Pradhan Mantri Garib Kalyan Yojana (PMGKY) was launched by the Government of India and came into effect in 2016. It allows individuals to deposit money that has not been taxed. Under the scheme, 50% of the untaxed amount must be paid. The scheme was initially valid from December 2016 to March 2017. However, it was later extended till the month of June 2020.
Extension of Pradhan Mantri Garib Kalyan Yojana
On 30th June, Prime Minister Narendra Modi announced that the Pradhan Mantri Garib Kalyan Yojana was extended till the end of November 2020.
Package of Rs.1.70 lakh crore announced by Finance Minister
Union Finance Minister Nirmala Sitharaman announced a package of Rs.1.70 lakh crore under the scheme shortly after the announcement of national lockdown. As part of the package, government announced medical insurance coverage of Rs.50 lakh per person to around 20 lakh COVID-19 warriors.
The benefits of the package were divided into two parts. They are:
- Food security
- Direct Benefit Transfer (DBT)
As part of food related relief measures, the government announced that around 80 crore people will be receiving 5 kg of rice or wheat along with one kg of preferred pulse every month till the end of November. This benefit will be provided in addition to the 5 kg of rice or wheat already provided every month.
Direct Benefit Transfer (DBT)
While under DBT (Direct Benefit Transfer), specific announcements were made by the Finance Minister.
- Benefit to farmers: Farmers will be provided an additional amount of Rs.2,000 by the government as front-load under the Kisan Samman Nidhi program.
- Increase in daily wage: The daily wage of workers under MNREGA (Mahatma Gandhi National Rural Employment Guarantee Act) has been increased to Rs.202 for the next 100 days. It is expected to benefit 5 crore families.
- Ex-gratia of Rs.1,000: The government will be providing 3 crore poor senior citizens, disabled persons and widows ex-gratia of Rs.1,000 over three months.
- Free LPG cylinders: Free LPG cylinders will be provided for the next three months to 8.3 crore BPL families that hold LPG connections under the Ujjwala scheme.
- Ex-gratia for women account holders: 20 crore women account holders under the Jan Dhan Yojana Scheme will be receiving ex-gratia amount of Rs 500 for the next three months.
- Avail collateral-free loans: Under National Rural Livelihood Mission (NRLM), 63 lakh women Self-Help Groups (SHGs) will be able to avail collateral-free loans up to Rs.20 lakh.
- EPF benefit for workers from organized sector: For the next three months, the Government will pay the EPF contribution for both employer and employee (12% each). Establishments which have employees up to 100 with 90 percent of them drawing salary below Rs.15,000 per month will be benefited by the move. The government also amended regulations of EPFO to allow employees avail non-refundable advance of three months’ salary, or 75% of the total fund, whichever is lower.
- Utilization of welfare and district mineral fund: The government has directed state governments to utilise welfare fund and district mineral fund. While the welfare fund is being asked to protect the construction workers, the district mineral fund is to be used for screening, testing, and other requirements in order to combat COVID-19.
FAQ's on PMGKY
- What cover is provided under the scheme?
The cover that is provided by the accident insurance scheme is mentioned below:
- Accidental death because of COVID-19 duty.
- Death due to COVID-19.
Beginning from 30 March 2020, the insurance policy is valid for 90 days.
No, individuals do not need to enroll in the scheme.
Under the scheme, there is no age limit.
No, expenses that have been incurred due to quarantine or treatment are not covered under the scheme.
PMJDY Top Pages
- Pradhan Mantri Jan Dhan Yojana
- Application Form for Jan Dhan Yojana
- How to Transfer Old Accounts Under PMJDY
- Zero Balance Account through PMJDY
- PMJDY Benefits
- How to Open PMJDY Account for Minor
- Pradhan Mantri Jan Dhan Yojana Eligibility
- PMJDY Overdraft Facilities and Benefits
- Small Account or Chota Khata Account Under Jan Dhan Yojana