Union Cabinet Approves the Termination of Mahatma Gandhi Pravasi Suraksha Yojana
ON 5 April 2017, The Union Cabinet approved closure of the Mahatma Gandhi Pravasi Suraksha Yojana (MGPSY). The Scheme was set up in 2012 to address the social security-related issues of the Emigration Check Required (ECR) category workers going abroad for employment to ECR countries.
The main motto of the scheme is to cover 5 million overseas blue-collar Indian workers who have the ECR category passports in 17 countries.
Although, the subscription under the MGPSY was very low and no new subscription was received for more than a year.
Details of Mahatma Gandhi Pravasi Suraksha Yojana
- Mahatma Gandhi Pravasi Suraksha Yojana (MGPSY) was a special social security scheme for overseas Indian workers on a temporary work permit in the Emigration Check Required (ECR) countries.
- This main motto of this scheme was helping the workers to save money for their retirement, their return to India and provides life insurance cover against natural death during the period of coverage.
- The Scheme considers a co-contribution of Rs 1000 by Government to overseas Indian workers who save Rs 4000 per annum so that on return to India, an MGPSY subscriber could utilize these savings for return and resettlements purposes.
- It provided home and a life insurance cover of Rs 1 Lakh for workers.
- Indian Workers Resource Centre or IWRC was the support center fo Indian workers in the UAE while Bank of Baroda was the official banking partner of the scheme to enroll the workers.
News Source: http://www.jagranjosh.com/current-affairs/union-cabinet-approves-closure-of-mahatma-gandhi-pravasi-suraksha-yojana-1491452399-1