Pradhan Mantri Garib Kalyan Yojana (PMGKY) 2023: Scheme & Full Form

Pradhanmantri Garib Kalyan Yojna, or PGKY, was introduced by the Union Finance Ministry of the Government of India (GOI) in two different years with certain changes. The idea behind this scheme was to help the vulnerable or poor receive benefits related to taxation and financial turbulence owing to the recent COVID-19 pandemic. Read on to explore a comprehensive overview of the two versions of the pradhan Mantri Garib Kalyan yojana to help readers get the most out of these schemes. 

Pradhan Mantri Garib Kalyan Yojana (2016)

The 2016 Pradhan Mantri Garib Kalyan Yojana is a scheme announced by the Government of India in December 2016. This scheme was designed along the lines of the Income Declaration Scheme, 2016, and the Taxation Laws (2nd amendment) Act, 2016. The scheme allowed individuals to declare unaccounted wealth by depositing a fine of 50% of the concealed income. It also provided an opportunity to invest an additional 25% of the undisclosed wealth in the scheme, which can be later refunded after four years, with no interest. 

Failure to declare undisclosed income under the Pradhan Mantri Garib Kalyan Yojana will attract a penalty of 77.25% if the income is reflected in tax returns. In situations where the undisclosed income is not reflected in tax returns, it will attract a fine of 10%, followed by prosecution. 

Various iterations have been made since its launch. This scheme was initially valid from December 2016 to 31st March 2017 but was later extended until the month of June 2020. and the scheme can only be availed when the income declaration is made in the form of bank or cash deposits in any Indian bank account. This scheme will not accept deposits in the form of jewellery, immovable properties, stocks, or non-Indian bank accounts. 

Pradhan Mantri Garib Kalyan Yojana (2020)

Pradhan Mantri Garib Kalyan Yojana again saw more ramifications in 2020 with new changes inserted. One such significant change is the Pradhan Mantri Garib Kalyan Yojana, 2020. In March 2020, a nationwide lockdown was imposed, which resulted in an immediate financial crisis among the poor, mainly migrant labourers. 

What is Pradhan Mantri Garib Kalyan Yojana 2020?

In order to alleviate the financial snowball effects of the COVID-19 pandemic and lockdown on those affected, Nirmala Sitharaman, the Union Finance minister, as per the approval from the Government of India, announced a 1.70 lakh crore INR (24 billion USD) relief package as a part of Pradhan Mantri Garib Kalyan Yojana. This package came shortly after the announcement of the coronavirus-induced lockdown on 24th March 2020. 

On 1st June 2021, it was declared that the validity of the Pradhan Mantri Garib Kalyan Yojana had been extended for another year, effective from 24th April 2021. The Government of India also resurrected the insurance coverage for an additional year to ensure that the dependents of COVID-19 warriors, i.e., medical units or staff assigned duties for COVID-19 patients. 

Benefits of Pradhan Mantri Garib Kalyan Yojana

As mentioned earlier, the 2020 Pradhan Mantri Garib Kalyan Yojana's benefits can be separated into two parts. Let us look at them in detail.

Food security

One of the core issues of the migrant and poor population during the coronavirus was food accessibility. Thus, as a part of a food-related relief package, the government of India announced that around 80 crores of the rural population would receive 5 kilograms of rice or wheat. 

In addition, they can also avail of one kilogram of preferred pulse every month. These food relief packages can be availed until the end of November 2020. The central government highlighted that the food distribution under this scheme is provided in addition to the 5KG of wheat or rice already availed every month.

Direct Benefit Transfer or DBT

Under the direct benefit transfer scheme, various specific announcements were outlined by Nirmala Sitaraman, Finance minister of the Union Finance Ministry of the Government of India, which are:

For farmers: Farmers will be given INR 2000 as an additional amount by the central government under the Kisan Samman Nidhi Program or KSNP scheme. 

For vulnerable populations: Central government will provide ex-gratia of INR 1000 over three months to 3 crore poor senior citizens, disabled persons, and widows. Twenty crore women account holders will receive an ex-gratia amount of Rs. 500 for three months under the Jan Dhan Yojana. Assignments of free LPG cylinders to 8.3 crore families Below the Poverty Line or BPL that hold LPG connections will be made under the Ujjwala scheme. Sixty-three lakh women self-help groups or SHGs will receive collateral-free loans up to INR 20 lakhs under the National Rural Livelihood Mission (NRLM). 

