Prime Minister’s National Relief Fund (PMNRF)

Why in news?

• The Prime Minister has announced an ex-gratia of Rs. 2 lakh each from Prime Minister's National Relief Fund (PMNRF) for the next of kin of those who lost their lives due to the bus tragedy in Dhar, Madhya Pradesh. The injured would be given Rs. 50,000.

About Prime Minister’s National Relief Fund (PMNRF):

• Prime Minister’s National Relief Fund (PMNRF) in India is the fund raised to provide support for people affected by natural and manmade disasters, first created by Jawaharlal Nehru to support the displaced people from Pakistan during partition.
• Chairman of PMNRF is the Prime Minister of India. Other members are from Tata Trusts, representatives of FICCI etc.
• The minimum amount one can donate in the PM National Relief Fund is Rs 100.
• PMNRF has been attached with all Centre and State-run hospitals and many private hospitals as well.
• PMNRF focuses on all kinds of natural disasters and calamities like Cyclones, Earthquakes, Floods, Tsunamis etc. The PMNRF funds are also utilised for acid attack victims, cancer treatments, kidney transplants etc.
• As per reports, there is low liquidity of only 15% in the PMNRF, which makes it difficult to utilise it in case of emergency. As per reports, bulk of the corpus is invested in State Development Loans, Fixed Deposits etc.
• PMNRF accepts only voluntary donations by institutions and individuals. Contributions flowing out of the balance sheets of the Public Sector Undertakings (PSU’s) or from the budgetary sources of Government are not accepted.
• Spending from PMNRF does not require approval from Parliament.
• Donations to PMNRF will be exempted from Income Tax under Section 80G.
• PMNRF do not receive budgetary support.
• PMNRF is set up as trusts.

PRACTICE QUESTION:

Consider the following statements regarding ‘Prime Minister’s National Relief Fund (PMNRF)’:

1. The fund do not receive budgetary support

2. It is chaired by President of India

Which of the statements given above is/are correct?

(a) 1 only

(b) 2 only

(c) Both 1 and 2

(d) Neither 1 nor 2

                         A

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