Indian Military Veterans

EX-SERVICEMEN WELFARE - THE PENURY GRANT SCHEME EXPLAINED

The Penury Grant is a compassionate welfare scheme aimed at supporting Ex-Servicemen (ESM) and their widows who experience financial difficulties after leaving the Armed Forces. While India takes great pride in its brave soldiers for their service and sacrifice, it also acknowledges that many veterans, particularly non-pensioners, often struggle to make ends meet post-retirement. Factors such as unemployment, illness, or family responsibilities can complicate their lives.

To tackle these challenges, the Kendriya Sainik Board (KSB) provides financial assistance through the Armed Forces Flag Day Fund (AFFD Fund) via the Penury Grant Scheme. This initiative offers a monthly grant for the lifetime of destitute ESM and their widows, ensuring they receive dignity, stability, and recognition for their invaluable contributions to the nation.

HISTORY AND EVOLUTION OF THE SCHEME  

The Penury Grant scheme was launched in 1981, initially providing financial assistance of Rs 100 per month for two years to non-pensioner ESM or their widows who had reached the age of 65. This amount was increased to Rs 500 per month for two years in 2007, along with a one-time grant of Rs 30,000 when they turned 70 or 75 years old.

In 2011, the Penury Grant Scheme was simplified and revised to provide a monthly grant of ₹1,000 per beneficiary for life, regardless of the age of the Ex-Serviceman (ESM) or widow. Later, in 2017, this amount was increased to ₹4,000 per month (paid annually) per beneficiary.

Now, in a significant welfare enhancement, the Government has doubled the Penury Grant to ₹8,000 per month effective from 01 November 2025, reaffirming its commitment to support the most deserving non-pensioner ESM and their widows.

**Eligibility and Application Process**  

The eligibility criteria for receiving financial assistance under the Penury Grant scheme are as follows:

- The applicant must be a non-pensioner ESM or his widow.

- The applicant should hold the rank of Havildar or an equivalent rank from the Navy or Air Force and below.

- The grant is available to ESM and widows who have reached the age of 65 by 01 April of the financial year in which they are applying.

- After the death of an ESM who was already receiving the Penury Grant, his widow is eligible for the grant, regardless of her age at the time of the ESM's death.

To apply for the Penury Grant, the applicant must log in to the KSB web portal and complete the online application form. The following documents must be scanned and uploaded along with the application:

- Service document/discharge book of the ESM (all pages in sequential order without any alterations).

- Age proof, if the date of birth is not included in the service document/discharge book.

- Identity card of the ESM or widow issued by the Zila Sainik Board (ZSB).

- The first page of the bank passbook and a cancelled cheque, showing the bank account number, IFSC code, and personal details of the account holder.

- Certificate of penury, attested by a gazetted officer or a Sarpanch.

The application must be verified and recommended by the Zila Sainik Welfare Officer (ZSWO) before being forwarded to the KSB for approval. The ZSWO is responsible for checking and confirming the authenticity of the uploaded documents and the information provided by the applicant.

**Renewal and Continuation of the Scheme**  

For subsequent grants, after the initial penury grant has been awarded, the beneficiary must log in to the website, apply for Penury Renewal, and submit a life certificate online, duly countersigned by the respective ZSWO, between 01 December and 31 March of the current financial year. The life certificate should be signed only by the ZSWO. It is important to note that the financial assistance is non-transferable and will automatically cease upon the death of the ESM or widow.

After the ESM's death, his widow will need to apply afresh for financial assistance under the penury grant. Before applying for the Initial Penury Grant, the widow must update the "Who are you" section to "Widow" and provide the "Date of Death" of the ESM in her Profile Page.

If the widow's husband was already receiving the Penury Grant, there is no need for fresh registration. The widow can apply for the Initial Penury Grant using her husband's KSB account by changing "Who are you" to "Widow," entering the "Date of Death" of the ESM in the Profile Page, and updating other details. The age limit of 65 years does not apply in such cases. For subsequent grants, the procedure outlined in the preceding paragraphs may be followed for Penury Renewal.

ACTION AGAINST MEDICAL FACILITIES EMPANELLED WITH ECHS and other Important ECHS directives

ARMED FORCES PENSION SCHEMES : A DETAILED OVERVIEW