PMGKY - Pradhan Mantri Garib Kalyan Yojana

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: 

  1. Food security 
  2. Direct Benefit Transfer (DBT) 

Food security

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. 


  1. What cover is provided under the scheme?
  2. 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.
  3. How long is the insurance policy valid for?
  4. Beginning from 30 March 2020, the insurance policy is valid for 90 days.

  5. Do individuals need to enroll in the scheme?
  6. No, individuals do not need to enroll in the scheme.

  7. In the case of health workers, what is the age limit?
  8. Under the scheme, there is no age limit.

  9. Under the scheme, are expenses that have been incurred due to quarantine or treatment covered?
  10. No, expenses that have been incurred due to quarantine or treatment are not covered under the scheme.

News About Pradhan Mantri Garib Kalyan Yojana

  • Benefits under PMGKY may be extended till March 2021

    Social benefits under the Pradhan Mantri Garib Kalyan Yojana (PMGKY) may be extended to economically vulnerable households till March 2021 in view of the COVID-19 pandemic and related lockdowns. The additional support under the scheme by the central government will be in cash and in-kind benefits. Under the scheme, 81 crore individuals are being provided with 5 kilos of rice or wheat and 1 kilo of chana every month. The fresh stimulus will include cash transfers to 20 crore Jan Dhan accounts. The beneficiaries of the scheme would include 3 crore poor senior citizens, poor widows, and other groups that were already members of the PMGKY.

    19 Nov 2020

  • PM announces Pradhan Mantri Garib Kalyan Yojana extended till November 2020

    On Tuesday, the Prime Minister extended the Pradhan Mantri Garib Kalyan Yojana till November 2020 and under the scheme around 80 crore people will receive 5 kg of wheat or 5 kg of rice every month until November. The Prime Minister addressed the nation and stated that the families will also receive 1 kg of chana every month, and the entire cost of the initiative will be Rs.90,000 crore.

    During the speech, PM Modi also stated that the Central Government had announced a package of Rs.1,75 lakh crore and in the last 3 months, Rs.31,000 crore was deposited in the bank accounts of 20 crore families who were below the poverty line. Rs.18,000 crore was deposited in the bank accounts of more than 9 crore farmers as well.

    30 Jun 2020

  • Update from India Govt about Covid-19

    As a measure to help the poor and downtrodden people affected by Covid-19 lockdown, 5 kg of rice or wheat will be provided under the Pradhan Mantri Garib Kalyan Yojana for the next three months.

    This scheme is expected to benefit around 80 crore poor people spread across the country.

    30 Jun 2020

  • Under PM-GKY, Rs.31,000 crore disbursed to 20 crore Jan Dhan accounts

    Under the Pradhan Mantri Garib Kalyan Yojana scheme, approximately 20 crore Jan Dhan accounts have received Rs.31,000 crore as part of the economic support package in response to the Covid-19 pandemic. The PM Garib Kalyan Anna Yojana has also been extended till the end of November, costing the government Rs.90,000 crore. Under this scheme, 80 crore people will receive free ration of 5 kg wheat or rice and 1 kilo of chana. This was announced by Prime Minister Narendra Modi in his address to the nation today.

    13 Apr 2020

  • Around 16% of the EPFO subscribers are likely to be covered under the PM Garib Kalyan scheme

    According to a report, the PM Garib Kalyan scheme may provide cover to around 16% of the 48 million EPFO subscribers.

    According to an announcement made by the Financial Minister, EPF contribution of both employer and employee will be made by the Centre. This was part of the Rs.1.7 lakh crore that was provided under the scheme. However, companies with less than 100 employees, where less than Rs.15,000 is earned by less than 90% of the employees, will be provided this benefit. According to a senior official who provided this report, the EPF contribution will be provided by the Centre in the form of reimbursements. The contributions must be made by the employer over the next three months and proof of the same must be provided. The report further added that only one-third of the 563,000 establishments that come under the EPFO scheme will be covered. The Finance Minister also announced that an individual can also withdraw 75% of their non-refundable advance or 3 months’ salary, whichever is lower.

    31 Mar 2020

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