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A Guide to PM CARES FUND

a-guide-to-pm-cares-fund

In pursuance of an appeal by the Prime Minister Narendra Modi on 28 March 2020, the Prime Minister’s Citizen Assistance and Relief in Emergency Situations Fund (PM CARES) was established with public contributions to assist any kind of emergency or distress situation, like posed by the COVID-19 pandemic, and to provide relief to the affected persons.

    An Introduction


    COVID-19, a highly contagious disease has spread to almost the entire world. In India too the pandemic is posing a severe health hazard, which requires the entire nation to stand together. Keeping in mind the need for having a dedicated national fund with the primary objective of dealing with any kind of emergency or distress situation, like posed by the COVID-19 pandemic, and to provide relief to the affected, a public charitable trust under the name of ‘Prime Minister’s Citizen Assistance and Relief in Emergency Situations Fund’ (PM CARES Fund)’ has been set up.

    The Prime Minister's Citizen Assistance and Relief in Emergency Situations Fund (PM CARES Fund) was created on 28th March 2020 following the COVID-19 pandemic in India. This dedicated national fund has been set up with the primary objective of dealing with any kind of emergency or distress situation as posed by the COVID-19 pandemic, and to provide relief to the affected people.

    PM CARES Fund accepts voluntary contributions by individuals/organizations as well as contributions as part of CSR from Companies/Public Sector Undertakings (PSUs). However, contributions flowing out of budgetary sources of the PSUs are not accepted.

    What is the PM CARES Fund


    Prime Minister’s Citizen Assistance and Relief in Emergency Situations Fund (PM CARES Fund), is a dedicated national fund with the primary objective of dealing with any kind of emergency or distress situation, like posed by the Coronavirus pandemic and to provide relief to the affected.

    “People from all walks of life expressed their desire to donate to India’s war against COVID-19. Respecting that spirit, the Prime Minister’s Citizen Assistance and Relief in Emergency Situations Fund has been constituted. This will go a long way in creating a healthier India,” said Prime Minister Narendra Modi.

    “The PM CARES Fund accepts micro-donations too. It will strengthen disaster management capacities and encourage research on protecting citizens. Let us leave no stone unturned to make India healthier and more prosperous for our future generations,” he added.

    Objectives of the PM CARES FUND


    The objectives of the PM CARES FUND are outlined below-

    To undertake and support relief or assistance of any kind relating to a public health emergency or any other kind of emergency, calamity or distress, either man-made or natural, including the creation or upgradation of healthcare or pharmaceutical facilities, other necessary infrastructure, funding relevant research or any other type of support.

    To render financial assistance, provide grants of payments of money or take such other steps as may be deemed necessary by the Board of Trustees to the affected population.

    To undertake any other activity, which is not inconsistent with the above Objects.

    Constitution of the Trust


    PM CARES is a registered trust, with the prime minister as the chairperson.

    The PM CARES FUND was recently set up as a public charitable trust to receive donations to deal with any kind of emergency or distress situation, like the one posed by the COVID-19 pandemic, and to provide relief to the affected.

    Prime Minister is the ex-officio Chairman of the PM CARES Fund and Minister of Defence, Minister of Home Affairs and Minister of Finance, Government of India are ex-officio Trustees of the Fund.

    The Chairperson of the Board of Trustees (Prime Minister) shall have the power to nominate three trustees to the Board of Trustees who shall be eminent persons in the field of research, health, science, social work, law, public administration and philanthropy.

    Any person appointed a Trustee shall act in a pro bono capacity.

    The Trustees of the PM CARES Fund have powers to formulate rules/criteria for carrying out any of the Objectives of the Trust.

    The PM CARES Fund will be audited by one or more qualified independent auditor(s) who will be appointed by the Trustees. The fund is not subject to audit by CAG.

    Tax Benefits to PM CARES FUND


    Donations to PM CARES Fund would qualify for 80G benefits for 100% exemption under the Income Tax Act, 1961. The Permanent Account Number (PAN) of PM CARES Fund is AAETP3993P.

    Recently, section 80G has been amended by Taxation and other Laws (Relaxation of Certain Provisions) Ordinance, 2020 to provide for 100% deduction in case of donations made to the PM CARES Fund.

    A special fund “Prime Minister’s Citizen Assistance and Relief in Emergency Situations Fund (PM CARES FUND)” has been set up for providing relief to the persons affected from the outbreak of Coronavirus. The Ordinance also amended the provisions of the Income-tax Act to provide the same tax treatment to PM CARES Fund as available to Prime Minister National Relief Fund. Therefore, the donation made to the PM CARES Fund shall be eligible for 100% deduction under section 80G of the IT Act. Further, the limit on the deduction of 10% of gross income shall also not be applicable for donation made to PM CARES Fund.

