PM Kisan Maan Dhan Yojana Opens For Registration
Why is it in News?
- On 8th August, 2019, the government opened registration for the PM Kisan Maan Dhan Yojana (PM-KMY) scheme.
- The Life Insurance Corporation of India (LIC) shall be the Pension Fund Manager and responsible for Pension pay out.
PM Kisan Maan Dhan Yojana
- This scheme which was announced in the Union Budget 2019-20 comprises of provision of a monthly pension of Rs. 3,000 to eligible farmers on attaining the age of 60.
- The farmers are supposed to contribute Rs.55 to Rs.200 on a monthly basis, basis their age of entry in the Pension Fund till up to the age of 60 years.
- The Scheme is effective from the 9th August, 2019.
- The scheme is planned to be implemented across the nation and will also include Jammu and Kashmir and Ladakh.
- It aims to help farmers live a healthy and happy life after they reach their old age.
- Farmers who hold up to 2 hectare farm land are eligible for the scheme. This pension scheme is on voluntary and contribution-based for farmers in the age group of 18 to 40 years.
- Farmers, who have attained 18 years, will have to contribute Rs. 55 per month while the Centre will also contribute a similar amount. Farmers aged 29 years will have to contribute Rs. 100 per month farmers aged 40 will have to contribute Rs. 200 per month.
- 30 has to be paid by farmers to common service centre for enrolment in the scheme.
Special Provisions for Spouse:
- A separate pension of Rs 3,000 upon making separate contribution to the fund is also made available to the spouse of the farmer enrolled.
- The spouse may continue with the scheme, in case of death of the enrolled farmer before the retirement date.
- If the spouse does not wish to contribute, the total contribution made by the farmer along with interest will be paid to the spouse.
- The total contribution along with interest will be paid to the nominee, in case of absence of any spouse.
- The spouse will is eligible to receive 50 per cent of the pension as family pension, in case the farmer dies after the retirement date.
- In case of death of both the farmer and spouse, the accumulated corpus will be credited back to the pension fund.
Voluntary Exit Option:
- The beneficiaries may opt to exit the scheme after a minimum period of five years of regular contributions.
- The entire contribution will be returned by pension fund manager LIC with an interest equivalent to prevailing saving bank rates on exit.
- The farmers, who are also beneficiaries of Pradhan Mantri Kisan Samman Nidhi (PM-Kisan) scheme, will have the option to allow their contribution debited from the benefit of that Scheme directly.
Significance of the Scheme:
- Ensuring Social Security:Farming requires hard work in fields which becomes difficult at an advanced age. Despite working hard, the farmer does not earn enough.Pm-KMY will help to ensure better income, providing social security to farmer’s familyacross the country.
- Doubling Farmer’s Income: It is one of the several schemes introduced by the government which aims to the double the income of the farmers by 2022.
Challenges Faced by Small farmers
Small Land Holdings:
Lack of Education:
Finance and Indebtedness:
Lack of Modernised Infrastructure:
Monsoon Dependency and Inadequate Irrigational Facilities:
Impact of Climate Change:
- Agriculture sector is considered the back bone of the Indian economic system. Besides providing employment opportunities to millions of Indians, it delivers necessary inputs for high industrial growth.
- Therefore, much attention is required in the form of realistic policy measures such as timely availability of formal credit and other inputs to the farmers, creating the awareness about policies and programs of the government meant for educating the farmers through different media platforms is the need of hour in order to improve the socio economic conditions of farmers across the country.