The Kerala government is all set to launch a savings scheme for its community in the UAE. Non-resident Keralites from the state can pool money into the scheme, which will be an investment for them once they return to Kerala.
The scheme, Pravasi Chitty, is expected to be launched in the UAE next month, visiting top government officials from the state have revealed. A delegation from Kerala is on a short visit to the UAE to create awareness about the new scheme among the expats.
The scheme run by Kerala State Financial Enterprises (KSFE), a non-banking entity fully-owned by the Kerala government, will be rolled out later in other GCC countries. The government targets at least 100,000 subscribers in the first year. The state government also expects to raise Rs100 billion from expats through the scheme.
The funds collected by KSFE will be invested in bonds issued by Kerala Infrastructure Investment Fund Board (KIIFB), which is a government-owned financial institution to mobilise funds for infrastructure development.
“By enrolling into this scheme, expats will receive benefits like insurance, pension etc. All process can be done online and the logistics are being set in place this month. A 24X7 office will soon be operating in the state capital, Thiruvananthapuram,” Peelipose Thomas, KSFE chairman, said.
The insurance cover is in partnership with Life Insurance Corporation. On death of a subscriber, the payments will be completed by the insurance company. It will also cover repatriation of dead body and tickets fare of a relative. A subscriber who invests in pension scheme will get regular benefits on turning 60.
Meanwhile, Kerala Chief Minister Pinarayi Vijayan and Finance Minister Issac Thomas will visit the UAE for the implementation of the initiative.
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