Updated on 13 September, 2019
In another major effort to secure the lives of the farmers, Prime Minister Narendra Modi launched the Pradhan Mantri Kisan Maan Dhan Yojana at Ranchi, the Capital of Jharkhand on 12 September.
About the scheme:
- The Scheme shall secure the lives of 5 Crore Small and Marginal Farmers by providing a minimum pension of Rs 3000 per month, to those who attain 60 years of age.
- Pradhan Mantri Kisan Maan-Dhan Yojana (PM-KMY) is an old-age pension scheme for all landholding Small and Marginal Farmers (SMFs) in the country.
- It is a voluntary pension scheme for the entry age group of 18 to 40 years.
- The Scheme will be effective from the 9th August 2019.
- It aims to provide a monthly pension of Rs. 3000/- to small and marginal farmers on attaining the age of 60 years.
- The farmers will have to make a monthly contribution of Rs.55 to Rs.200, depending on their age of entry, in the Pension Fund till they reach the age of 60 years.
- The monthly contributions will have to be paid on the same day every month as enrolment date.
- The beneficiaries have an option to pay their contributions either quarterly, 4-monthly or half-yearly basis.
- Upon making separate contributions to the Fund, the spouse is also eligible to get a separate pension of Rs.3000/-.
- The Life Insurance Corporation of India (LIC) shall be the Pension Fund Manager of the scheme and will be responsible for pension payout.
- If the farmer dies before the retirement date, the spouse may continue in the scheme by paying the remaining contributions until the remaining age of the deceased farmer.
- If the spouse does not wish to continue, the total contribution made by the farmer along with interest shall be paid to the spouse.
- If there is no spouse then the total contribution along with interest will be paid to the nominee.
- If the farmer dies after the retirement date, the spouse will receive 50% of the pension as Family Pension.
- After the death of both the farmer and the spouse, the accumulated corpus shall be credited back to the Pension Fund.
- The beneficiaries are allowed to volunteer to exit the Scheme after a minimum period of 5 years of regular contributions.
- On exit, their entire contribution shall be returned by LIC with an interest equivalent to prevailing saving bank rates.
- If the farmers are also beneficiaries of PM-Kisan Scheme they will have the option to allow their contribution to be debited from the benefit of that Scheme directly.
- In case of default in making regular contributions, the beneficiaries can regularize the contributions by paying the remaining payment along with accumulated interest.
Farmers who are not eligible for the scheme The following categories of farmers are not eligible for the scheme
- The farmer must be a small and marginal farmer i.e owns cultivable land up to 2 hectares as per land records.
- Age of the farmer must be 18- 40 years.
Also, the following categories of beneficiaries of higher economic status shall not be eligible for benefits under the scheme:
- SMFs covered under any other statutory social security schemes such as National Pension Scheme (NPS), Employees’ State Insurance Corporation scheme, Employees’ Fund Organization Scheme etc.
- Farmers who have opted for Pradhan Mantri Shram Yogi Maan Dhan Yojana (PM-SYM) under the Ministry of Labour & Employment
- Farmers who have opted for Pradhan Mantri Laghu Vyapari Maan-Dhan Yojana (PM-LVM) under the Ministry of Labour & Employment
- All Institutional Landholders
- Former and present holders of constitutional posts
- Former and present Ministers/ State Ministers and former/present Members of Lok Sabha/ Rajya Sabha/ State Legislative Assemblies/ State Legislative Councils, former and present Mayors of Municipal Corporations, former and present Chairpersons of District Panchayats.
- All serving or retired officers and employees of Central/ State Government Ministries/, Central or State PSEs and Attached offices/ Autonomous Institutions under Government as well as regular employees of the Local Bodies.
- All persons who have paid their Income Tax in the previous assessment year.
- Professionals like Doctors, Engineers, Lawyers, Chartered Accountants, and Architects registered with Professional bodies and carrying out profession by undertaking practice.
Significance of the scheme
- The initial enrollment to the Scheme is to be done through the Common Service Centres in various states.
- Later enrollment through the PM-Kisan State Nodal Officers or by any other means will also be made available.
- The Common Service Centres will charge 30/- per enrolment which will be borne by the Government making it free of charge for the farmer.
Also read: PM-KISAN Yojana Extended To All Farmers Ayushman Bharat Yojana: National Health Protection Scheme (AB-NHPS) Source: https://pib.gov.in/newsite/PrintRelease.aspx?relid=193160 http://vikaspedia.in/agriculture/agri-insurance/pm-kisan-maan-dhan-yojana
- The scheme is expected to benefit at least 10 crore labourers and workers in the unorganised sector within the next five years making it one of the largest pension schemes of the world.