Programmes and Policies for Elderly

In India, the elderly population is estimated to reach 30 crore by 2050. There a many
schemes that the government of India has in place for senior citizens. In this article, we
list out five of them for you or the elderly in your lives.

Recent initiatives by government

 Integrated Programme for Older Persons (IPOP) ...
 Rashtriya Vayoshri Yojana (RVY) ...
 Indira Gandhi National Old Age Pension Scheme (IGNOAPS) ...
 Varishtha Pension Bima Yojana (VPBY) ...
 The Pradhan Mantri Vaya Vandana Yojana. ...
 Vayoshreshtha Samman.

Senior Citizens Saving Scheme (SCSS)

• This is a government-backed savings instrument offered to Indian residents above the

age of 60.
• The deposit matures in five years and can be extended once for an additional three year
period.
• One can avail this scheme either through a public/private bank or through the Indian
Post office.
• interest rate for January to March 2019 has been set at 8.6 per cent and is reviewed by
the government every quarter.
• The accrued interest is compounded and credited quarterly.
• A minimum deposit of Rs 1,000 and a maximum of Rs 15 lakh can be made via this
scheme.
• Investments made under this scheme are eligible for tax exemptions.
• If, for some reason, you wish to withdraw money before the scheme matures, then there
will be a penalty charge of 1.5 percent of deposit amount deducted in case the withdrawal
is before two years, and 1 per cent after two years.

Pradhan Mantri Vaya Vandana Yojana (PMVVY)

• The scheme is managed by the Life Insurance Corporation of India (LIC).

• Under this scheme the beneficiary is assured of 8 per cent per annum return on the
deposit. The ‘pension’, or the return will be payable for a period of 10 years and the
beneficiary has the option of choosing the tenure of payment.
• One can subscribe to this until 30 March 2020.
• Under this scheme there is a cap on the amount that can be invested, an individual can
invest upto Rs 15 lakh and a minimum of Rs 1,000.
• The scheme has no tax benefits.
• In case of death of the beneficiary before the completion of the tenure, the principal
amount will be credited to the nominated beneficiary’s account.
• This scheme also has the provision for a premature exit in case of critical illness of self
or spouse. In such a case 2 per cent will be withheld as a penalty charge

This is one of the most popular senior citizen pension schemes in India. Designed for
senior citizens above 60 years of age, the policy term of this Prime Minister Senior
Citizen Scheme extends to ten years. The pensioner can choose the frequency of the
payment - monthly/quarterly/half-yearly/annually. You can earn interest of 8% per
annum over this scheme. The minimum and maximum capping of pension are Rs. 3,000
per month and 10,000 per month, respectively.

Varishta Pension Bima Yojana

• Launched by the LIC, this scheme provides its beneficiaries with a steady 8 per cent per
annum interest rate for a period of 10 years.
• Unlike other schemes, one doesn’t have to go through any medical check-ups to avail
its benefits.
• This scheme, however, has a lock in period of 15 years.
• If the policyholder is diagnosed with a critical illness then one can make an early
withdrawal.
• Under this scheme the beneficiary will also get tax exemptions.
• If for some reason you are not satisfied with the scheme then you have 15 days from the
start date to cancel it.
• You can opt to get the pension payout monthly, quarterly, half-yearly or annually.
• This is a single premium policy and the premium will vary depending on the pension
amount you want.
• Single premium of Rs 6,66,665 enables the policyholder to receive Rs 5,000 per month
and an annual premium of Rs 6,39,610 affords the pensioner a sum of Rs 60,000 per
annum

Rashtriya Vayoshri Yojana (RVY)

Launched in 2017 by the Ministry of Social Justice & Empowerment of Government of

India.
• This scheme is only available to those senior citizens who are below poverty line, that
is, are BPL cardholders.
• Senior citizens suffering from low vision, hearing impairment, loss of teeth, and
locomotor disability will be provided with assisted-living devices.
• A committee chaired by the Deputy Commissioner or District Collector with the help of
the State governments identifies those who are eligible for this scheme.
• 30 per cent of the beneficiaries from each district will be women.
• Walking sticks, elbow crutches, walkers, hearing aids, wheelchairs, and artificial
dentures are some of the aids that are provided under this scheme.
• The scheme will be implemented in 260 districts and benefit almost 5 lakh plus
beneficiaries in 2019-2020.

