PMKMY: Pradhan Mantri Kisan Mandhan Yojana
Pradhan Mantri Kisan Mandhan Yojana is a financial protection scheme by the Government of India for the welfare of small, underprivileged farmers in India. It aims to provide financial coverage for underprivileged farmers and workers in the unorganized sector in the 18- 40 years of age group. Such workers should not be covered under any other social or government security scheme.
They include those that are street vendors, home-based or domestic workers, head loaders, cobblers, brick kiln, rag pickers, Rickshaw Pullers, washer-men, landless labourers, agricultural or construction workers, or those working for the beedi, handloom workers, or leather industries, and whose monthly income is less than Rs 15,000.
Eligibility Criteria Of PMKMY
Pradhan Mantri Kisan Mandhan Yojana - PMKMY is explicitly meant for all Indian small, marginal farmers who have not more than 2 hectares of cultivable land. The candidates should be from 18 -40 years of age. At the same time, they should be listed in the State land records as of August 1, 2019.
Thus, the eligibility criteria for farmers and workers to join this Scheme are:
- 18 - 40 years ago, at the time of entry
- SMF or Small & Marginal Farmers
- Possession of cultivable land, not more than 2 hectares that should be listed in the State land records
- They should not be covered under any other government or semi-government schemes, like NPS(National Pension Scheme), EFO (Employee Fund Organization Scheme), or the ESIC (Employee State Insurance Corporation scheme), etc.
At the same time, the SMFs:
- Should not be covered under any other social security schemes, like, PM Shram Yogi Maandhan Yojana and PM Vyapari Maandhan
- They should not be higher privileged beneficiaries like institutional landholders, former or current ministers (Central or state ministers), MLAs or post holders of District Panchayat, or other posts.
- Should not belong to the category of in-service or retired employees or officers of the Central or the State Government offices, departments, or their PSEs, and other Government Autonomous Institutions or Local Bodies
- Workers should not be income taxpayers, like, engineers, doctors, lawyers, architects, or CAs.
The SMFs or workers should possess:
- Valid AADHAAR card
- Operational PM- KISAN Account or Savings Bank Account
Features of Pradhan Mantri Kisan Mandhan Yojana
The following are the key features of Pradhan Mantri Kisan Maandhan Yojna (PMKMY):
- This is a voluntary Pension Scheme for underprivileged farmers or workers from the unorganized sector of a contributory nature.
- The applicants from 18 years to 40 years of age need to contribute monthly to the Scheme until they are 60 years old. It will range from Rs 55-Rs 200 monthly.
- It will be compensated by an equal and matching compensation per month by the GOI or Government of India.
- Once the Scheme matures, an individual will be entitled to obtain Rs. 3000 monthly as a minimum guaranteed monthly pension. This amount can be utilized to meet their financial requirements.
- The farmer or worker will get the pension amount after 60 years of age, as deposited in their pension account.
- In case of the farmer or the pension holder's death, the spouse of the farmer shall get 50% of the amount as pension for the family.
- Only the spouse will be eligible for pension in such cases, and not children, parents, or any other relatives of the farmer or the worker.
- The corpus gets credited back to the fund upon the subscriber's death and his or her spouse.
Core Benefits of PMKMY
The PM Kisan Mandhan Yojana provides various benefits to the enrolled candidates:
As applicable under the Scheme, the subscriber will be eligible to get Rs. 3000 as monthly pension in his registered account, once he becomes 60 years old. This will help to secure his financial future in old age.
Death Benefits to the Family
The PMKMY not only provides financial protection to the farmers or workers in their old age when alive, but it also benefits the subscriber's family upon his death. In the case of an eligible pension subscriber's death, only his spouse will receive 50% of his original pension for the family.
There may be a case when the individual registered under the PMKMY scheme, which has been regularly contributing to the Scheme, becomes permanently disabled before his 60 years of age. In such a scenario, there are two options:
His spouse can continue with the Scheme after his death by regular payment of applicable contribution as before,
He can exit the Scheme and receive his contribution share deposited so far, along with any interest earned thereon. The interest amount will be higher than the savings bank interest rate or interest earned by the Pension Fund.
Benefits if the Candidate Leaves the PMKMY Scheme
Even if the farmer or the worker registered under this PM Kisan Maandhan Yojana scheme leaves the Pension Scheme, he will be entitled to receive some benefits. They are as follows:
- If the candidate exits this Scheme before 10 years from the date of commencement of the Scheme, he will only get his contribution share with a savings bank rate of interest payable thereon. No Government contribution will be given.
- If the candidate exits after 10 years or more from the date of commencement of the Scheme. In such cases, if the candidate withdraws from the Scheme before attaining 60 years of age, he will only get his share of contribution along with accrued interest thereon. This will be the higher amount of interest earned by the interest at the savings bank interest rate or the Pension Fund.
- In case if the candidate has died before the completion of the Scheme but has made regular contributions under the Scheme, if his spouse wants to exit the Scheme, he will be eligible to receive a contribution share made by the subscriber along with accrued interest.
- This Pradhan Mantri Kisan Maandhan Yojana scheme requires a monthly contribution to be made by the subscriber.
- It can be anything from a minimum of Rs. 55 to a maximum of Rs. 200 every month.
- The subscriber can continue making the payments till he is 60 years old.
- An equal amount will be matched by the Government of India and contributed to the pension fund.
How to Apply for PMKMY (PM Kisan Mandhan Yojana)?
- The SMF has to meet the eligibility criteria before joining the Pradhan Mantri Kisan Maandhan Yojana scheme.
- To enrol in the process, they need to visit their nearest CSC or the Common Service Centre. They need to carry their AADHAAR Card and their valid bank chequebook, passbook, or bank statement copy.
- The SMF needs to make the first contribution payment in cash to the VLE or their Village Level Entrepreneur.
- The VLE will carry out their AADHAAR authentication and make a note of their name, DOB, and AADHAAR number.
- The VLE will also help the interested candidates get enrolled under the Scheme by filling up their bank details, Spouse and Nominee details, Mobile Number, and Email Address online.
- The VLE will inform the subscriber about the monthly contribution payable, auto-calculated by the system based upon the subscriber’s age.
- The subscriber under the Scheme can make the first payment to the VLE in cash. He will then receive and sign an Enrolment & Auto Debit mandate form from the VLE, who will print, scan, and upload the same.
- After all the formalities are complete, the applicant gets a unique KPAN or Kisan Pension Account Number on a Kisan Card. It will be given to the subscriber for record purposes.
A1. The beneficiary can join the PMKMY at the entry age of 18 years to 40 years. He needs to contribute till he reaches the age of 60.
A2. Any worker, who is already enrolled under any Government Scheme, such as EPFO, NPS, and ESIC, or, if he pays income tax, will not be eligible to register for this Scheme.
A3. No. Subscribers need not provide any separate age or income proof to get registered under the Scheme. They can just provide their AADHAAR number and self-certify. In case of any false information made by the applicant, their application may get rejected or penalized appropriately.
A4. This Scheme supports a monthly auto-debit from the subscriber's registered bank account for a monthly contribution. The first contribution will be a cash payment at the time of registration. It also allows for quarterly, semi-annually, or annual contribution payments. The first installment is to be paid in cash at the CSC.
A5. No, there are no additional administrative costs involved. This is because it is a pure welfare scheme by the Government of India.
A6. Yes, the nomination facility is available under the Scheme. Under the Scheme, the subscriber can nominate anyone as the nominee.
A7. No. There are no minimum educational qualifications needed by the subscribers to join this Scheme.
Written By: PolicyBazaar - Updated: 28 April 2021