Pradhan Mantri Kisan Maan Dhan Yojana: Empowering Small and Marginal Farmers

Pradhan Mantri Kisan Maan Dhan Yojana (PM-KMY) is a government initiative aimed at providing social security to Small and Marginal Farmers (SMFs) in India. PM-KMY was officially launched by Prime Minister Narendra Modi on 12th September 2019 in Ranchi, Jharkhand​

It’s a voluntary and contributory pension scheme launched by the Ministry of Agriculture and Farmers Welfare. The scheme provides an assured monthly pension of ₹3,000 to all eligible small and marginal farmers after reaching the age of 60 years.

The main objective of PM-KMY is to ensure that farmers have a stable source of income post-retirement, particularly when they might have minimal or no savings and no means of livelihood, thus providing them with old age protection and social security. The scheme aims to cover around 5 Crore Small and Marginal Farmers.

Pradhan Mantri Kisan Maan Dhan Yojana Eligibility Criteria

  • The scheme is open to farmers aged between 18 to 40 years.
  • Small and Marginal Farmers (SMFs) are the primary beneficiaries of this scheme.
  • Small and Marginal Farmers having cultivable landholding up to 2 hectares, as per the land records of the concerned State/Union Territory as of 01.08.2019, are eligible to apply.
  • Enrollment in the scheme is voluntary, allowing farmers who meet the criteria to opt in or out as per their choice​

Who is not eligible for the scheme?

Large farmers, who own more than 2 hectares of cultivable land according to the land records of the concerned State/Union Territory. Also, applicants already registered in certain other schemes are ineligible for PM-KMY. Specifically, those who have applied for the National Pension Scheme (NPS), the Employees’ State Insurance Corporation (ESIC), or the Employees’ Provident Fund Organisation (EPFO) are excluded from benefiting from this scheme.

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PM-KMY Benefits

  • This scheme provides an assured monthly pension of Rs. 3,000 to the farmers after retirement at 60 years of age.
  • The scheme operates on a contributory basis, where the farmer and the Central Government make equal contributions to the pension fund. For instance, if a farmer contributes Rs. 100 per month, the Central Government will also contribute Rs. 100 per month to the Pension Fund on behalf of the farmer, effectively doubling the farmer’s contribution.
  • Should the applicant pass away before reaching 60, the spouse has the right to carry on with the scheme, receiving 50% of the pension amount.
  • If someone leaves the scheme within 10 years, they get back only what they paid in, with the savings bank interest rate.
  • If they leave after 10 years but before turning 60, they get back what they paid along with the actual accumulated interest earned by the Pension Fund or the savings bank interest rate, whichever is higher.
  • In instances where a beneficiary, who has been making consistent contributions, dies for any reason, the spouse is presented with two choices. They can either carry on with the scheme by continuing to make regular contributions, or they can choose to exit the scheme. If they choose to exit, they will receive the amount the beneficiary had contributed, in addition to the accumulated interest, which could either be the amount earned by the Pension Fund or the amount based on the savings bank interest rate, depending on which of the two is higher.
  • After the death of the beneficiary and the spouse, money goes back to the fund.

Note- Applicants between the ages of 18 and 40 will be required to make monthly contributions of between ₹55 and ₹200 per month until they reach the age of 60.

How to Apply for PM Kisan Maan Dhan Yojana?

  1. Interested candidates should go to the nearest Common Service Centre with the necessary documents like an Aadhaar Card and bank passbook.
  2. At the Common Service Center (CSC), the Village Level Entrepreneur will help complete the online registration by entering the applicant’s details such as name, Aadhaar number, spouse and nominee information, optional mobile number, address, date of birth, and other required details.
  3. Then in online registration bank account details will be entered and an automatic monthly debit for the contribution amount from the applicant’s bank account will be set up. The sponsor bank or IDBI, representing LIC of India, will manage this auto-debit setup.
  4. Then, the CSC personnel will manually verify the bank details using supporting documents and confirm demographic details through Aadhaar authentication.
  5. If a mobile number is provided, it will be verified through a One-Time Password (OTP) process.
  6. The applicant will review and approve the information on the online application form by providing their signature.
  7. The VLE will upload a scanned copy of the signed enrollment and debit mandate form, enabling the online payment of the initial contribution. A receipt will be given to the applicant once the payment is confirmed.
  8. With the online registration now complete, a Pradhan Mantri Kisan Maan-Dhan (PM-KMY) Pension Card with a unique Pension Account Number will be generated and given to the applicant.
  9. After enrollment and initial payment, a form will be generated for the applicant’s approval of automatic monthly debits from their PM-Kisan benefits through their bank account. This form needs to be signed by the applicant to complete the process.
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