Indira Gandhi National Old Age Pension Scheme

• Introduced in 2007 by the Ministry of Rural Development of India, this scheme is

popularly known as National Old Age Pension Scheme (NOAPS).
• This scheme provides social assistance benefits to senior citizens, widows, and those
with disabilities.
• Under this scheme the beneficiary will receive a monthly pension.
• The interesting part about this scheme is that it is a non-contributing scheme, which
means that the beneficiary does not have to contribute any amount to receive the pension.
• The beneficiary must be a BPL cardholder and have no regular source of financial
support from any other source.
• If the beneficiary is between 60 to 79 years old, a monthly amount of Rs 200 is given
and for those above 80 years, a sum of Rs 500.
• The pension amount will be credited to the bank account as furnished by the beneficiary
or post office account.

Integrated Programme for Older Persons (IPOP)

This programme is run by the Ministry of Social Justice and Empowerment. Under this
programme, grants are given for running and maintenance old age homes, day care
centres, mobile medicare units, multi-facility care centre for older widows, etc. The main
objective of the scheme is to improve the quality of life of older persons by providing
basic amenities like shelter, food, medical care and entertainment opportunities, etc.
Implementing agencies eligible for assistance under the scheme are panchayati raj
institutions/local bodies, non-governmental voluntary organisations, etc. Funds under the
scheme of IPOP are not released to the states, but released to the implementing agencies
like NGOs, etc.

In the year 2016-17, a total of 396 old age homes were given grants under this scheme.
The total grant amount was Rs 36.99 crore covering a total of 40,200 beneficiaries.
Action Point: Details of old age homes receiving grants under this are available on the
ministry’s website. One can visit these homes and admit old age persons who have
nobody to take care of.

Rashtriya Vayoshri Yojana (RVY)

This scheme is also run by the Ministry of Social Justice and Empowerment. This is a
central sector scheme funded from the Senior Citizens’ Welfare Fund. The fund was
notified in the year 2016. All unclaimed amounts from small savings accounts, PPF and
EPF are to be transferred to this fund.

Under the RVY scheme, aids and assistive living devices are provided to senior citizens
belonging to BPL category who suffer from age-related disabilities such as low vision,
hearing impairment, loss of teeth and loco-motor disabilities. The aids and assistive
devices, viz walking sticks, elbow crutches, walkers/crutches, tripods/quadpods, hearing
aids, wheelchairs, artificial dentures and spectacles are provided to eligible beneficiaries.
The scheme is being implemented by Artificial Limbs Manufacturing Corporation of
India (ALIMCO), which is a public sector undertaking under the Ministry of Social
Justice and Empowerment.

Action Point: Get old-age people with such ailments in the identified districts to approach
the district Collector’s office to know more about the upcoming camps and take
advantage of the scheme.

Indira Gandhi National Old Age Pension Scheme (IGNOAPS)

The Ministry of Rural Development runs the National Social Assistance Programme
(NSAP) that extends social assistance for poor households- for the aged, widows,
disabled, and in cases of death where the breadwinner has passed away. This is in
addition to the benefits that the state governments extend to these people. Under this
scheme, financial assistance is provided to person of 60 years and above and belonging to
family living below poverty line as per the criteria prescribed by Government of India.
Central assistance of Rs 200 per month is provided to person in the age group of 60-79
years and Rs 500 per month to persons of 80 years and above.

Funds under the schemes of NSAP are released on the basis of reports submitted by
States/UTs. A total of Rs 5901 crore was released under the scheme in 2016-17.

Action Point: Find out the details of the relevant state scheme and get eligible old age
people around you apply for the pension.

Specially intended for older adults above the age of 60 years, who fall below the poverty
line, according to the guidelines prescribed by the Government of India. The IGNOAPS
assists with money up to 200 p.m., and 500 p.m., for people between 60 and 79 years and
above 80 years, respectively.
Varishtha Pension Bima Yojana (VPBY)
This scheme is run by the Ministry of Finance. The Varishtha Pension Bima Yojana
(VPBY) was first launched in 2003 and then relaunched in 2014. Both are social security
schemes for senior citizens intended to give an assured minimum pension on a
guaranteed minimum return on the subscription amount. These schemes are implemented
through Life Insurance Corporation (LIC) of India, which is paid the difference between
the actual yield earned by the LIC on the funds invested under the scheme and the
assured return of 9 percent committed by the government. Both the schemes, VPBY 2003
and VPBY 2014, are closed for future subscriptions. However, policies sold during the
currency of policy are being serviced as per the commitment of guaranteed 9 percent
return announced by the government under the schemes. As on 31 March 2017, a total of
2,74,885 beneficiaries and 3,11,981 beneficiaries are being benefited under VPBY 2003
and VPBY 2014 respectively.