For daily wage workers: Daily wage workers employed under MNREGA or Mahatma Gandhi National Rural Employment Guarantee Act will receive an increased wage of Rs 2020 for the next 100 days. This scheme is likely to benefit around five crore families. 24% of the total monthly payment of wage workers who earn less than INR 15,000 per month in businesses (with 100 or fewer workforce) will be deposited into their PF accounts.

For employers and employees: Through the funding of RS 31,000 by the central government of India, nearly 3.5 crores registered workers will receive protection against financial disruptions. The central government will provide a 12% EPF benefit for workers (both employer and employee) from the organised sectors. Organisations that have employees up to 100, with 90% of employees drawing a wage less than 15,000 INR per month, will reap benefits from this scheme. Amendment in the regulations of the EPFO to help employees avail non-refundable advance salary of three months or 75% of the total fund- whichever is lower.

For everyone: The Union government has also directed state governments to use the district mineral fund and welfare fund. District mineral fund is to be strictly used for screening, testing, and other needs relevant to combating the COVID-19 pandemic. Similarly, the welfare fund will be used to protect the construction workers economically. 

For COVID-19 health workers: The scheme financially protects healthcare workers who are directly engaged with COVID-19 patients. An amount of INR 50 Lakh will be allotted as a part of the health insurance scheme under the Pradhan Mantri Garib Kalyan Yojana. The health insurance scheme of the 2020 Pradhan Mantri Garib Kalyan Yojana covers any death due to coronavirus or any accidental death due to COVID-19 responsibilities. 

Pradhan Mantri Garib Kalyan Yojana- Insurance scheme for COVID-19 health workers

Given the increased risk of working with COVID-19 patients, an insurance scheme under the Pradhan Mantri Garib Kalyan Yojana- 2020 was also announced for health workers engaged in COVID-19-related duty. The duration of the insurance scheme is 90 days, effective from 30th March 2020.

 An amount of INR 50 Lakhs will be received if claimed by the insured person. The entire amount under this scheme is borne by the Ministry of Health and Family Welfare (MHFW), Government of India. However, it should be noted that any expenses incurred on treatment or during quarantine will not be covered under this scheme. 

Any person engaged by either public or private healthcare organisations or institutions who work directly with COVID-19 patients or have come in direct contact with patients affected with coronavirus can avail of the Pradhan Mantri Garib Kalyan Yojana scheme. However, proof that the service was engaged by the organisations or institutions must be produced. There is no specific age limit for this scheme as well, and no individual enrolment is required to avail of this scheme. As per the new announcement, the settlement of any health insurance claims is to resolve within 48 hours. 

The following healthcare providers (engaged via public or private healthcare systems) are covered in this scheme. 

• Community health worker
• Public healthcare providers
• Private hospital staff
• Retired, volunteer, daily wage, outsourced staff, or local urban bodies undergoing COVID-19-related responsibilities. 

Pradhan Mantri Garib Kalyan Yojana- Eligibility

Specific eligibility criteria needs are met before initiating the application process. 

• Only those businesses with up to 100 workers with a monthly salary income of INR 15,000 are eligible.
• There are no age or gender restrictions to apply for this scheme. 

The unified scheme portal has been updated to assist qualifying applicants in receiving benefits. No changes have been made regarding the ECR filling process or ECR format. However, before filing the ECR, the applicant/employer needs to file a declaration. 

Required Documents to initiate the application process for the Pradhan Mantri Garib Kalyan Yojana

The following documentation is required to be ready before initiating the Pradhan Mantri Garib Kalyan Yojana application process:

• Income documents supporting the above criteria. 
• Jan Dahn Account in an RBI-authorised bank

Individuals claiming health insurance benefits under the scheme need to provide the following documents:

• Certified identity proof of the deceased
• Certified identity proof of the claimant
• Duly filed and signed Claim form by the claimant.
• Certified proof of relationship between the claimant and the deceased
• Original and certified copy of laboratory report stating testing positive for COVID-19
•  Original death certificate
• In case death occurred in the hospital, the claimant needs to provide a death summary report by the hospital where the deceased succumbed to COVID-19.
• Certificate by the healthcare organisation or institution stating that the deceased was engaged by the healthcare system and deployed on COVID-19-related duties. 
• In case of accidental loss of life due to coronavirus, a certified copy of FIR is also needed to be furnished. 

Once all the above-mentioned documents have been collected, the claim form and the concerned documents should be submitted to the competent authority for their approval. A more detailed account of the required documents has been provided on the Ministry of Health and Family Welfare website. 

