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What happened
The Union Cabinet has approved continuation of the PM-KISAN scheme beyond 2026, ensuring farmers keep receiving ₹6,000 per year in direct income support. Launched in February 2019, PM-KISAN transfers ₹2,000 in three equal instalments directly to eligible landholding farmers' bank accounts via Direct Benefit Transfer. The scheme is implemented by the Ministry of Agriculture and Farmers Welfare and covers small and marginal as well as larger landholding farmer families across India.
02 Understand
Why it matters
PM-KISAN (Pradhan Mantri Kisan Samman Nidhi) is India's largest direct income-support programme for farmers, launched on 24 February 2019 with retrospective effect from 1 December 2018. It uses Direct Benefit Transfer (DBT) to credit ₹6,000 annually in three instalments of ₹2,000 each directly into Aadhaar-linked bank accounts, bypassing intermediaries and minimising leakage — a core financial inclusion mechanism that RBI and NABARD examiners value.
The scheme initially targeted small and marginal farmers (holding up to 2 hectares), but was expanded in June 2019 to cover all farmer families irrespective of land size. Exclusion criteria matter for exams: institutional landholders, those who paid income tax in the last assessment year, constitutional post-holders, serving/retired government employees (above a salary threshold), and professionals like doctors, engineers, and lawyers are excluded.
From a NABARD perspective, PM-KISAN addresses the chronic problem of rural consumption smoothing — farmers receiving predictable cash before kharif and rabi seasons can reduce dependence on informal credit at exploitative rates. The scheme complements Priority Sector Lending norms and SHG-linkage programmes by improving the credit-worthiness and demand side of rural households.
The Cabinet's decision to continue the scheme post-2026 signals long-term fiscal commitment. For UPSC, the governance angle is critical: PM-KISAN is a centrally-sponsored scheme with 100% central funding, administered through a PM-KISAN portal with farmer registration, land verification through state governments, and Aadhaar authentication — a model of technology-driven welfare delivery.
The scheme initially targeted small and marginal farmers (holding up to 2 hectares), but was expanded in June 2019 to cover all farmer families irrespective of land size. Exclusion criteria matter for exams: institutional landholders, those who paid income tax in the last assessment year, constitutional post-holders, serving/retired government employees (above a salary threshold), and professionals like doctors, engineers, and lawyers are excluded.
From a NABARD perspective, PM-KISAN addresses the chronic problem of rural consumption smoothing — farmers receiving predictable cash before kharif and rabi seasons can reduce dependence on informal credit at exploitative rates. The scheme complements Priority Sector Lending norms and SHG-linkage programmes by improving the credit-worthiness and demand side of rural households.
The Cabinet's decision to continue the scheme post-2026 signals long-term fiscal commitment. For UPSC, the governance angle is critical: PM-KISAN is a centrally-sponsored scheme with 100% central funding, administered through a PM-KISAN portal with farmer registration, land verification through state governments, and Aadhaar authentication — a model of technology-driven welfare delivery.
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