojana) mainly caters to those belongs to the unorganized sector.
According to the sources, the complete subscriber base of the pension regulator was 1.81 crore as on 31st October this year. And there were 1.54 crore subscribers at the end of the fiscal ended March 2017.
Government’s flagship program Aadhaar is surrounded by many privacy issues. Recently, UIDAI (Unique Identification Development Authority of India) introduced a new concept of ‘Virtual ID’ which Aadhaar card holders can generate from its website and give for various purposes which include SIM verification, instead of sharing the actual 12 – digit biometric ID.
By opting this method, users can refrain themselves from sharing their Aadhaar number at the time of authentication.
Now, for any kind of verification process 12 digit Aadhaar number is needed. However, once ‘Virtual ID’ comes into the play, which would be a random 16 – digit number together with biometrics of the users would give any authorized agency like a mobile company, limited details like name, address and photograph, which are enough for any verification.
UIDAI official confirmed that a user can generate as many virtual Ids he wishes as upon generating a new ID, the older one automatically gets cancelled.
Another measure that has been introduced by UIDAI along with ‘Virtual ID’ is ‘limited KYC’ (Know Your Customer) under which it will only provide need-based or limited details of a user to an authorised agency that is providing a particular service, for example, a telecom.
It is also important to note that a virtual ID is not ‘permanent’ like Aadhaar number; it will be a temporary 16 – digit number which will be mapped to a person’s Aadhaar number which can be cancelled or revoked any time. The Aadhaar issuing body will start accepting it from March 1, 2018.
From June onwards it will be compulsory for all agencies that undertake authentication to accept the Virtual ID from their users.
Agencies those who will not adapt to this new system by the given deadline will have to face financial obstruction.
UIDAI has taken this move in order to strengthen the privacy and security of Aadhaar data that comes amid heightened concerns around the collection and storage of personal and demographic data of individuals.
Recently back, Supreme Court has passed a historic judgement that Right to Privacy is a fundamental right guaranteed under Article 21 of the Indian Constitution.
To read more about the verdict you can also read https://rupeenomics.com/verdict-aadhaar-right-privacy-case/
The users will have to visit the official website of UIDAI in order to generate their Virtual ID which will be valid for a defined of time, or till the user decides to change it.
According to the UIDAI, agencies that undertake authentication would not be allowed to generate the Virtual ID behalf of Aadhaar holder.
As many as 119 crores biometric identifiers have been issued so far and Aadhaar is required as an identity proof of residents by various government and non-government entities.
For instance, the government has made it mandatory for verifying bank account and PAN to weed out black money and bring unaccounted wealth to book. The same for SIM has been mandated to establish the identity of mobile phone users.
PMVVY – Pension scheme Launched for senior citizen with 8% rebate Pradhan Mantri Vaya Vandhan Yojana (PMVVY) was earlier announced by PM Narender Modi and this much-awaited scheme finally came into being on 21st July 2017.
The Government launched this new pension scheme exclusively for the senior citizens in the 2017-18 Union Budget. Under which the policy will provide a guaranteed return of 8% for 10 years. Finance Minister Arun Jaitley said PMVVY will provide a respectable rate of return to senior citizens at a time when interest rates will fall globally.
— Ministry of Finance (@FinMinIndia) July 21, 2017
Highlights of the PMVVY scheme
- The scheme is available exclusively for the senior citizens aged 60 years and above which is available from May 4, 2017, to May 3, 2018.
- The scheme assures pension based on a guaranteed return of 8% which is equivalent to 8.30% per annum for 10 years with an option to opt for the pension on a monthly/quarterly/half-yearly or on annual basis.
- Through Life Insurance Corporation (LIC) the scheme can be purchased online as well as offline in the current financial year.
- The pension shall be through National Electronic Funds Transfer (NEFT) or Aadhaar enabled payment system.
- The first installment of pension shall be paid after 1 year, 6 months, 3 months or 1 month from the date of purchase of the same depending on the mode of pension payment i.e. yearly, half-yearly, quarterly or monthly respectively.
- As a part of the plan, the scheme can be purchased by making a one-time payment.
If a policyholder is not satisfied with the “Terms and Conditions” of the policy, he/she may return the policy to the Corporation within 15 days and 30 days if this policy is purchased online from the date of receipt of the policy with valid reason.
- This scheme is flexible as the subscribers can loan up to 75% of the purchase price after 3 years of the policy. Loan interest shall be recovered from the pension installments and the loan to be recovered from loan proceeds.
- PMVVY is also exempted from service tax or GST.
- One can also exit from the scheme in a premature state with a valid reason of terminal illness of the pensioner or the spouse. In that case, 98% of the purchase price will be refunded.
Investment Scheme of PMVVY
There is a minimum and maximum limit for investment under PMVVY. The amount varies according to the pension payment mode chosen.
- The return guaranteed and the actual interest earned shall be subsidized by the Centre and reimbursed to LIC.
- Under the scheme, if the pensioner lives till the end of the policy term of 10 years, he/she will be paid the purchase price along with the final pension installment.
- In the case of the death of the pensioner during the policy term, the purchase price will be paid to the beneficiary.
As the senior citizens want no risk investment and they want a non- fluctuating and reasonable rate of return because they have not gainfully employed at the age, this scheme is beneficial to them.
This scheme takes the Government one step closer to provide social security to its citizens.
The India’s largest Private Bank ICICI Bank launches a digital service that allows the customers to open PPF Account through Internet Banking or Mobile Banking. Adopting this new digital facility will ease up the process and will reduce the confusion of the submission of the paper documents.
|Some Relevant Links|
|ICICI Bank Credit Card Customer Care Number||Click Here|
|Link Aadhaar With ICICI Bank Account||Click Here|
|ICICI Bank IFSC Code||Click Here|
The customers now no longer have to visit the bank branch and wait in the queue and submit the physical documents to open a PPF Account. They can now do it anytime, anywhere using the bank’s digital channels of Internet and Mobile Banking.
The bank said that it is a first lender in the Country to introduce a complete digital and paperless procedure for opening a PF Account. This facility is completely available online (24*7) and on all days. The customers have to log in to their Internet Banking or Mobile Banking for applying for a PPF Account.