The PM Kisan Samman Nidhi Yojana is a flagship initiative by the Central Government of India, introduced to ensure financial support for farmers. The scheme was launched by the Prime Minister of India, Narendra Modi, on 1st December 2018.
This policy aims at aiding small and marginal farmers with a fixed income in a year. Since its initiation, the scheme has brought about a significant change in the lives of numerous small-scale farmers.
Funding of the PM Kisan Samman Nidhi Yojana
PM Kisan Samman Nidhi Yojana offers a direct income support of INR 6,000 per year in three equal installments of INR 2,000 every four months. The funding for this scheme comes directly from the Union budget of India, which provides the necessary funds for the implementation of the scheme across the nation.
The scheme covers all farmers irrespective of the size of their land holdings, and the money is deposited directly into the farmers’ bank accounts. This implementation assures transparency and aims to reduce leakages and delays in the system.
PM Kisan Samman Nidhi Yojana Vs. Sukanya Samriddhi Yojana
While the PM Kisan Samman Nidhi Yojana focuses on the welfare of farmers, the Sukanya Samriddhi Yojana aims at securing the future of girl children in India. This government-backed savings scheme offers irresistible benefits and appreciable sukanya samriddhi yojana interest rate.
Under the Sukanya Samriddhi Yojana, the account can be opened anytime after the birth of a girl till she turns 10, with a minimum deposit of INR 250 (effective from 5 July 2018). The maximum deposit limit is INR 1,50,000 per year. The maturity period of this scheme is 21 years from the date of opening the account. The interest is computed yearly and is currently at a rate of 7.6%.
Choosing Between PM Kisan Samman Nidhi and Sukanya Samriddhi Yojana
Both schemes serve different purposes, and the suitability differs as per an individual’s needs. If a family’s primary source of income is farming, applying for the farmer’s welfare scheme (PM Kisan Samman Nidhi Yojana) would be an oblique choice for securing regular income.
On the other hand, if securing a girl child’s future is a priority, then opting for Sukanya Samriddhi Yojana would provide a considerable corpus over time with its attractive Sukanya Samriddhi Yojana interest rate
It is essential to note that these government schemes are part of a broader financial portfolio and must not be solely relied upon. Adherence to comprehending the financial market’s uncertainties and multiple investment pools’ pros and cons are an investor’s primary responsibilities.
To Conclude
The PM Kisan Samman Nidhi Yojana and Sukanya Samriddhi Yojana are spectacular examples of the Indian government’s initiatives towards addressing critical societal issues such as farmer’s well-being and promoting a secure future for girls and children. Understanding the funding for each scheme, their pros and cons, and their suitability according to your needs can aid in making informed financial decisions.
Disclaimer: The information furnished in this article has been compiled from multiple sources. Readers and investors are advised to do due diligence before making investment decisions.
Summary:
The PM Kisan Samman Nidhi Yojana is a monumental farmer’s welfare scheme that offers income support to small and marginal farmers in India. It provides INR 6,000 per annum in three equal installments directly funded from the union budget. In contrast, Sukanya Samriddhi Yojana is an effective scheme for securing a girl child’s future, offering an attractive interest rate. Both schemes serve different purposes, and their suitability varies as per individual needs. Understanding the functioning, benefits, funding, and inherent uncertainties of these schemes can enable individuals to make informed financial decisions. An investor’s primary responsibility lies in understanding the pros and cons related to diverse investment avenues in the Indian financial market.
