‘Prime Minister’s Citizen Assistance and Relief in Emergency Situations Fund’ (PM CARES Fund) has been set up as a national fund to deal with the COVID-19 pandemic.
Key takeaways:
The primary objective is to deal with any kind of emergency or distress situation, like posed by the COVID-19 pandemic.
The fund will also help in providing relief to the affected.
This fund will enable micro-donations as a result of which a large number of people will be able to contribute with the smallest of denominations.
Contribution by corporates to PM-CARES Fund will be considered as CSR expenditureunder the companies law, as per Corporate Affairs Ministry’s memorandum.
Important value additions:
PM CARES Fund
The Prime Minister is the Chairman of the fund.
Other Members include Defence Minister, Home Minister and Finance Minister.
Corporate Social Responsibility (CSR)
Under section 135 of the Companies Act, 2013, every company having net worth of at least Rs 500 crore, turnover of Rs 1,000 crore or more, or a minimum net profit of Rs 5 crore during the immediate preceding financial year has to make CSR expenditure.
The CSR initiatives of companies thrust on creating value in the lives of the communities around its areas of business and manufacturing operations.
PM National Relief Funds (PMNRF)
These are the other funds under the Prime Minister.
He is the chairman of the fund.
The PMNRF is used to support people affected by natural and man-made disasters.
This includes acid attacks, accidents and riots.
It is also allotted to people for kidney transplantation treatments, heat, surgeries, etc.