    CSR Expenditure Benefits to PM CARES FUND


    Donations to PM CARES Fund will also qualify to be counted as Corporate Social Responsibility (CSR) expenditure under the Companies Act, 2013.

    The MCA has issued a General Circular No. 10/2020 dated 23.03.2020 to clarify that in view of the spread of novel CoronaVirus (COVID-19) in India, its declaration as a pandemic by the World Health Organisation (WHO), and, the decision of Government of India to treat this as a notified disaster, it is hereby clarified that spending of CSR funds for COVID-19 is eligible CSR activity. 

    MCA issued an Office Memorandum dated 28.03.2020 to state that the Government of India had set up the Prime Minister’s Citizen Assistance and Relief in Emergency Situations Fund’ (PM CARES Fund) with the primary objective of dealing with any kind of emergency or distress situation such as that posed by COVID 19 pandemic.

    It further stated that the PM-CARES Fund had been set up to provide relief to those affected by any kind of emergency or distress situation. Accordingly, it is clarified that any contribution made to the PM CARES Fund shall qualify as CSR expenditure under the Companies Act 2013.

    Account Details of PM CARES FUND


    One has to visit the PMO website pmindia.gov.in or the PM CARES FUND website pmcares.gov.in to donate to PM CARES Fund using the following details:

    Account Details
    Name of the Account
    PM CARES
    Account Number
    2121PM20202
    IFSC Code
    SBIN0000691
    SWIFT Code
    SBININBB104
    Name of Bank & Branch
    State Bank of India, New Delhi Main Branch
    UPI ID
    pmcares@sbi


    Online Modes of payments
    Debit Cards and Credit Cards
    Internet Banking
    UPI (BHIM, PhonePe, Amazon Pay, Google Pay, PayTM, Mobikwik, etc.)
    RTGS/NEFT

    One should beware of fake accounts created by some unscrupulous to dupe people. In one case, it was reported that fake UPI ID was created which at the first instance look similar to the original above-mentioned UPI ID.

    In this context, the government warned people from using the fake UPI IDs for making a donation to the PM CARES FUND.

    In a tweet, PIB Fact Check noted that fictitious UPI IDs are being circulated on the pretext of PM CARES Fund.

    "Beware of Fake UPI ID being circulating on the pretext of PM CARES Fund. 

    #PIBFactcheck: The correct UPI ID of #PMCaresFunds is pmcares@sbi," PIB Fact Check tweeted.




    Domestic and Foreign Contributions


    A citizen of India residing in India as well as abroad can donate to this fund. Thus a Non-Resident Indian is also eligible to contribute to this fund. Contributions to the FUND can be done by individuals and organisations, both in India and abroad.

    However, any financial assistance from the governments of the other nations to the “PM-Cares Fund” to deal with the COVID-19 crisis will not be accepted, but it will remain open to receiving donations from the overseas citizens of the country, foreign individuals and non-government entities. PM CARES FUND would accept donations from foreign individuals and non-government entities as well as international organizations to the PM Cares Fund, it would not accept any assistance by the government of any foreign country.

    The decision to accept donations from individuals and non-government organizations in India and abroad had been taken in view of the “unprecedented nature” of the crisis that the pandemic had put the country into.

    In the case of foreign donations, it must be remembered that PM CARES Fund provides assistance and relief in India. Hence, contributions wherein the donor intends donations for the foreign citizens/calamities abroad are not accepted in the Fund.

    PM CARES FUND is registered under Foreign Contribution (Regulation) Act, 2010 (FCRA) and is eligible to receive Foreign Contribution.

    PM CARES Fund has also got exemption under the FCRA and a separate account for receiving foreign donations has been opened. This enables PM CARES Fund to accept donations and contributions from individuals and organizations based in foreign countries. This is consistent with respect to the Prime Minister’s National Relief Fund (PMNRF). PMNRF has also received foreign contributions as a public trust since 2011.

    Modes through which domestic donation can be made to PM CARES Fund


    Net Banking (SBI and other commercial Banks)

    Card Payments – SBI ATM-cum-Debit Card, Other Bank Debit Cards, Credit Card, Prepaid Card, Foreign Card

    Other Payment modes: SBI Branch, NEFT/RTGS. 

    Contributions can also be made online through the portal of PMO i.e. pmindia.gov.in as well as through the portals of the collection banks.

