National Pension Scheme for Traders and Self-Employed Persons, Features

The National Pension Scheme for Traders and Self-Employed Persons popularly known as Pradhan Mantri Laghu Vyapari Man-dhan Yojana is an initiative introduced by the Ministry of Labour and Employment on July 22, 2019 to provide old age protection and social security for small traders, shopkeepers, and self-employed individuals by providing a minimum monthly pension of ₹3,000 upon reaching 60 years of age and enhance financial stability for India’s informal sector.

National Pension Scheme for Traders and Self-Employed Persons Features

1. The scheme targets over 3 crore small retailers, traders, and self-employed individuals.
2. Participation of the target population is voluntary, where it requires shared financial contribution from the beneficiary and the government, managed by the Central Government.
3. The pension service will be provided of ₹3,000 per month after attaining the age of 60 years.
4. Beneficiaries contribute 50% of the monthly premium and the central government contributes the remaining 50%.
5. The scheme is managed by the Life Insurance Corporation of India (LIC).

National Pension Scheme for Traders and Self-Employed Persons Objectives

The scheme aims to ensure old-age financial security and stability for small traders and self-employed individuals by providing a minimum monthly pension of ₹3,000 after attaining 60 years of age.

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National Pension Scheme for Traders and Self-Employed Persons Eligibility Criteria

1. People who are Retail traders, shop owners, rice mill owners, commission agents, and other self-employed individuals.
2. Beneficiaries must be between the age of 18 to 40 years.
3. Annual turnover of the applicant should not exceed ₹1.5 crore.
4. Exclusions includes:
   1. Members of EPFO/NPS/ESIC.
   2. Income taxpayers.
   3. Individuals enrolled under other pension schemes like Pradhan Mantri Shram Yogi Maandhan Yojana or Pradhan Mantri Kisan Maandhan Yojana.

National Pension Scheme for Traders and Self-Employed Persons Significance

1. Acknowledges the contribution of small traders who account for nearly 50% of India’s GDP.
2. Reduces old-age financial dependence on others and ensures dignified living.
3. Simplified enrollment process, government subsidies, and active Common Service Centers network make the scheme accessible to beneficiaries across the country.

National Pension Scheme for Traders and Self-Employed Persons Application Process

People who are eligible for the National Pension Scheme for Traders and Self-Employed Persons Scheme has to follow the below mentioned steps to apply for the scheme:

Step 1: Visit the nearest CSC.

Step 2: Provide the Aadhaar card, bank details, and IFSC code.

Step 3: Pay the initial contribution amount in cash.

Step 4: The Village Level Entrepreneur (VLE) will authenticate the Aadhaar details and fill out the online registration form.

Step 5: Details such as nominee information, GSTIN (if applicable), and turnover income will be entered.

Step 6: The system will calculate the monthly contribution based on the applicant’s age.

Step 7: The Vyapari Pension Account Number (VPAN) will be generated, and a Vyapari Card will be issued.