The Pradhan Mantri Vaya Vandana Yojana

The Pradhan Mantri Vaya Vandana Yojana (PNVVY) was launched in May 2017 to
provide social security during old age. This is a simplified version of the VPBY and will
be implemented by the Life Insurance Corporation (LIC) of India. Under the scheme, on
payment of an initial lump sum amount ranging from Rs 1,50,000 for a minimum pension
of Rs 1000 per month to a maximum of Rs 7,50,000/- for a maximum pension of Rs
5,000 per month, subscribers will get an assured pension based on a guaranteed rate of
return of 8% per annum payable monthly/quarterly/half-yearly/annually. The duration of
the scheme will be for a period of ten years and the scheme is opened for subscription for
a period of one year i.e. from 4th May, 2017 to 3rd May, 2018. As on 30th November
2017, a total of number of 1,83,842 persons are being benefited under PMVVY.

Action Point: The PMVVY is open for subscription till May 2018. Get old age people
around you who are eligible for this scheme to explore and subscribe.

National Programme for the Health Care of Elderly (NPHCE)

The Ministry of Health & Family Welfare had launched the ‘National Programme for the
Health Care of Elderly’ (NPHCE) during 2010-11 to address various health related
problems of elderly people. The major objectives under district level activities of the
NPHCE are to provide dedicated health facilities in district hospitals, community health
ccentres (CHC), primary health centres (PHC) and sub-centres (SC) levels through State
Health Society. The healthcare facilities, being provided under this programme, are either
free or highly subsidised. Introduced in 2010, this scheme concentrates on preventive as
well as promotive care for the maintenance of overall health. This program was launched
to address the health issues faced by seniors. The district-level objectives include
providing dedicated health facilities in district hospitals, community health centres
(CHC), primary health centres (PHC), and sub-centres (SC) levels through State Health
Society. These facilities maybe free or highly subsidized.
 The following facilities are being provided under the programme.

 Geriatric OPD and 10-bedded geriatric ward at district hospitals.

 Bi-weekly geriatric clinic at community health centres (CHC)
 Weekly geriatric clinic at primary health centres (PHC)
 Provision of aids and appliances at sub-centres

The Centre will bear 75 percent of the total budget and the state government will
contribute 25 percent of the budget, for activities up to district level.

Action Point: As on date, the district-level activities of the programme have been
sanctioned in 520 districts of 35 states/UTs. Check for districts in your state that have
benefitted under this programme.

Varishta Mediclaim Policy

This policy aids seniors by covering the cost of medicines, blood, ambulance charges,
and other diagnosis related charges. Designed for senior citizens between the age of 60
and 80 years, this helps meet the health-related expenses of senior citizens. Moreover,
income tax benefits are allowed for payment of premium under Section 80D. Although
the policy period is for one year, you can extend the renewal up to the age of 90 years.

Rashtriya Vayoshri Yojana

This scheme provides physical aids and assisted-living devices for older adults above 60
years of age that belong to the BPL (below the poverty line) category. So, if senior
citizens wish to avail this, then they must have a BPL card. This is a Central Sector
Scheme and is entirely funded by the Central Government.

Vayoshreshtha Sammans - A Scheme of National Award for Senior Citizens.

Scheme of National Award for Senior Citizens (Vayoshreshtha Sammans) was launched
in 2005 and is dedicated to senior citizens. The Scheme is funded by the Central
government. This scheme is applicable for eminent senior citizens and institutes involved
in rendering distinguished services for the cause of elderly persons. Institutes and senior
citizens can avail this scheme by contacting Ministry of Social Justice and
Empowerment.
Aims And Objectives
The main objective of the Scheme is to improve the quality of life of the Older Persons
by providing basic amenities like shelter, food, medical care and entertainment
opportunities and by encouraging productive and active ageing through providing support
for capacity building of Government / Non-Governmental Organizations / Panchayati Raj
Institutions / local bodies and the Community at large.

Approach
Assistance under the scheme will be given to the Panchayati Raj Institutions / local
bodies and eligible Non-Governmental Voluntary Organizations for the following
purposes:-

 Programmes catering to the basic needs of Older Persons particularly food, shelter
and health care to the destitute elderly;
 Programmes to build and strengthen intergenerational relationships particularly
between children / youth and Older Persons;
 Programmes for encouraging Active and Productive Ageing;
 Programmes for proving Institutional as well as Non Institutional Care / Services
to Older Persons;
 Research, Advocacy and Awareness building programmes in the field of Ageing;
and
 Any other programmes in the best interests of Older Persons.

