Pradhan Mantri Kisan Maandhan Yojana (PM-KMY)

Overview

The Pradhan Mantri Kisan Maandhan Yojana (PM-KMY) is a voluntary and contributory pension scheme launched on 12 August 2019 by the Government of India to provide old-age social security to Small and Marginal Farmers (SMFs). The scheme operates on a 50:50 co-contribution model where the Central Government matches the farmer’s monthly contribution rupee-for-rupee, with the pension fund managed by the Life Insurance Corporation of India (LIC).

The scheme targets approximately 5 crore small and marginal farmers across India. As of September 2025, over 25 lakh farmers have enrolled, with Bihar leading registrations (over 3.4 lakh) followed by Jharkhand (over 2.5 lakh). Farmers who contribute regularly receive a guaranteed monthly pension of ₹3,000 upon attaining the age of 60.

Eligibility Criteria

Who Can Join

• All Small and Marginal Farmers (SMFs) with cultivable landholding of up to 2 hectares as per the land records of the respective State/UT.
• Age of the farmer must be between 18 and 40 years at the time of entry.
• Farmers must have an Aadhaar number and a savings bank account or Jan Dhan account.

Who Is Excluded

• Farmers already covered under PM-SYM (Pradhan Mantri Shram Yogi Maandhan Yojana), NPS (National Pension System), or ESIC (Employees’ State Insurance Corporation).
• Farmers paying income tax under the Income Tax Act.
• Farmers registered under other social security schemes of the Central Government.

Contribution Structure

The monthly contribution depends on the age at entry and ranges from ₹55 to ₹200:

Contributions are auto-debited from the farmer’s bank account and the Central Government’s matching share is credited simultaneously by the Government.

Benefits and Provisions

Pension Benefit

• On attaining the age of 60 years, the farmer receives a guaranteed pension of ₹3,000 per month (₹36,000 per annum).
• Pension is credited directly to the beneficiary’s bank account.

Family Pension (Spousal Benefit)

• If the subscriber passes away while receiving pension, the spouse is entitled to a family pension of 50% of the pension amount, i.e., ₹1,500 per month.
• This benefit is available only if the spouse is not already an independent beneficiary of PM-KMY.

Exit and Withdrawal

• If a farmer exits within 10 years of joining, only the farmer’s contribution is refunded with savings-bank interest.
• If a farmer exits after 10 years but before 60, the farmer’s contribution is refunded with accumulated interest as earned by the pension fund or at savings-bank interest, whichever is higher.
• In case of death before 60, the spouse may continue the scheme by paying the remaining contributions, or exit and receive the farmer’s share with interest.

Implementation Mechanism

• Nodal Ministry: Ministry of Agriculture and Farmers’ Welfare (MoAFW).
• Pension Fund Manager: Life Insurance Corporation of India (LIC) manages the corpus, ensuring secure and stable returns.
• Registration Channels: Common Service Centres (CSCs) across India and State Government facilitation centres. Farmers can also self-enrol via the Maandhan portal (maandhan.in).
• Verification: Aadhaar-based authentication and cross-referencing with PM-KISAN beneficiary data and State land records.
• The scheme is part of the broader Maandhan platform that also covers PM-SYM (for unorganised workers) and PM-LGM (for traders).

Latest Developments

• Enrollment remains at approximately 25 lakh farmers as of September 2025 — far below the 5 crore target, indicating persistent challenges in awareness and uptake
• PM-KMY completed five years in August 2024 — the government highlighted it as India’s first pension scheme exclusively for small and marginal farmers
• PM-KISAN integration operational — small and marginal farmers can now use their PM-KISAN income support (Rs 6,000/year) to make voluntary contributions towards PM-KMY pension
• Bihar leads enrollment with over 3.4 lakh registered farmers, followed by Jharkhand (over 2.5 lakh), reflecting regional variation in awareness and CSC infrastructure
• Maandhan portal (maandhan.in) self-enrollment continues alongside CSC-based registration; the portal also covers PM-SYM (unorganised workers) and PM-LGM (traders) under the same platform
• Key challenges identified — irregular farm incomes making monthly auto-debit contributions difficult, low awareness of the scheme in remote areas, and inadequate Common Service Centre infrastructure in underserved regions

Prelims Importance

• PM-KMY was launched on 12 August 2019 — a voluntary and contributory pension scheme, not a direct benefit transfer scheme.
• Provides ₹3,000/month pension after age 60 to small and marginal farmers with landholding up to 2 hectares.
• Contribution ranges from ₹55 to ₹200/month based on entry age (18–40 years); Government matches 1:1.
• Fund managed by LIC (Life Insurance Corporation of India).
• Family pension: ₹1,500/month (50%) to the surviving spouse.
• Enrollment through Common Service Centres (CSCs) and the Maandhan portal.
• Target: 5 crore farmers; enrolled as of 2025: ~25 lakh.
• Part of the Maandhan platform alongside PM-SYM and PM-LGM.

Mains & Interview Importance

GS Paper 2 — Governance, Social Justice

• Social security architecture: PM-KMY is India’s first pension scheme exclusively for small and marginal farmers. Discuss its significance in the context of unorganised sector welfare (Article 41 — right to public assistance in old age).
• Implementation challenges: Why has enrollment (~25 lakh) remained far below the 5 crore target? Factors include low awareness, irregular farm incomes making monthly contributions difficult, and poor CSC infrastructure in remote areas.

GS Paper 3 — Economy, Agriculture

• Agrarian distress and farmer welfare: How does PM-KMY complement PM-KISAN (income support) and PM-FASAL Bima Yojana (crop insurance) in creating a comprehensive farmer safety net?
• Fiscal sustainability: Analyse the long-term fiscal implications of the Government’s 1:1 matching contribution commitment as enrollment scales up.

Interview Angles

• “Is ₹3,000/month pension adequate for a farmer’s post-retirement needs, given rural inflation?”
• “Why has PM-KMY enrollment been sluggish compared to PM-KISAN? What reforms would you suggest?”
• “Compare the social security needs of farmers with those of urban unorganised workers under PM-SYM.”

Sources: PIB — Five Years of PM-KMY, pmkmy.gov.in, CSC.gov.in — PMKMY, NextIAS — PM-KMY