Mahatma Gandhi Pravasi Suraksha Yojana

Why in news?

The Union Cabinet chaired by the Prime Minister has approved closure of the Mahatma Gandhi Pravasi Suraksha Yojana (MGPSY) which was set up in 2012.

What is the scheme about?

• Mahatma Gandhi Pravasi Suraksha Yojana is a special social security scheme which includes Pension and Life Insurance, introduced by Ministry of Overseas Indian Affairs.
• It is for the overseas Indian workers in possession of Emigration Check Required (ECR) passports.
• It is a voluntary scheme designed to help workers to meet their three financial needs: saving for retirement, saving for their return and resettlement, and providing free life insurance offering coverage for death from natural causes.
• The subscription under the MGPSY was very low and no new subscription was received for more than a year.
•  Closure of the scheme will, therefore, obviates the avoidable recurring administrative and record-keeping expenditure.

What are the main attractions of the scheme?

• Government contribution of Rs.1,000 per annum in line with Swavalamban platform for all MGPSY subscriber who save between Rs.1,000 and Rs.12,000 per year in NPS-Lite.
• An additional government contribution of Rs.1,000 per annum by MOIA for the overseas Indian women workers who save between Rs.1,000 to Rs.12,000 per year in NPS-Lite.
• A special government contribution of Rs.900 by MOIA towards Return and Resettlement (R&R) of the overseas Indian workers who save Rs.4,000 or more per annum.

Source: PIB, Ministry of External Affairs