Defence Minister Arun Jaitley approved the enhancement of the penury grant following the demands by different stakeholders, including ex-servicemen associations and state Sainik Boards.
This will be payable from April, 2017.
Recently, the Governor of Jammu and Kashmir, N N Vohra had also sent a proposal to Jaitley to increase the amount to Rs 4,000.
The penury grant is provided to non-pensioner ex- servicemen/widows, who are above 65 years of age by the department of ex-servicemen welfare, ministry of defence through Kendriya Sainik Board.
It was last revised from one-time grant of Rs 30,000 to Rs 1,000 per month in October, 2011.