Prime Minister Narendra Modi, on Thursday (January 2), announced that the government will electronically transfer INR 12K Cr directly to six crore families of farmers across the country under the PM Kisan Samman Nidhi (PM-KISAN) programme. The transfer will be done through a web-based payment and management information systems (MIS) IT application of the government of India.
According to a media report, PM Modi at the Krishi Karman Award ceremony held in Tumakuru, Karnataka on January 2, 2020 said that the scheme will be benefiting small and marginal farmers across states and union territories.
How Govt Is Leveraging Digital Modes To Process Schemes
The MIS IT application of the government of India is used across various schemes and government sectors. It helps the authority to keep track of the programmes in the most efficient way possible. The application helps to collect, process, verify, store, quickly transfer funds and gather data. Apart from PM-KISAN scheme, it is currently being used by Credit Guarantee Fund Trust for Micro and Small Enterprises (CGTMSE) to transfer business loans for startups in less than 59 minutes. PM Modi described this initiative in 2018 while revealing the 12-point action plan for the MSME sector.
PM Modi had earlier said that this loan portal will allow easy and quick loan up to INR 1 Lakh to small businesses, which otherwise used to take 7-8 working days to process the loans to MEMEs.
How PM-KISAN Will Help Indian Farmers
The PM’s flagship initiative Kisan Samman Nidhi Yojana also known as PM-KISAN was launched in February 2019 at Gorakhpur in Uttar Pradesh. The scheme offers financial assistance to small medium-size firms (SMFs) or farmers in procuring various inputs to ensure proper crop health and appropriate yields at the end of each crop cycle. It is also aimed at eliminating the role of moneylenders and other factors that disrupt the continuity of farming activities in the country.
For 2019-2020, a budget provision of INR 75K Cr was kept for disbursal of financial benefit to the eligible farmers or SMFs. Under this initiative, direct payment of INR 6K per year will be transferred in three installments of INR 2K, once every four months into the Aadhar enabled bank accounts of eligible farmers.