    Further, cheque or demand draft drawn in favour of ‘PM CARES Fund’ can be sent to Under Secretary (Funds), PMO, South Block, New Delhi, Pin -110011 along with Name, Address, Mobile No. and E-mail ID of the donor.

    QR Code-Payment by scanning the QR code is very simple and fast. You need a UPI App like BHIM to use the feature.


    a-guide-to-pm-cares-fund


    PM CARES FUND vs PMNRF


    PMNRF was only for Natural Disasters, whereas PM CARES has been created to deal with pandemic situations like COVID-19. This is a focused fund for dealing with an unprecedented situation due to COVID-19 and the same cannot be dealt with in the same manner as other natural disasters that are served by PMNRF.

    It will be audited by an Independent Auditor outside the Government in the same manner as the PMNRF is being audited.

    List of Donors/Contributors to PM CARES FUND


    Political leaders, corporates, defence personnel, employees of PSUs and Bollywood personalities are among organisations and people who have announced their contribution to the PM-Cares Fund.

    Employees of the government and private sectors are also donating one day salary to the fund.

    While some of the bigger donations to PM CARES have come from corporate India, government organisations, and employees of PSUs and other government sectors, there have also been innumerable smaller contributions by individuals too.

    Some of the notable contributions to PM CARES fund from PSUs, as on the date of writing of this article, is given below-


    Sr.
    Name of the donor/contributor
    Amount
    Rs. in Crore)
    1
    The Institute of Chartered Accountants of India
    21.00
    2
    Institute of Company Secretaries of India
    5.25
    3
    Institute of Cost Accountants of India
    2.55
    4
    Indian Potash Limited(IPL)
    5.0
    5
    IFFCO , KRIBHCO and NFL-KISAN
    27.00
    6
    Power Finance Corporation
    200
    7
    Kolkata Port Trust
    1.0
    8
    Mumbai Port Trust
    1.0
    9
    Jawaharlal Nehru Port Trust
    16.40
    10
    Deendayal Port Trust
    8.0
    11
    Paradip Port Trust
    8.0
    12
    Cochin Port Trust, Chennai Port Trust, Vishakhapatnam Port Trust, V.O. Chidambarnar Port Trust, Kamarjar Port Limited, New Mangalore Port Trust, Mormagao Port Trust
    12.29
    13
    Security Printing & Minting Corporation of India Ltd. (SPMCIL) & its employees
    5.19
    14
    Punjab National Bank & its employees
    15.0
    15
    Bank of India & its employees
    10.0
    16
    IFCI & Subsidiaries cc
    0.60
    17
    IIFCL
    25.0
    18
    National Housing Bank cc
    2.54
    19
    EXIM Bank cc
    1.0
    20
    SIDBI cc
    15.00
    21
    Life Insurance Corporation of India (LICI)
    105
    22
    General Insurance Co.
    22.81
    23
    Oriental Insurance Co. Ltd.
    10.00
    24
    New India
    5.0
    25
    United Insurance
    2.0
    26
    National Insurance
    https://pib.nic.in/PressReleseDetail.aspx?PRID=1611363
    2.0
    27
    Civil Serivces Officers Institute (CSOI)
    0.25
    Source: PIB India

    In a press releases dated 28.04.2020, RBI has reported that its Employees' had contributed Rs. 7.30 crore to the PM CARES Fund.

    The Circular stated that the COVID-19 pandemic and the related dislocation in normal economic activity had severely affected the economically weaker sections of the society and their means of livelihood.

    To help the people affected by any kind of emergency or distress situation, like the one posed by the COVID-19 pandemic, Government of India had set up a public charitable trust named Prime Minister’s Citizen Assistance and Relief in Emergency Situations Fund (PM CARES Fund) to receive contributions from various sources.

    Responding to the call to support this noble cause, the employees of the Reserve Bank have decided to contribute one or more days salary to the PM CARES Fund. The total contribution from the employees amounting to Rs. 7.30 crore is being remitted to the PM CARES Fund, RBI added.

    Employees of EPFO contribute Rs 2.5 crore to PM CARES fund: The employees of Employees Provident Fund Organization (EPFO) have also come forward to support the Government’s initiative in combating the national crisis of COVID-19 pandemic and voluntarily contributed one day’s salary- amounting to around Rs. 2.5 crore to the PM CARES Fund. EPFO, as one of World's largest Social Security Organizations, stands committed in the service of the nation in every possible way.
    Source: Press Release of Ministry of Labour & Employment

    Receipts and Payments of PM CARES FUND


    The fund was established recently on 28th March 2020. Hence, the PM CARES does not have a publicly available income and expenditure profile yet.

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