On September 12, 2019, the government introduced the Pradhan Mantri Kisan Maandhan Yojana (PM-KMY) to provide security to Small and Marginal Farmers in their golden years when they do not have a source of income and little or no savings to cover their costs.
What is Pradhan Mantri Kisan Maandhan Yojana?
The Pradhan Mantri Kisan Maandhan Yojana (PM-KMY) is a land-holding Small and Marginal Farmers (SMFs) pension scheme in India. It is a pension plan which is entirely voluntary for people between the ages of 18 and 40. The Scheme will go into effect on August 9, 2019.
Features Of The Pradhan Mantri Kisan Maandhan Yojana
The following are some of the salient features of the PM Kisan Yojana:
- It is voluntary and contributory for farmers between the ages of 18 and 40, and upon reaching 60 years of age, they will obtain a monthly pension of Rs. 3000/-.
- Farmers are supposed to make a monthly contribution of Rs.55 to Rs.200 to the Pension Fund, depending on their age at the time of entry, until they reach the retirement age of 60 years.
- Every month, the monthly contributions will be due on the same day as the enrolment date. Beneficiaries can choose to pay their contributions quarterly, four times a year, or half-yearly. Contributions will be due on the same day as the enrollment date.
- After making separate contributions to the Fund, the spouse is also eligible for a separate pension of Rs.3000/-.
- The Pension Fund Manager and the Pension Payout will be the Life Insurance Corporation of India (LIC).
- If the farmer dies before the retirement date, the spouse may remain in the scheme by paying the remaining contributions until the deceased farmer reaches retirement age. The farmer’s entire contribution, plus interest, will be paid to the spouse if the spouse does not want to continue. If there is no spouse, the entire contribution, including interest, will be paid to the nominee.
- If the farmer dies before the retirement date, his or her spouse is entitled to a Family Pension, which is 50% of the money received as a pension. After the farmer and his or her spouse have died, the accumulated corpus will be credited back to the Pension Fund.
- After at least 5 years of regular contributions, beneficiaries may choose to leave the Scheme voluntarily. When they leave, LIC will refund their entire contribution plus interest based on current savings bank rates.
- Farmers who are also named as beneficiaries of the PM-Kisan Scheme will have the option of having their contribution deducted directly from their benefit.
- In the event of non-payment of regular contributions, beneficiaries are allowed to make up the difference by paying the outstanding dues plus prescribed interest. No late fees will be charged until one month after the first unpaid contribution. Three payment cycles would be required to raise demand for interest-free contribution payments.
Small and marginal farmers are eligible for a minimum fixed pension of Rs.3,000/- when they reach the age of 60, subject to specific exclusion conditions. It is a contributing and voluntary pension plan. The qualified farmer must contribute between Rs.55 and Rs.200 per month to a Pension Fund depending on the entry age. The Pension Fund also receives a matching contribution from the federal government.
Pradhan Mantri Kisan Maandhan Yojana Registration: Eligibility
The following are the eligibility criteria for applying to the PM Kisan Yojana (PM-KMY):
- The farmer has to be a “Small and Marginal Farmer”(SMF). According to the land records of the concerned State/UT, an SMF is a farmer who owns up to 2 hectares of cultivable land.
- The farmer must be between 18 to 40 years old.
Who Aren’t Qualified To Apply
Given below are some of the exclusion requirements that exclude farmers from the qualifications required to apply for the Pradhan Mantri Kisan Maandhan Yojana (PM-KMY):
- Other statutory social security systems that SMFs are covered by including the National Pension Plan (NPS), Employees’ State Insurance Corporation scheme, Employees’ Fund Organization Scheme, etc.
- The “Kisans” who have opted for the Ministry of Labour & Employment Pradhan Mantri Shram Yogi Maan Dhan Yojana (PM-SYM).
- Farmers who have chosen for the Ministry of Labour and Employment’s Pradhan Mantri Laghu Vyapari Mandhan Yojana (PM-LVM)
- Furthermore, the following types of higher-income beneficiaries are not eligible for benefits under the scheme:
- All landowners who are institutions; and
- Former and present holders of constitutional offices
- Previous and current members of the Lok Sabha, Rajya Sabha, State Legislative Assemblies, and State Legislative Councils, as well as former and current mayors and chairpersons of municipal corporations.
- All serving or officers who have retired and employees of Central/State Government Ministries/Offices/Departments and their field units, Central/State PSEs and Attached offices/Autonomous Institutions under Government, and regular employees of Local Bodies (excluding Multi Tasking Staff / Class IV/Group D employees) are eligible.
