PIB Summary- 21th March, 2023 | Current Affairs & Hindu Analysis: Daily, Weekly & Monthly - UPSC PDF Download

National Pension System

Why in News?
As informed by Pension Fund Regulatory and Development Authority (PFRDA), the number of beneficiaries above the age of 60 years, under the National Pension System (NPS) is 5,67,116. 

About National Pension System

• National Pension System is a defined contributory pension introduced by Government of India.
• Any employee from public, private and even the unorganised sectors can opt for this. Personnel from the armed forces are exempted.
• The scheme is open to all across industries and locations.

The other eligibility criteria for opening an NPS account

• Must be an Indian citizen.
• Must be between the ages of 18 and 65.
• Must be KYC compliant.
• Must not have a pre-existing NPS account.

NPS Benefits

• NPS offers returns higher than traditional instruments like the PPF (Public Provident Fund).
• It offers many investment options to subscribers who also have a say in where their funds are invested.
• The NPS reduces the retirement liabilities of the government.
• If the subscriber has been investing for at least three years, he/she can withdraw up to 25% for certain purposes before retirement (age 60). This withdrawal can be done up to 3 times with a gap of at least 5 years between each withdrawal. These restrictions are only for tier I and not tier II accounts.
• The entire amount cannot be withdrawn by the account-holder on retirement [Changes to be introduced]. As of April 2021, 60% can be withdrawn which has now been made tax-free. The rest 40% has to be kept aside so that the subscriber can receive a regular pension from an insurance firm.

About PFRDA

• Pension Fund Regulatory and Development Authority (PFRDA) is the Statutory Body established by the PFRDA Act, 2014.
• PFRDA was established to regulate, promote and ensure orderly growth of the National Pension System (NPS) and pension schemes to which this Act applies.

Pradhan Mantri Khanij Kshetra Kalyan Yojana

Why in News?
There is no provision for budgetary allocation from Central Government or State Governments to the Pradhan Mantri Khanij Kshetra Kalyan Yojana (PMKKKY). The various projects taken up under Pradhan Mantri Khanij Kshetra KalyanYojna (PMKKKY) are funded through the funds accrued under DMFT.

About Pradhan Mantri Khanij Kshetra Kalyan Yojana (PMKKKY)

• The programme is meant to provide for the welfare of areas and people affected by mining related operations, using the funds generated by District Mineral Foundations (DMFs).

Objectives of the scheme

• To undertake various welfare and development projects/programs in mining-affected areas that complement currently-running State and Central Government projects and plans.
• Reduce or offset the negative effects of mining on the environment, human health, and socioeconomic conditions of those who live in mining districts.
• To ensure the impacted population in mining locations has long-term, sustainable means of subsistence.

About District Mineral Foundation

• DMFs are statutory authorities that a State Government sets up in districts affected by mining.
• The Mines and Minerals (Development and Regulation) Amendment Act of 2015 established DMFs.
• They are non-profit trusts to work for the interest and benefit of persons and areas affected by mining-related operations.

Objectives

• As required by the law, a DMF’s main objective is to promote the welfare of those communities and persons who have been adversely affected by mining.
• The State Government is of the opinion that poor locals, including tribal members, have a right to profit from the exploitation of natural resources nearby.