The Kerala government is set to launch a savings scheme for expats in UAE. Non-resident Keralites can pool money into the scheme, which will be an investment for them once they return to their motherland.
The Pravasi Chitty scheme by Kerala State Financial Enterprises (KSFE), a non-banking company fully-owned by the Kerala government, is expected to be launched in the UAE next month, top government officials from the state have revealed. The scheme will be rolled out later in other GCC countries as the government targets at least 100,000 subscribers in the first year.
Kerala Chief Minister Pinarayi Vijayan and Finance Minister Issac Thomas are set for a visit to the UAE for the implementation of the initiative. 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.
Kerala Minister for Labour TP Ramakrishnan, on his recent visit, had told Khaleej Times that the scheme is a boon for expats as it’s very ‘safe and secure’.
“It’s no one person or institution, but the government is behind this,” Ramakrishnan said.
A delegation from Kerala is on a short visit to the UAE to create awareness about the new scheme. The state government expects to raise Rs100billion from expats through ‘Pravasi Chitty’ scheme.
Benefits of scheme
“By enrolling into this scheme, expats will receive many benefits – 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. If a subscriber invests in pension scheme, he will get regular benefits on turning 60.
The UAE homes 2.8 million India expats and almost half of them are from Kerala.
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