Implementing Agencies
Under the scheme, assistance will be sanctioned to the following agencies subject to
terms and conditions laid down by this Ministry:-

 Panchayati Raj Institutions / Local bodies

 Non-Governmental Voluntary Organizations
 Institutions or Organizations set up by Government as autonomous / subordinate
bodies
 Government Recognized Educational institutions, Charitable Hospitals / Nursing
Homes, and recognized youth organizations such as Nehru Yuvak Kendra
Sanghathan (NYKS).
 In exceptional case, financial assistance under the Scheme shall also be provided
to State Governments/Union Territory administrations.

Eligibility Criteria For The Non-Governmental Voluntary Organisations

 The Non-governmental voluntary organization should be a registered body, under

an appropriate Act so that it gets a corporate status and a legal personality and a
group liability is established for its activities;
 It should be registered either under the Societies Registration Act, 1860 or relevant
State Societies Registration Act and has already been working for atleast two
years; or a Public Trust registered under any law for the time being in force or a
charitable company licensed under Section 525 of Companies Act, 1958.
  It should have been registered for a minimum period of two years but in the case
of the North Eastern region, J&K, Desert areas and under serviced/Under-
represented areas, this condition of two years will not be applicable. In other
deserving cases, the condition of two years may be relaxed with the approval of
the Secretary (SJ&E) on case-to-case basis.
 The Organization shall have a properly constituted managing body with its
powers, duties and responsibilities clearly defined and laid down in a written
Constitution; It shall have an appropriate administrative structure and a duly
constituted managing/ executive committee;
 The organization is initiated and governed by its own members on democratic
principles.
 The aims and objects of the organization and programmes in fulfillment of those
aims and objects are specifically laid down;
 The Organization shall not run for profit to any individual or a body of
individuals; The Organization should possess proven credentials and capabilities
to handle such projects.

Various Government Concessions and Schemes Under Different Heads

A. Finance

• Income Tax • Income tax rebate up to an income of Rs. 2.5 lakh p.a. from 1/04/12 and
this concession shall be available to all senior citizens of 60 years & above, as against 65
at present.

• A special category of very senior citizens of those above 80 will be given exemption
limit of Rs 5 lakh per annum.

• Separate wards are provided for filing Returns for Senior Citizens.

• All claims of Senior Citizens are settled on the spot. If not, refund is required to be
given within 3 months of filing the Return.

• Saving bank interest upto 10,000 exempted from 1/04/12

• Deduction of Medical Insurance premium is increased to Rs.20000. Medical

expenditure for some specific diseases is exempted up to Rs.60000

• The present limit of TDS is increased to Rs.10000 from Rs.5000 from 1-4- 07. e) State
of Maharashtra exempts Senior Citizens from Professional Tax.
 • Bank & Post Office: • Interest on daily basis is calculated for Savings Bank Account &
rate of interest in Savings Bank is increased.

• Senior Citizens are given .25 to 1% more interest by banks on deposits.

• Senior Citizens Scheme: Senior Citizens of 60 and above can deposit Rs. 1000 to Rs.
15 lakh (30 lakh for husband & wife) at the fixed interest rate of 9% in any Post Office or
Bank for a period of 5 years, extendable for 3 more years. This can be in joint account or
separate account of individual. This account can be closed after 1 year. Income from this
account is taxable.

• Reverse Mortgage Scheme: Senior Citizens of 60 and above having their own houses
can mortgage their house and get a monthly amount or lum sum without payment of tax
either on cash received from Mortgager or capital gain tax on excess valuation of the flat
for day to day expenses and also for health care, home improvements, recreational,
religious purposes etc under this scheme without vacating their house subject, of course
to valuation of the house, age, interest rates etc. When one dies or house is sold, the debt
gets paid off. Spouse can continue to stay till survival.

B. Medical:

• Medical Facilities: Maharashtra Government has directed all Government & Municipal
Hospitals and Hospitals attached to Medical & Dental Colleges to provide free
investigations & complete treatment to all Senior Citizens. There will be separate ques
for Senior Citizens for case paper, consultations with doctors & medicines. Except, 3
major Hospitals-Nair, KEM & Sion, all Municipal Hospitals have confirmed in writing
that they are giving free treatment to all senior Citizens.

