New savings scheme for Keralites to be launched on June 18
An expat can join the scheme, remit monthly installments and participate in the auction.- Reuters
Abu Dhabi - There are more benefits for expats in the scheme, with insurance cover and pension schemes.
A new savings scheme for expats from the south Indian state of Kerala is now one step closer.
On June 18, Kerala Chief Minister Pinarayi Vijayan will launch the registration process for 'KSFE Pravasi Chitty' in the state capital of Thiruvananthapuram, a top official said.
The Pravasi Chitty scheme by Kerala State Financial Enterprises (KSFE), a non-banking company fully-owned by the Kerala government, is designed for Keralites working abroad. Initially, only UAE expats will benefit from this scheme, which will later be extended to other countries in the region.
KSFE general manager (business) VP Subramanian is hopeful the scheme will get a good response when the chief minister opens the registration process on June 18. "This scheme will be operated entirely online. The chief minister will launch a dedicated website and a mobile application. The software will help any UAE-based Keralite to subscribe and monitor the operations," Subramanian said, over the phone, from Kerala.
An expat can join the scheme, remit monthly installments and participate in the auction either through website or mobile app. "The scheme was set to be launched on June 12 (Tuesday) but had to be shifted to next week," he added.
Through the scheme, the Kerala government is welcoming the expat population power the development works in the state.
Kerala's Finance Minister, Thomas Isaac, recently said the funds from the scheme will be invested in the bonds of Kerala Infrastructure Investment Fund Board. KIIFB is a government institution which mobilises funds for the state government's long-term developmental projects. The new NRI Chitty is set to be one of the major sources of revenue for KIIFB.
The Communist Party of India (Marxist)-led Left Democratic Front government aims to raise Rs100 billion for a total of Rs500 billion-worth developmental projects, from this savings scheme over the next five years.
"The government targets 1,000,000 subscribers in the next two to three years," he had said last Thursday in Kerala.
A virtual branch of the scheme will be started from Thiruvananthapuram. "A 24/7 call centre will operate from the branch," Issac added.
The first online payment will be held in the UAE next month end or first week of August. It is learnt that either the Kerala chief minister or Issac will launch the new offering.
Insurance cover, pension schemeThere are more benefits for expats in the scheme, with insurance cover and pension schemes. The insurance cover is in partnership with Life Insurance Corporation (LIC). In the event of a subscriber's demise, the remaining payments will be completed by LIC. The scheme also covers repatriation costs of the deceased's body and airfares of a relative. If a subscriber invests in the pension scheme, he will get regular benefits on turning 60.