Related Topic in KAS Prelims Syllabus:
Economy [Paper-II]: Agriculture
According to Union Minister of Agriculture and Farmers Welfare, over 18 Lakh Farmers registered under PM Kisan Maan Dhan Yojana.
About the Scheme
- It is an old-age pension scheme to all Small and Marginal Farmers in the country.
- It was launched with a view to provide social security net for the Small and Marginal Farmers (SMF) as they have minimal or no savings to provide for old age and to support them in the event of consequent loss of livelihood.
- The scheme was announced during the Budget 2019-20.
Salient features of the Scheme
It is voluntary and contributory for farmers in the entry age group of 18 to 40 years and whose cultivable land is 2 hectares or less.
A monthly pension of Rs. 3000/- will be provided to them on attaining the age of 60 years.
- The farmers have to make a monthly contribution of 55 to Rs.200, depending on their age of entry, in the Pension Fund till they reach the retirement date (60 years).
- The Central government will also make an equal contribution of the same amount in the pension fund.
- Spouse is also eligible to get a separate pension of Rs 3,000 upon making separate contribution to the fund.
The Life Insurance Corporation of India (LIC) shall be the Pension Fund Manager and responsible for Pension pay out.
The initial enrolment to the PM-KMY is being done through the Common Service Centres (CSCs).
For beneficiaries of the PM-KISAN scheme
They will have the option to allow their contribution debited from the benefit of that scheme directly.
In case of default
In case of default in making regular contributions, the beneficiaries are allowed to regularise the contribution by paying the outstanding dues, along with prescribed interest.
Transfer of Pension
- In case of death of the farmer before the retirement date, the spouse may continue with the scheme.
- If the spouse does not wish to contribute, the total contribution made by the farmer along with interest will be paid to the spouse.
- In the absence of any spouse, total contribution along with interest will be paid to the nominee.
- If the farmer dies after the retirement date, the spouse will receive 50 per cent of the pension as family pension.
- After the death of both the farmer and spouse, the accumulated corpus will be credited back to the pension fund.
Option for Exit
- The beneficiaries may opt voluntarily to exit the scheme after a minimum period of five years of regular contributions.
- On exit, their entire contribution will be returned by Life Insurance Corporation (LIC) with an interest equivalent to prevailing saving bank rates.