(The Gist of PIB) Cabinet clears pension scheme for traders [JUNE-2019]

    (The Gist of PIB) Cabinet clears pension scheme for traders [JUNE-2019]

Cabinet clears pension scheme for traders

• India has a rich tradition of trade and commerce. Our traders continue to make a strong contribution to India’s economic growth.
• In a decision that will benefit the trading community, the Union Cabinet, chaired by Prime Minister Shri Narendra Modi has approved a new scheme that offers pension coverage to the trading community.
• This is a part of the Prime Minister’s vision to provide a robust architecture of universal social security.

How the scheme works:

• Under this scheme all shopkeepers, retail traders and self-employed persons are assured a minimum monthly pension of Rs. 3,000/- month after attaining the age of 60 years.
• All small shopkeepers and self-employed persons as well as the retail traders with GST turnover below Rs. 1.5 crore and age between 18-40 years, can enrol for this scheme. The scheme would benefit more than 3 crore small shopkeepers and traders.
• The scheme is based on self-declaration as no documents are required except Aadhaar and bank account. Interested persons can enrol themselves through more than 3,25,000 Common Service Centres spread across the country.
• The Government of India will make matching contribution in the subscribers’ account. For example if a person with age of 29 years contributes Rs. 100/- month, then the Central Government also contributes the equal amount as subsidy into subscriber’s pension account every month.

Delivering a major promise on Day 1:

• By imitating a pension architecture for the trading community, the Prime Minister and his team have fulfilled a major promise made to the people of India. Shri Modi had spoken about the need of proving pension for traders, that would assure them a life of dignity and financial security especially when during their old age.
• This decision can also be seen in the light of several other steps taken for the welfare of traders, small and medium business.
• The GST underwent significant simplification after taking feedback of the trading community. In the same way, Mudra loans gave wings to the entrepreneurial zeal of young India. Loans upto Rs. 1 crore are now easily available.
• These, and many more efforts would help the trading community.

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Courtesy: PIB