September 12, 2019

National Pension Scheme for Traders and Self Employed Persons Yojana – A GIMMICK

Prime Minister Mr.Narendra Modi today launched a pension scheme called National Pension Scheme for Traders and Self Employed Persons Yojana.

National Pension Scheme for Traders and Self Employed Persons Yojana

This particular NPS is meant for traders and Self Employed Persons. It is I think in line with APY (Atal Pension Yojana) which was launched for lower cadre people.

Let us see the features of this National Pension Scheme for Traders and Self Employed Persons Yojana.

Eligibility for National Pension Scheme for Traders and Self Employed Persons Yojana

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

# Entry age between 18 to 40 years

# Annual turnover should not exceed Rs 1.5 crore

# He or She should possess the Aadhaar Card.

# He or She must have a savings bank account with IFSC code.

Do remember that you are not covered under the National Pension Scheme for Traders and Self Employed Persons Yojana if are-

# Covered under any National Pension Scheme contributed by the Central Government or member of EPFO/NPS/ESIC

# An income taxpayer

# Enrolled under Pradhan Mantri Shram Yogi Maandhan Yojana or Pradhan Mantri Kisan Maandhan Yojana administered by the Ministry of Labour & Employment or Ministry of Agriculture & Farmers Welfare, respectively.

Features of National Pension Scheme for Traders and Self Employed Persons Yojana

It is a voluntary and contributory pension scheme under which the subscriber would receive a minimum assured pension of Rs 3000/- per month after attaining the age of 60 years and if the subscriber dies, the spouse of the beneficiary shall be entitled to receive 50% of the pension as a family pension. Family pension is applicable only to a spouse.

  • On the maturity of the scheme, an individual will be entitled to obtain a monthly pension of Rs. 3000/-. The pension amount helps pension holders to aid their financial requirements.
  • The scheme is a tribute to the workers in the Unorganized sectors who contribute around 50% of the nation’s Gross Domestic Product (GDP).
  • The applicants between the age group of 18 to 40 years will have to make monthly contributions ranging between Rs 55 to Rs 200 per month till they attain the age of 60.
  • Once the applicant attains the age of 60, he/ she can claim the pension amount. Every month a fixed pension amount gets deposited in the pension account of the respective individual.
  • The matching contribution will be payable by Government Of India.
  • Assured monthly pension of Rs.3,000.
  • It is a voluntary and contributory pension scheme.

Benefits of National Pension Scheme for Traders and Self Employed Persons Yojana

As I said above, once you attain the age of 60 years, you start to receive the monthly pension till the death. However, there are other features also, which you have to look into.

# Benefits to the family on the death of an eligible subscriber

During the receipt of a pension, if an eligible subscriber dies, his spouse shall be only entitled to receive 50% of the pension received by such eligible subscriber, as family pension and such family pension shall be applicable only to the spouse.

# Benefits on disablement

If an eligible subscriber has given regular contributions and become permanently disabled due to any cause before attaining his age of 60 years, and is unable to continue to contribute under this Scheme, his spouse shall be entitled to continue with the Scheme subsequently by payment of regular contribution as applicable or exit the Scheme by receiving the share of contribution deposited by such subscriber, with interest as actually earned thereon by the Pension Fund or the interest at the savings bank interest rate thereon, whichever is higher.

# Benefits on Leaving the Pension Scheme

  1. In case an eligible subscriber exits this Scheme within a period of less than ten years from the date of joining the Scheme by him, then the share of contribution by him only will be returned to him with savings bank rate of interest payable thereon.
  2. If an eligible subscriber exits after completion of a period of ten years or more from the date of joining the Scheme by him but before his age of sixty years, then his share of contribution only shall be returned to him along with accumulated interest thereon as actually earned by the Pension Fund or the interest at the savings bank interest rate thereon, whichever is higher.
  3. If an eligible subscriber has given regular contributions and died due to any cause, his spouse shall be entitled to continue with the Scheme subsequently by payment of regular contribution as applicable or exit by receiving the share of contribution paid by such subscriber along with accumulated interest, as actually earned thereon by the Pension Fund or at the savings bank interest rate thereon, whichever is higher
  4. After the death of the subscriber and his or her spouse, the corpus shall be credited back to the fund.

National Pension Scheme for Traders and Self Employed Persons Yojana-Contribution Chart

Below is the investment chart by an individual. As I said above, an equal amount of contribution is also payable by the central government.

National Pension Scheme for Traders and Self Employed Persons Yojana-Contribution Chart

How to apply for the National Pension Scheme for Traders and Self Employed Persons Yojana?

Let me now share with you the procedure to apply for the National Pension Scheme for Traders and Self Employed Persons Yojana.

# Those who are interested to invest have to approach the 3.50 lakh Common Service Center (CSCs) across the country. One can also enroll online by visiting the website of National Pension Scheme for Traders and Self Employed Persons Yojana.

# You have to go with Aadhaar Card and Savings/Jan Dhan Bank Account details along with IFSC Code ( Bank Passbook or Cheque Leave/book or copy of bank statement as evidence of bank account).

# Initial contribution amount in cash will be made to the Village Level Entrepreneur (VLE).

# The VLE will key-in the Aadhaar number, Name of subscriber and Date of birth as printed on aadhaar card for authentication.

# The VLE will complete the online registration by filling up the details like Bank Account details, Mobile Number, Email Address, GSTIN, Annual Turnover Income, Spouse (if any) and Nominee details.

# Self-certification for eligibility conditions will be done.

# System will auto calculate monthly contribution payable according to age of the Subscriber.

# Subscriber will pay the 1st subscription amount in cash to the VLE.

# Enrollment cum Auto Debit mandate form will be printed and will be further signed by the subscriber. VLE will scan the same and upload it into the system.

# A unique Vyapari Pension Account Number (VPAN) will be generated and Vyapari Card will be printed.

National Pension Scheme for Traders and Self Employed Persons Yojana – Should you invest?

# It is completely an eyewash product from the central government. There is already a product like NPS and APY. They just added the same feature of APY and given a different name to lure a few individuals.

# In one way they say GSTIN is required only for those with turnover above Rs. 40 lakhs. However, the eligibility for applying to this scheme is that you must not be a taxpayer. With turnover above Rs.40 lakhs, whether one will not be a taxpayer? Strange!!

# Rs.3,000 monthly pension when you turn to be 60 years of age!! The government failed to understand that even a poorest of poor can’t survive NOW with a monthly income of Rs.3,000. Then forget about the Rs.3,000 benefit what you or I will receive during our 60 years of age. Maybe this Rs.3,000 at that time equal to one vegetable item rate.

# Stay away from this product as such product even though lured by the government to lure individuals, but in no way it benefits.

# This product again like other products failed to address inflation.

# I am repeating again, when there is a similar product like APY, then why this GIMMICK??

Refer the related posts:-

4 Comments

  1. Sir,

    I am 50yr old and employed in unorganized sector,
    What are the better alternatives of “immediate annuity plan” for monthly pension for me after age of 60.
    Or you feel buying a annuity plan will be a good option.

    Reply
    • Dear Anil,
      Immediate Annuity, SCSS and PMVVY (as of now not eligible for you) and Monthly MIS.

      Reply
  2. What else do you expect from a jumla govt?

    Reply

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