Mahatma Gandhi Pravasi Suraksha Yojana (MGPSY)

Mahatma Gandhi Pravasi Suraksha Yojana (MGPSY): MGPSY stands for Mahatma Gandhi Pravasi Suraksha Yojana. MGPSY was a social security scheme for overseas Indian workers (OIWs) having Emigration Check Required (ECR) passports. It was launched by the Ministry of Overseas Indian Affairs (MOIA) in 2013. The scheme was launched by the Indian government for Indian emigrant workers. MGPSY aims to provide a safety net and financial security to such workers during their old age.

Eligibility of the Scheme Mahatma Gandhi Pravasi Suraksha Yojana (MGPSY)

• Be a citizen of India.
• Have an ECR passport.
• Be employed in a foreign country.
• Have a monthly income of at least Rs. 10,000.

Benefits of Mahatma Gandhi Pravasi Suraksha Yojana (MGPSY)

• Financial security in old age: MGPSY subscribers can accumulate savings for their old age through the NPS Lite scheme. The government also contributes to the savings, up to a maximum of Rs. 1,000 per year.
• Financial assistance to families in case of death: MGPSY subscribers are covered by a life insurance policy, which provides financial assistance to their families in case of the subscriber’s death. The death benefit is up to Rs. 2 lakhs.
• Help with return and resettlement in India: MGPSY subscribers can use their savings to help them return to India and resettle. The government also provides a one-time grant of Rs. 5,000 to help with return and resettlement.
• Tax-free benefits: The benefits of MGPSY are tax-free. This means that subscribers do not have to pay any taxes on their savings, the government’s co-contribution, or the death benefit.

Important Points Related to Mahatma Gandhi Pravasi Suraksha Yojana (MGPSY)

• The scheme was launched in 2013.
• The scheme is administered by the National Insurance Company Limited (NICL).
• The benefits under the scheme are tax-free.
• The scheme is open to OIWs who have an ECR passport and a monthly income of at least Rs. 10,000.
• The subscriber can contribute Rs. 100 per month or they can pay a single premium of Rs. 20,000.
• The benefits under the scheme include pension, life insurance, and return and resettlement.

Why the Scheme was closed in 2018 and again restarted in 2022

MGPSY) was closed in 2018. The government decided to close the scheme due to low subscription rates. As of 2018, only about 100,000 people had enrolled in the scheme, which was well below the target of 1 million subscribers.

• But it was restarted in 2022. The government decided to restart the scheme due to the increasing demand for social security schemes for overseas Indian workers (OIWs).
• The scheme has been modified to address some of the concerns that were raised when it was first launched. For example, the contribution rates have been reduced and the benefits have been enhanced.
• The scheme is now open to OIWs who have an ECR passport and a monthly income of at least Rs. 5,000.

Key Changes in Mahatma Gandhi Pravasi Suraksha Yojana (MGPSY) Scheme:

• The contribution rates have been reduced.
• The benefits have been enhanced.
• The scheme is now open to OIWs who have an ECR passport and a monthly income of at least Rs. 5,000.

FAQs on Mahatma Gandhi Pravasi Suraksha Yojana (MGPSY)

Q. What is the maximum amount of money that can be claimed under MGPSY? 

Ans: The maximum amount of money that can be claimed under MGPSY is Rs. 2 lakhs in case of natural death and Rs. 1 lakh in case of accidental death or disability.

Q. What is the tenure of Mahatma Gandhi Pravasi Suraksha Yojana (MGPSY)?

Ans: The tenure of Mahatma Gandhi Pravasi Suraksha Yojana (MGPSY) is 15 years. But, you can continue to contribute to the scheme even after 15 years.

Q. How can I make a withdrawal from Mahatma Gandhi Pravasi Suraksha Yojana (MGPSY)? 

Ans: You can make a withdrawal from Mahatma Gandhi Pravasi Suraksha Yojana (MGPSY) in the following cases:

• On retirement
• On return to India
• In case of the death of the member

Q. What are the documents required to join Mahatma Gandhi Pravasi Suraksha Yojana (MGPSY)? 

Ans: The following documents are required to join MGPSY:

• Passport
• Visa
• Employment contract
• Address proof
• Identity proof
• Proof of income

Q. Who is eligible for Mahatma Gandhi Pravasi Suraksha Yojana (MGPSY)?

Ans: Overseas Indian Workers who are in the age group of 18-50 years and have migrated to ECR countries on employment or contract visa are eligible for MGPSY.

Q. When was Mahatma Gandhi Pravasi Suraksha Yojana (MGPSY) launched? 

Ans: Mahatma Gandhi Pravasi Suraksha Yojana (MGPSY) was launched on October 2, 2013.