- Professionals who have registered with professional organizations and are practicing their vocation include doctors, engineers, lawyers, chartered accountants, and architects.
How To Apply: The Registration Process
Given below is an informative guide to help you go through the application process for the Yojana:
Step 1: Eligible SMFs interested in joining the initiative may bring their Aadhaar card and bank passbook or account data to the nearest Common Service Centre (CSC).
Step 2: After collecting Aadhaar number, name, date of birth, spouse and nominee details, cell phone number (optional), address, and a few other information, the Village Level Entrepreneur (VLE) present at the CSC will complete the online registration procedure.
Step 3: The online registration process includes gathering bank account information and completing an auto-debit mandate to the subscriber’s bank account, which will debit the subscriber’s bank account with the contribution amount every month. There will be a demand.
Step 4: The subscriber’s mobile number (optional) will be validated using the OTP verification process.
Step 5: By signing the online generated enrolment form, the subscriber authenticates the information.
Step 6: The VLE will upload a scanned copy of the signed enrolment-cum-debit mandate form, then allow him to pay his initial contribution online and provide him with a receipt.
Step 7: The online registration process would be complete at this point, and the system would generate a Pradhan Mantri Kisan Maandhan (PM-KMY) Pension Card with a conspicuously printed unique Pension Account Number.
Step 8: Following the conclusion of the enrolment process and payment of the initial contribution, an enrolment-cum-auto-debit-mandate form will be prepared and signed by the farmer to obtain approval for auto-debiting from their PM-Kisan benefits through their bank accounts.
Some Important Definitions
Beneficiary refers to the subscriber and, in the event of their death, his or her spouse.
The amount specified in the contribution chart attached to this Scheme, as modified by the Government from time to time, is to be paid monthly or on a periodic basis by an eligible subscriber to the scheme.
Common Service Centre e-Governance Services India Limited – Special Purpose Vehicle(CSC)
It is a Ministry of Electronics and Information Technology-backed company (MeitY).
The government’s chosen agency for subscriber enrollment is referred to as the “Enrolling Agency.” The enrolling agency is currently CSC-SPV and State Nodal Officers (SNOs) or an agency chosen or nominated by them.
It has the following meanings:
- Effective Date in relation to original subscribers; and
- Date of Joining in relation to new subscribers admitted to the Scheme after the Effective Date.
A Small and Marginal Farmer who meets the eligibility criteria to join this Scheme is referred to as an “eligible subscriber.”
It refers to the fund established by the Central Government and managed by the LIC of India, into which subscribers’ contributions and the government’s matching contributions will be deposited. The Pension Fund under the scheme is made up of the Government Pool Account and the Subscriber’s Individual Account (hereinafter referred to as the “SIA”).
Deduction Due To Income Tax
If the DAC&FW or the Corporation is required to account to the Income Tax Authorities for Income Tax on any payments due under the Scheme, the Corporation shall deduct an amount equal to the tax from the payment and shall not be liable to the subscribers for the amount deducted.
Nomination In The PM Kisan Yojana
- Every Subscriber must name a spouse or dependant as a Beneficiary or Beneficiaries under the Scheme to receive the benefits in the event of the Subscriber’s death.
- Every appointment/nomination made under this Rule must be in writing and signed by the subscriber, and it must remain in full force and effect until the Beneficiary’s death or until the appointment/nomination is revoked in writing by the subscriber who made it and a new appointment/nomination is made in the manner aforesaid.
- A subscriber may revoke or change the nominee at any time, without the consent of the nominee, if any, by filling out a written notice of the change online or at the CSC in the prescribed form, after which the subscriber will receive an acknowledgment of the change and the registration of the new Nominee’s name online / at the CSC.
- If a Nominee is a minor or otherwise unable to give a legal receipt or discharge to the LIC at the time of his appointment, the subscriber must appoint a person who is a major and capable of giving a legal receipt to the Organization and to whom the benefits are to be given to and on behalf of such Nominee for as long as such minority or disability exists.
- If more than one Nominee is legally mentioned, and the Subscriber fails to specify their respective interests in such appointment, the Nominees so named will share equally. Unless the Subscriber has made a written request to the LIC in the prescribed form, if any designated Nominee predeceases the Subscriber, his or her interest will terminate, and his or her share will be paid equally to the remaining Nominees who survive the Subscriber.
We hope this blog post was informative and helped you through any difficulties you faced before. For more detailed information on the PM Kisan Registration, go to the official website, maandhan.in.