PMGKY full form – the Pradhan Mantri Garib Kalyan Yojana, 2016 (PMGKY) was initiated by the Narendra Modi-led Government of India in December 2016. It was launched as a follow-up to the Income Declaration Scheme. It had been launched earlier that year. The program, which is part of the Taxation Laws (Second Amendment) Act of 2016, allowed people to register unaccounted cash by paying a fine of 50% of the concealed revenue. A further 25% of the gain is paid in the scheme. It can further be refunded without interest within four years.
It was again brought into more moderations in 2020, with several more changes than before. To alleviate the economic effects of the coronavirus-induced lockdown on the vulnerable, Prime Minister Narendra Modi announced a Rs 1.70 lakh crore relief scheme shortly after the lockdown was imposed on March 24.
The Union Government of India declared on June 1, 2021, that it had already extended the ‘Pradhan Mantri Garib Kalyan Package (PMGKP) Insurance Scheme for Health Workers Fighting COVID-19’ for one year, effective April 24, 2021. The Central Government resurrected this insurance coverage for a one-year period in order to continue providing a safety net to the dependents of health workers assigned to care for COVID-19 patients.
The PMGKY application process is very simple. An applicant just has to open a Jan Dhan Account in any bank that is authorized by the Reserve Bank of India. Next, the applicant will have to produce some required income documents. Once these documents are screened and verified, the applicant will be confirmed to be eligible to receive the benefits of the scheme.
The scheme was announced as part of the Pradhan Mantri Garib Kalyan Yojana (PMGKY) for the immediate benefit of businesses with up to 100 workers who earn less than INR 15,000 per month.
The Unified Portal has been updated to reflect the Scheme in order to assist qualifying employers in obtaining the benefit. There are no changes to the ECR filing process or format. Before filing the ECR, the employers would only need to file a declaration.
PMGKY keeps a simple process for everyone to avail. An applicant is needed to open a Jan Dhan Account in any bank authorized by the Reserve Bank of India. During this procedure, the applicant needs to furnish the income documents that will further be screened. After the completion of the screening, it is confirmed whether the applicant is eligible for the yojana or not.
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For Wage Workers |
The wage workers who earn below the amount of 15,000 for a month in a business and have less than 100 employees will be paid 24% of their monthly wages into their Provident Funds account for three months. |
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For Farmers |
Over eight crore farmers are said to benefit under the scheme with direct cash transfers. An installment of Rs.2000 is stated to be sent to these farmers in the first week of April. |
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For Women |
The women of self-help groups under the Deen Dayal Yojana who were earlier eligible for similar loans up to Rs.10 Lakhs will be allocated with a collateral-free loan of Rs.20 Lakh. A total of 20 crore women holding Jan-Dhan Yojana accounts will get a payment of Rs. 500 for the next three months from the launch of the plan. |
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For MGNREGA Workers |
Through this plan, the wages of MGNREGA employees were decided to be increased by Rs.2000 per worker. It eventually benefited five crores of Indian families. |
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For Organized Sectors |
The Union finance minister also announced a hike in PF and the withdrawal limits for the organized sector. The scheme also brought forward a contribution to the employer and the employee who have less than 100 employees, where 90% of them earn lesser than ₹15,000 per month, the government would pay their EPF for three months. |
| For Construction Workers | The yojana provided a fund of ₹31,000 crores to assist 3.5 crore registered workers to protect them against economic disruptions. |