Direct Benefits Transfers

PM-Kisan Samman Nidhi Yojana


From UPSC perspective, the following things are important :

Prelims level: PM-KISAN, Rythu Bandhu Scheme

Why in the News?

The Prime Minister will release the 17th installment of the Pradhan Mantri Kisan Samman Nidhi (PM-KISAN), amounting to over ₹20,000 crore, for 92.6 million beneficiary farmers across the country.

About the PM-KISAN Scheme

  • The PM-KISAN is a Central Sector Scheme with 100% funding from the Government of India.
  • It is being implemented by the Ministry of Agriculture and Farmer’s Welfare.
  • Launched: In February 2019.
  • Aim: To help procure various inputs to ensure proper crop health and appropriate yields, commensurate with the anticipated farm income at the end of each crop cycle.
  • Objective: To provide eligible farmers with an annual financial assistance of ₹6,000.
    • This assistance is distributed in three equal instalments of ₹2,000 each every 4 months, via Direct Benefit Transfer (DBT) into beneficiaries’ bank accounts.
  • Beneficiaries:
    • Farmer families that hold cultivable land can apply for the benefits of this plan.
    • Small and Marginal Farmers (SMFs) (a farmer who owns cultivable land up to 2 hectare as per land records of the concerned State/UT.).
    • The entire responsibility of identification of beneficiary farmer families rests with the State / UT Governments.

Do you know?

The PM-KISAN scheme was first conceived and implemented by the government of Telangana as the Rythu Bandhu scheme.

Rythu Bandhu Scheme

  • It is also known as the Farmer’s Investment Support Scheme (FISS).
  • It is a welfare programme for farmers started in 2018 by the Telangana government.
  • Under the scheme, the state government provided the 58 lakh farmers in Telangana with ₹5,000 per acre of their land as a farm investment for two crops.
  • There is no ceiling on the number of acres held by a farmer.
  • So, a farmer who owns two acres of land would receive Rs 20,000 a year, whereas a farmer who owns 10 acres would receive Rs 1 lakh a year from the government.
  • This investment is made twice a year, once for the kharif harvest and once for the Rabi harvest.
  • It is the country’s first direct farmer investment support scheme where cash is paid directly to the beneficiary.

Impact of the Scheme

  • Beneficiaries outreach: Over 11 crore farmers (with more than 3 crore women farmers) across the country have availed of the PM-Kisan scheme, indicating its widespread reach and impact.
  • Financial Support: This financial aid helps farmers meet their agricultural expenses, purchase seeds, fertilizers, and other inputs, and support their families’ livelihoods.
  • Improved Agricultural Practices: This contributes to food security and boosts the agricultural sector’s growth.
  • Poverty Alleviation: The scheme plays a crucial role in alleviating poverty among small and marginal farmers by providing them with a steady source of income just like Universal Basic Income (UBI).
  • Enhanced Livelihoods: PM-Kisan supports farmers’ livelihoods, by providing a safety net during times of agricultural distress or economic uncertainties, ensuring a better quality of life for rural communities.


[2020] Under the Kisan Credit Card scheme, short-term credit support is given to farmers for which of the following purposes?

  1. Working capital for maintenance of farm assets.
  2. Purchase of combine harvesters, tractors and mini trucks.
  3. Consumption requirements of farm households.
  4. Post-harvest expenses.
  5. Construction of family house and setting up of village cold storage facility.

Select the correct answer using the code given below:

(a) 1, 2 and 5 only

(b) 1, 3 and 4 only

(c) 2, 3, 4 and 5 only

(d) 1, 2, 4 and 5

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