• Private Charitable Hospitals: As per provisions in Sec 41AA in The Bombay Public
Trust Act,1950 Charity Commissioner has to instruct & ensure that all private charitable
hospitals reserve & earmark 10% of total number of Operational Beds and 10% of the
total capacity of patients for BPL PATIENTS and are required to be given free treatment
on par with paying patients and without any discrimination .

• Maharashtra Rajiv Gandhi Jeevandayee Arogya Yojna.RGJAY- (Web site:

www.jeevandayee.org) : The State Government of Maharashtra has launched Rajiv
Gandhi Jeevandayee Arogya Yojana (RGJAY) in order to improve access of Below
Poverty Line (yellow card holders) and Above Poverty Line (APL- orange card holders)
families to quality medical care. The scheme will extend quality medical care for
identified specialty services requiring hospitalization for surgeries and therapies or
consultations through an identified network of health care providers. The insurance
policy/coverage under the RGJAY for the eligible beneficiary families in 8 districts of
Phase I will be in force for an initial period of one year from the date of commencement
of the policy. The scheme will cover 30 specialized service categories having 972
procedures and 121 follow up procedures

• Medical Insurance : National Insurance Company has introduced Varishtha Mediclaim

Policy for Senior Citizens between 60 to 80 years EXTEDABLE UP TO 90 YEARS with
a basic cover of Rs 1 lakh covering Hospitalization & domiciliary hospitalization and Rs.
2 lakh for critical illness. It shall cover pre existing diseases after claimless 1 year. Many
other Insurance Companies also offer various schemes for Health Insurance.

3. Travel:

• Bus

• Reservation of two seats is kept for Senior Citizens in front row of the buses of the
State Road Transport Undertakings (ST) & in some cases; they are allowed to occupy
seats reserved for handicaps, if vacant. In BEST buses in Mumbai, Senior Citizens are
allowed to enter from front door. BEST has provided 5 seats recently.

• Some State Governments are giving fare concession to Senior Citizens at different
rates & to different age groups in the State Road Transport Undertaking buses running
out of city areas. In Maharashtra, 50% concession is allowed to all Senior Citizens of 65
& above in all ST buses running out of city.

• In MBMT (Mira-Bhayander Municipal Transport Corporation) buses running in city

area also, 50% concession is given. Some concession should be given in Taxi &
Rickshaw fares also. In Punjab, women Senior Citizens are allowed free travel by ST
buses. Some States are introducing Bus Models, which are convenient to the elderly.

Railway

• Indian Railways provide 40% fare concession in all Mail/Express including

Rajdhani/Shatabadi/Jan Shatabadi trains for Senior Citizens aged 60 years and above for
males and 50% to women aged 58 and above.

• Indian Railways also have the facility of separate counters for Senior Citizens for
purchase/booking/cancellation of tickets, for Main Line Trains. Two lower berths are
reserved in each coach for Senior Citizens & Women of 45 & above travelling alone.

• Railways grant 75% concession to Senior Citizens undergoing major heart/cancer

operations from starting station to Hospital station for self & one companion.
 • In Mumbai suburban trains, certain seats are reserved from 12 to 15 hrs in specified
compartments. There is necessity of a separate coach & reservation of 3 seats in all First
Class Compartments.

Air

• Indian Airlines is providing 50 per cent Discount on Normal Economy Class fare for
all domestic flights to Indian senior citizens who have completed the age of 60 years
subject to certain conditions. • Air India is offering discount of 55% to senior citizens of
60 plus on flights to USA, UK and Europe on economy class. For Identity card, 2
passport sized photographs have to be submitted along with the form.

• Certain Airlines offers discount in Business class only for citizens of 65 years or above
on sectoral basis. Age proof required.

• Some Airlines offers a discount of 50% on economy class for citizens of 65 years or
above. One passport sized photograph required on the form along with age proof.

Communication

• Telephone: MTNL : • Senior Citizens 65yrs and above : 25% concession in installation
and Rental, Age proof required.

Legal

Court :

• Courts in the country accord priority to cases involving older persons and ensures their
expeditious disposal.

• According to provisions of Chapter III of the Personal Law (Hindu) and Chapter IX of
Code Of Criminal Procedure, older persons can claim maintenance from their children.

• Free Legal Aid

References:

https://www.seniority.in/blog/10-government-schemes-launched-for-the-benefit-of-
senior-citizens/

https://www.india.gov.in/people-groups/life-cycle/senior-citizens
https://vikaspedia.in/social-welfare/senior-citizens-welfare/schemes

https://www.slideshare.net/saileshmishra1/government-policy-schemes-law-for-senior-citizens-in-india