Prime Minister Narendra Modi launched pension schemes for farmers, shopkeepers and self-employed persons on September 12 in Ranchi.

The scheme shall secure the lives of 5 crore small and marginal farmers by providing a minimum pension of Rs 3,000 per month, to those who attain 60 years of age.

“I said that every farmer family of the country will get the benefit of PM Kisan Samman Nidhi after the formation of the new government. Today, more than Rs 21,000 crore have been deposited in the accounts of about six-and-a-half crore farmer families of the country,” Modi said.

The PM also launched the National Pension Scheme for traders and the self-employed.

PM Kisan Maan Dhan Yojana

The Pradhan Mantri Kisan Maan Dhan Yojana will help small and marginal farmers by providing a minimum pension of Rs 3,000 per month, on attaining the age of 60 years.

Farmers who are currently between 18 and 40 years of age can apply for the scheme.

The farmers will have to make a monthly contribution of Rs 55 to Rs 200, depending on their age of entry, in the pension fund till they reach the retirement age of 60 years.

The central government will also make an equal contribution of the same amount in the pension fund.

The scheme has an outlay of Rs 10,774 crore for the next three years.

The Life Insurance Corporation of India (LIC) is the pension fund manager and responsible for pension payout.

In case of default in making regular contributions, the beneficiaries are allowed to regularise the contributions by paying the outstanding dues along with prescribed interest.

The initial enrollment to the scheme is being done through the Common Service Centres in various states.

Farmers who are also beneficiaries of the PM-Kisan scheme will have the option to allow their contribution debited from the benefit of that scheme directly.

Pension scheme for shopkeepers

The Pradhan Mantri Laghu Vyapari Maan Dhan Yojana is a scheme for shopkeepers and retail traders for providing monthly minimum assured pension of Rs 3,000 for the entry age group of 18-40 years.

The provisions of the scheme shall apply to laghu vyaparis, who are self-employed and working as shop owners, retail traders, rice mill owners, oil mill owners, workshop owners, commission agents, brokers of real estate, owners of small hotels and restaurants, whose annual turnover does not exceed Rs 1.5 crore based on self-declaration.

The operations of such small traders are generally characterised by family owned establishments, small scale of operations, labour intensive, inadequate financial aid, seasonal in nature and extensive unpaid family labour.

The eligible beneficiary will have to make a monthly contribution of Rs 55 to Rs 200 depending upon their age limit. The government will make an equal contribution to the beneficiary account.