Pradhan Mantri Garib Kalyan Yojana- Application Process

Applying for the Pradhan Mantri Garib Kalyan Yojana scheme 2020 is fairly simple. The below-mentioned application process needs to be followed before availing of this scheme:

• Applicant needs to have an active Jan Dhan Account in any Indian deposit bank authorised by the Reserve Bank of India (RBI). 
• Applicants need to submit income documents supporting the claim that they are eligible for the Pradhan Mantri Garib Kalyan Yojana scheme. Kindly note there is no age limit to apply for this scheme.
• Once the income documents are submitted, they will be screened, processed, and verified internally.  
• Finally, after the confirmation of the status of the Pradhan Mantri Garib Kalyan Yojana application, the applicant will be able to draw benefits from the scheme. 

Key Features of Pradhan Mantri Garib Kalyan Yojana

• 2016 Pradhan Mantri Garib Kalyan Yojana allowed individuals to deposit undisclosed income (or income that has not been taxed), which came into effect in December 2016.
• 2020 Pradhan Mantri Garib Kalyan Yojana was announced as a financial relief package of 1,70,000 INR for the poor, migrant workers, and COVID-19 warriors. 
• The Pradhan Mantri Garib Kalyan Yojana scheme aimed to cater to 80 crores of India's rural and poor populations. 
• The benefits of the packages can be availed in two parts: food security and direct benefit transfer or DBT. 
• The scheme was inclusive of women, the disabled population, and pension holders. 
• Officials of the central government have reportedly claimed to distribute rice, pluses, and wheat-based produce to the vulnerable in addition to already existing food distribution allotment. 
• The 2020 Pradhan Mantri Garib Kalyan Yojana is outlined to help the needy survive the deadly covid-19 pandemic and induced lockdown. 
•  Pradhan Mantri Garib Kalyan Yojana- 2020 was also announced for health workers engaged in COVID-19-related duty. Through this, the scheme applicant could claim an amount of INR 50 lakh within 90 days, effective from 30th March 2020. 
•  The entire amount under the medical insurance scheme is borne by the Ministry of Health and Family Welfare (MHFW), Government of India. 

Frequently Asked Questions (FAQs)

What is 2016 Pradhan Mantri Garib Kalyan Yojana?

2016 Pradhan Mantri Garib Kalyan Yojana is a scheme that allows individuals to declare unaccounted wealth by depositing a fine of 50% of the concealed income. It also provided an opportunity to invest an additional 25% of the undisclosed wealth in the scheme, which can be later refunded after four years, with no interest.

What is 2020 Pradhan Mantri Garib Kalyan Yojana?

Pradhan Mantri Garib Kalyan Yojana or PMGKY is a 1.70 Lakh crore relief package announced for the migrant workers and rural and urban poor to financially aid them in fighting against coronavirus. This package is a comprehensive package that helps the poor and needy buy essential household supplies and needs.

When is the pradhan Mantri Garib Kalyan Yojana launch date?

Pradhan Mantri Garib Kalyan Yojana was announced in 2016 by the Government of India. During the national lockdown owing to the COVID-19 pandemic, the scheme took a new form when a relief fund of 1.70 Lakh was later announced in March 2020 for the poor and vulnerable. 

How many people currently receive financial assistance from the Pradhan Mantri Garib Kalyan Yojana package?

As the official website of the government of India states, more than 42 crore poor individuals are availing of financial assistance under the Pradhan Mantri Garib Kalyan Yojana Package. In addition, 22 lakh health workers are currently provided health insurance coverage to fight the pandemic. 

What is medically covered under the Pradhan Mantri Garib Kalyan Yojana?

Any death due to coronavirus or any accidental death due to COVID-19 duty is covered under the health insurance scheme of Pradhan Mantri Garib Kalyan Yojana 2020. 

Who is eligible for the Pradhan Mantri Garib Kalyan Yojana?

Pradhan Mantri Garib Kalyan Yojana 2016 is applicable to all employers whose employees are getting wages less than 15000/month. Likewise, Pradhan Mantri Garib Kalyan Yojana 2020 is for the poor, migrant workers, and COVID-19 warriors. 

Is enrolling in the Pradhan Mantri Garib Kalyan Yojana a requirement to benefit from the scheme?

No. Enrolling in this scheme is not mandatory. 

Is there any validity of the insurance policy under the Pradhan Mantri Garib Kalyan Yojana scheme?

Yes, the insurance policy under this scheme is only valid for 90 days, effective from 30th March 2020.

Is there an age limit for workers under this scheme?

No, no specified age limit is there for workers under this scheme.