The Union Cabinet on 5 April 2017 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 scheme was launched with an aim to cover 5 million overseas blue collar Indian workers who have the ECR category passports in 17 countries.
However, the subscription under the MGPSY was very low and no new subscription was received for more than a year.
About Mahatma Gandhi Pravasi Suraksha Yojana
• Mahatma Gandhi Pravasi Suraksha Yojana (MGPSY) was a special social security scheme for overseas Indian workers on temporary work permit in 17 Emigration Check Required (ECR) countries.
• It was aimed at helping the workers to save money for their retirement, their return to India and resettlement and provides life insurance cover against natural death during the period of coverage.
• The scheme envisaged a co-contribution of Rs 1000 by Government to overseas Indian workers who save Rs 4000 per annum so that on return to India, a MGPSY subscriber could utilise these savings for return and resettlement purposes.
• It provided home and a life insurance cover of Rs 1 lakh for workers.
• Indian Workers Resource Centre or IWRC was the support centre for Indian workers in the UAE while Bank of Baroda was the official banking partner of the scheme to enrol the workers.
When: 5 April 2017