Finance Minister Nirmala Sitharaman in her maiden Budget speech announced that the pension benefits will be extended to 3 crore retail traders under the Pardhan Mantri Karam Yogi Maan Dhan Yojana.
Under the scheme, a key demand of the trading community, shopkeepers and retail traders will receive a guaranteed monthly pension amount of Rs 3,000 after they reach the age of 60 years. The scheme aims to benefit over 3 crore traders and shopkeepers with turnover of below Rs 1.5 crore.
To simplify the documentation process to avail the pension scheme, traders will only be required to show their 12-digit Aadhaar card number and the bank account details. Earlier, the newly formulated Modi 2.0 cabinet had approved this mega pension scheme.
The new scheme under the Pardhan Mantri Karam Yogi Maan Dhan Yojana is a voluntary and contributory pension scheme. The scheme will work on a 50:50 contribution basis where a prearranged age-specific payment shall be made by the recipient and a matching contribution by the central government.
Over 5 crore new traders are expected to join the pension scheme in the coming three years.