This Modi government scheme is set to benefit 3 crore retail traders, shop keepers

India has a rich tradition of trade and commerce, and traders have made a strong contribution to the country's economic growth. Looking at this legacy, Union Cabinet, chaired by Prime Minister Narendra Modi, on Friday decided to approve a new scheme offering pension coverage to the trading community, said a government statement, adding that it is 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 of 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 themselves for this scheme, said the statement, adding that it will benefit more than 3 crore small shopkeepers and traders.

Based on self-declaration, the scheme will not require any other document except Aadhaar and bank account. Interested persons can enrol themselves through more than 3,25,000 Common Service Centres spread across the country. 

According to the statement, the government will make a matching contribution in the subscribers’ account. For example, if a person with age of 29 years contributes Rs 100 month, then the Centre will also contribute the equal amount as subsidy into subscriber’s pension account every month.

Notably, by introducing a pension architecture for the trading community, the Prime Minister and his team have fulfilled a major promise made to people prior to general elections about the need to provide a pension for traders so that a life of dignity and financial security is assured, especially during their old age.