- Full name: Prime Minister’s Citizen Assistance and Relief in Emergency Situations (PM CARES) Fund.
- Established: March 2020, during the COVID-19 pandemic.
- Purpose: To provide relief during public health emergencies, natural disasters and other emergency situations.
- Nature: It is a public charitable trust, not a statutory fund created by an Act of Parliament.
- Chairperson: The Prime Minister of India is the ex-officio Chairperson.
- Trustees: The Prime Minister can nominate three trustees having knowledge in fields such as public health, disaster management, research or social work.
- Ex-officio trustees: The Ministers of Defence, Home Affairs and Finance are trustees.
- Contributions: Donations can be made by individuals, organisations and companies.
- CSR: Contributions to PM CARES qualify as Corporate Social Responsibility (CSR) expenditure under the Companies Act.
- Tax benefit: Donations are eligible for 100% deduction under Section 80G of the Income Tax Act, subject to applicable conditions.
- Foreign contributions: PM CARES is registered under the Foreign Contribution (Regulation) Act (FCRA) and can receive foreign donations.
- Separate from PMNRF: PM CARES is distinct from the Prime Minister’s National Relief Fund (PMNRF).
- Audit: The Fund is audited by an independent auditor appointed by the trustees, rather than being a Consolidated Fund of India expenditure.
PM CARES vs PMNRF
| Feature | PM CARES | PMNRF |
| Established | 2020 | 1948 |
| Nature | Public charitable trust | Public charitable trust |
| Chairperson | Prime Minister | Prime Minister |
| Main purpose | Emergency situations | Relief to victims of natural disasters and major calamities |
| CSR contribution | Eligible | Generally not eligible as CSR |
| Foreign contribution | Can receive under FCRA | Can receive foreign contributions subject to applicable law |
Prelims MCQ — English
Q. With reference to the PM CARES Fund, consider the following statements:
- It was established in 2020 during the COVID-19 pandemic.
- The Prime Minister is its ex-officio Chairperson.
- It is a statutory fund established by an Act of Parliament.
- Contributions to the Fund can qualify as Corporate Social Responsibility expenditure.
Which of the statements given above are correct?
(a) 1 and 2 only
(b) 1, 2 and 4 only
(c) 2 and 3 only
(d) 1, 2, 3 and 4
Answer: (b) 1, 2 and 4 only
Explanation: PM CARES was established in 2020 as a public charitable trust, not through an Act of Parliament. The Prime Minister is its ex-officio Chairperson, and eligible contributions can qualify as CSR expenditure.
Ravi Raaz
Hassan Khan
Shadab Ali