Pradhan Mantri Kisan Maan Dhan Yojana

The government launched the Pradhan Mantri Kisan Maan Dhan Yojana (PM-KMY) for providing social security to the small and marginal farmers when they become old. The PM-KMY provides financial assistance to farmers in their old age when they do not have any means of livelihood and minimal or no savings for taking care of their expenses. The KM-KMY is effective from 9th August 2019.

Although the government supported the farmers in terms of income and price support, a need was felt to provide a social security net for farmers in their old age as it may result in loss of livelihood. Farming requires hard work in the fields and old age makes it challenging to do the farm-work.

The problem is aggravated with the small and marginal farmers as they do not have any savings or have minimal savings. Thus, the government introduced the PM-KMY to provide assured monthly pensions to old age small and marginal farmers, irrespective of male or female, who attain 60 years of age.

Features of PM-KMY

• The Department of Agriculture, Cooperation and Farmers Welfare, Ministry of Agriculture and Farmers’ Welfare, in partnership with the Life Insurance Corporation of India (LIC), administers the PM-KMY. 
• The LIC is the Pension Fund Manager and responsible for the pay-out of pension under the PM-KMY. 
• The PM-KMY is a periodic and voluntary contribution-based pension system for all landholding small and marginal farmers throughout India.
• The small and marginal farmers have the option to make their voluntary contribution payment to the PM-KMY directly from the financial benefits received under the PM-KISAN scheme.
• Through the Department of Agriculture Cooperation and Farmers Welfare, the Central Government contributes an equal amount as contributed by the eligible farmer to the pension fund under the PM-KMY.

Benefits of PM-KMY

Under the PM-KMY, a minimum fixed pension of Rs.3,000 per month is given to the small and marginal farmers on attaining 60 years, subject to certain exclusion criteria. It is a voluntary contributory pension scheme. The eligible farmers need to contribute to a Pension Fund of the amount ranging between Rs.55 to Rs.200 every month, depending on their entry age. 

The Central Government also contributes an equal amount as contributed by the farmers to the Pension Fund. On the death of the eligible farmer, the farmer’s spouse is entitled to receive 50% of the pension as a family pension. However, the family pension is applicable only to the spouse of the farmer.

Eligibility Criteria for PM-KMY

• Small and marginal farmers who own cultivable lands up to 2 hectares as per the land records of the respective State/UT.
• The age of the farmers should be between 18 to 40 years.

The following category of farmers are excluded under the PM-KMY:

• Small and marginal farmers are covered under other statutory social security schemes such as the Employees’ State Insurance Corporation scheme, National Pension Scheme (NPS), Employees’ Fund Organization Scheme, etc.
• Farmers who have opted for the Pradhan Mantri Shram Yogi Maan Dhan Yojana (PM-SYM) and are administered by the Ministry of Labour and Employment.
• Farmers who have opted for the Pradhan Mantri Laghu Vyapari Maan-Dhan Yojana (PM-LVM) administered by the Ministry of Labour and Employment.
• The following beneficiaries of the higher economic status are not eligible for the benefits under the scheme:
  • All institutional landholders,
  • Present and former holders of constitutional posts,
  • Present and former Ministers, Chairpersons of District Panchayats, Mayors of the Municipal Corporations, State Ministers and Members of Rajya Sabha, Lok Sabha, State Legislative Councils, and State Legislative Assemblies.
  • Individuals who have paid income tax in the last assessment year.
  • Professionals like Engineers, Doctors, Chartered Accountants, Lawyers and Architects registered with the respective professional bodies and undertaking practice.
  • All retired and serving employees and officers of the Central or State Government, Departments and their field units, Ministries, Central or State PSEs and attached offices, autonomous institutions under the government and regular employees of the Local Bodies (Excluding Class IV/Multi Tasking Staff /Group D employees)

Application Procedure for PM-KMY

The enrollment for PM-KMY can be done online as well as offline. The farmer can enrol online for PM-KMY through self-registration on the MAANDHAN portal. The enrollment for the PM-KMY is free of cost. 

The process of enrollment for PM-KMY offline is as follows:

• The eligible small and marginal farmers should visit the nearest Common Service Centre (CSC) and apply for the PM-KMY along with the following documents:
  • Aadhaar card
  • Savings bank account number with IFSC Code 
• The initial contribution amount should be made in cash to the Village Level Entrepreneur (VLE). 
• The VLE will enter the name of the subscriber, the Aadhaar number and date of birth as printed on an aadhaar card for authentication online.
• The VLE shall complete the online registration for the PM-KMY by filling in the details like mobile number, bank account details, spouse (if any), email address and nominee details of the eligible farmer.
• The online system will automatically calculate the monthly contribution to be paid by the farmer according to the age of the farmer/subscriber.
• The subscriber needs to pay the first subscription amount to the VLE in cash.
• The printed Enrolment cum Auto Debit mandate form should be signed by the subscriber. The VLE will scan the same and upload it online.
• A unique Kisan Pension Account Number (KPAN) is generated, and the Kisan Card will be printed.