Union Cabinet clears pension scheme for traders, 3 crore retail traders to benefit

Speed Post News Network

New Delhi : In a decision that will benefit the trading community, the Union Cabinet, chaired by Prime Minister Narendra Modi, on May 31, 2019, 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.

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.

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.  Modi had spoken about the need of proving pension for traders that would assure them a life of dignity and financial security especially 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 up to Rs 1 crore are now easily available, according to a PIB release.