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Difficulty: HardSocial Sector Initiatives, Welfare Schemes, and Social Security Architecture

Consider the following statements regarding the Pradhan Mantri Kisan Maan-Dhan Yojana (PM-KMY):

1. It is a Centrally Sponsored Scheme implemented on a 60:40 fund-sharing pattern between the Central and State Governments.
2. Small and marginal farmers holding cultivable land up to 2 hectares between the entry age of 18 to 40 years are eligible to enroll.
3. The Life Insurance Corporation of India (LIC) serves as the designated Pension Fund Manager for managing the pension fund payouts.

Which of the statements given above are correct?

  1. A
    1 and 2 only
  2. 2 and 3 onlyAnswer
  3. C
    1 and 3 only
  4. D
    1, 2 and 3

Answer

Statements 2 and 3 are correct.
Statements 2 and 3 are correct. The PM-KMY offers a minimum assured monthly pension of ₹3,000 to small and marginal farmers (owning land up to 2 hectares) upon attaining 60 years of age, provided they enroll between 18 and 40 years. LIC administers the pension fund management. Statement 1 is incorrect because the scheme is a 100% Central Sector Scheme fully funded by the Central Government.

Step-by-Step Solution

1
Analyze Statement 1 regarding the administrative and financial structure of PM-KMY.
Statement 1 is incorrect because PM-KMY is a Central Sector Scheme (100% funded by the Central Government through the Ministry of Agriculture and Farmers Welfare), not a Centrally Sponsored Scheme requiring a 60:40 state matching contribution.
Central Sector Schemes are fully funded from the Union budget, whereas Centrally Sponsored Schemes involve cost-sharing with states.
2
Evaluate Statement 2 regarding beneficiary eligibility criteria.
Statement 2 is correct. Small and Marginal Farmers (SMFs) owning cultivable land up to 2 hectares as per land records of the concerned State/UT, aged between 18 and 40 years, are eligible to join the voluntary, contributory pension scheme.
The entry age bracket (18–40 years) and maximum landholding cap (2 hectares) define the target beneficiary group for PM-KMY.
3
Evaluate Statement 3 regarding the institutional pension manager.
Statement 3 is correct. The Life Insurance Corporation of India (LIC) acts as the Pension Fund Manager and is responsible for managing subscriber accounts and disbursing monthly pensions upon beneficiaries turning 60.
LIC handles fund management and monthly pension payouts of ₹3,000 under the scheme.

Key Concept

Pradhan Mantri Kisan Maan-Dhan Yojana (PM-KMY) Institutional Architecture and Eligibility
Estimated Time:1m 30s
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Topics

Social Sector Initiatives, Welfare Schemes, and Social Security Architecture