Defence Minister Arun Jaitley approved the increase in the penury grant following demands by different stake holders, including ex-servicemen associations, Rajya Sainik Boards and widows.
Recently, the Jammu and Kashmir Governor N.N. Vohra had also sent a proposal to the Defence Minister to increase the amount to Rs 4,000.
The penury grant is provided to non-pensioner ex-servicemen and widows, who are above 65 years of age by the Department of Ex-Servicemen Welfare, Ministry of Defence, through Kendriya Sainik Board.
"The step of enhancement of penury grant will benefit a large number of non-pensioner ex-servicemen and widows who are in a state of penury," the statement said.
Earlier, it was a onetime grant of Rs 30,000. It was revised to Rs 1,000 per month in October 2011.