Pradhan Mantri Kisan Maan Dhan Yojana (PM-KMY)

Context

Prime Minister Narendra Modi launched the Pradhan Mantri Kisan Maan Dhan Yojana at Ranchi, Jharkhand.

Why there is a need of such scheme?

• There is a felt need to create a social security net for the farmers as old age may result in loss of livelihood for many of them.
• Farming requires hard work in fields which becomes difficult at an advanced age.
• The problem is compounded in respect of small and marginal farmers as they have minimal or no savings to provide for old age.

Key features of the Scheme:

• The PM-KMY is a Central Sector Scheme, administered by the Department of Agriculture, Cooperation & Farmers Welfare, Ministry of Agriculture & Farmers’ Welfare, Government of India in partnership with the Life Insurance Corporation of India (LIC).
• The Life Insurance Corporation of India (LIC) shall be the Pension Fund Managerand responsible for Pension pay out.
• The Pradhan Mantri Kisan Maan-Dhan Yojana (PM-KMY) provides for an assured monthly pension of Rs. 3000/- to all land holding Small and Marginal Farmers (SMFs), whether male or female, on their attaining the age of 60 years.
• The amount of the monthly contribution ranges between Rs.55 to Rs.200 per month depending upon the age of entry of the farmers into the Scheme.
• The Central Government will also make an equal contributionof the same amount in the pension fund.
• The spouse is also eligible to get a separate pension of Rs.3000/- upon making separate contributions to the Fund.
• In case of death of the farmer before retirement date, the spouse may continue in the scheme by paying the remaining contributions till the remaining age of the deceased farmer.
• 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.

Eligibility:

• All Small and Marginal Farmers (SMFs) in all States and Union Territories of the country, who are of the age of 18 years and above and upto the age of 40 years, and who do not fall within the purview of the exclusion criteria as mentioned in the guidelines, are eligible to avail the benefits of this Scheme by joining it.
• Farmers falling within the purview of the exclusion criteria are not eligible for the benefit.

Exclusion criteria:

• SMFs covered under any other statuary 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 (PMSYM) administered by the Ministry of Labour & Employment.
• Farmers who have opted for Pradhan Mantri Laghu Vyapari Maan-dhan Yojana (PM-LVM) administered by the Ministry of Labour & Employment.

The following categories of beneficiaries of higher economic status are not eligible for benefits under the scheme:

• All Institutional Land holders.
• Former and present holders of constitutional posts
• Professionals like Doctors, Engineers, Lawyers, Chartered Accountants, and Architects registered with Professional bodies and carrying out profession by undertaking practice.