PM-KMY scheme: The Pradhan Mantri Kisan Maandhan Yojana (PM-KMY), launched on September 12, 2019, has successfully completed five years of providing social security to land-holding small and marginal farmers (SMFs) across India. This scheme aims to ensure a pension for farmers, offering financial support and security in their old age.
What is Pradhan Mantri Kisan Maandhan Yojana?
Pradhan Mantri Kisan Maandhan Yojna (PM-KMY), is an old-age pension scheme. This is a voluntary and contributory pension scheme. Under the initiative, eligible small and marginal farmers are given a fixed monthly pension of Rs 3,000 after attaining the age of 60. Under PM-KMY, small and marginal farmers can enroll by paying a monthly subscription to the pension fund. Farmers aged between 18 and 40 years need to contribute between Rs 55 to Rs 200 per month until they turn 60.
Once they reach the age of 60, enrolled farmers receive a monthly pension of Rs 3,000, provided they meet the scheme's exclusion criteria. The Life Insurance Corporation (LIC) manages the pension fund, and beneficiary registration is facilitated through common service centres (CSCs) and state governments.
Who are eligible for the PM-KMY Scheme?
Under the PM-KMY, all small and marginal farmers who own up to two hectares of cultivable land, as per the land records of their respective state or UT, and are between the ages of 18 and 40 years are eligible to apply and benefit from the scheme.
However, farmers who fall under specific exclusion criteria are not eligible to avail the benefits of this scheme. The exclusion criteria include individuals already enrolled in other government pension schemes, or those whose income and status may disqualify them as per scheme guidelines.
As of August 6, 2024, a total of 23.38 lakh farmers have joined the scheme. Under the scheme, Bihar leads with over 3.4 lakh registrations while Jharkhand ranks second with over 2.5 lakh registrations. Further, Uttar Pradesh, Chhattisgarh, and Odisha have over 2.5 lakh, 2 lakh, and 1.5 lakh farmer registrations, respectively.
Key benefits under PM-KMY
- Minimum Assured Pension: Each subscriber to the scheme is guaranteed a minimum pension of Rs 3000 per month upon reaching the age of 60 years
- Family Pension: If a subscriber passes away while receiving their pension, their spouse will be entitled to a family pension equal to 50 per cent of the amount the subscriber was receiving which is Rs 1500 per month as family pension. This is only applicable if the spouse is not already a beneficiary of the scheme. The family pension benefit is exclusively for the spouse.
- PM-KISAN Benefit: SMFs can choose to use their PM-KISAN benefits to make voluntary contributions to the scheme. For this, eligible SMFs must sign and submit an enrolment-cum-auto-debit-mandate form. This will authorize automatic debit of their contributions from the bank account where their PM-KISAN benefits are credited.
- Equal Contribution by Government: The Central government, through the Department of Agriculture Cooperation and Farmers Welfare, also contributes an equal amount as contributed by the eligible subscriber, to the pension fund
- Monthly Contributions: Monthly contributions are in the range from Rs 55 to Rs 200, based on the farmer's age at the time of entry into the scheme, according to the contribution chart.
Benefits on leaving the scheme
- In case an eligible subscriber exits this scheme within a period of less than ten years from the date of joining the scheme, then the share of contribution by him only will be returned to him with savings bank rate of interest payable thereon.
- If an eligible subscriber exits after completion of a period of ten years or more from the date of joining the scheme but before his age of sixty years, then his share of contribution only shall be returned to him along with accumulated interest thereon as actually earned by the pension fund or the interest at the savings bank interest rate thereon, whichever is higher.
- If an eligible subscriber has given regular contributions and died due to any cause, his spouse shall be entitled to continue with the scheme subsequently by payment of regular contribution as applicable or exit by receiving the share of contribution paid by such subscriber along with accumulated interest, as actually earned thereon by the Pension Fund or at the savings bank interest rate thereon, whichever is higher
- After the death of the subscriber and his or her spouse, the corpus shall be credited back to the fund.
How to apply?
- The Eligible SMFs desirous of joining the scheme shall visit the nearest Common Service Centre (CSC).
- The prerequisites for the enrolment process are:
o Aadhaar card
o Savings bank account number along with IFSC code (Bank passbook or cheque leave/book or copy of bank statement as evidence of bank account).
- The initial contribution amount in cash will be made to the Village Level Entrepreneur (VLE).
- The VLE will key-in the Aadhaar number, name of subscriber and date of birth as printed on the Aadhaar card for authentication.
- The VLE will complete the online registration by filling up the details like bank account details, mobile number, email address, spouse (if any) and nominee details will be captured.
- The system will auto-calculate monthly contributions payable according to the age of the subscriber.
- The subscriber will pay the first subscription amount in cash to the VLE.
- Enrollment cum auto debit mandate form will be printed and will be further signed by the subscriber. VLE will scan the same and upload it into the system.
- A unique Kisan Pension Account Number (KPAN) will be generated and a Kisan Card will be printed.
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