PM CARES Fund (Government Schemes & Initiatives)

PM CARES Fund (Government Schemes & Initiatives)

PM CARES Fund (Government Schemes & Initiatives)

Why In News:

RTI activists pointed out that the PM CARES Fund has not published audited financial statements since FY 2022-23, reviving long-standing questions about its accountability structure.

Source: The Hindu, Page 1, 31 Jul 2026 – 'Activists raise transparency concerns as PM CARES Fund withholds audit statements since FY 2022-23'

What is PM CARES?

Full form: Prime Minister's Citizen Assistance and Relief in Emergency Situations Fund, set up in March 2020 amid the COVID-19 pandemic.

Governance: The Prime Minister is the ex-officio Chairman; the Home, Defence and Finance Ministers are ex-officio members.

Legal character: Registered as a Public Charitable Trust, not a statutory or government body.

Tax and FCRA treatment: Donations qualify for 100% tax exemption under the Income Tax Act, 1961, and the fund can accept foreign contributions outside standard FCRA restrictions.

Why Is It Controversial?

Not ‘State’ under Article 12: PM CARES has been held to fall outside the RTI Act's ambit since it is not classified as a ‘public authority’.

Private audit: It is audited by SARC & Associates, a private chartered accountancy firm, not the Comptroller and Auditor General (CAG).

Supreme Court stance (2020): The Court declined to direct the transfer of PM CARES funds to the National Disaster Response Fund (NDRF).

Related Funds

PMNRF: The Prime Minister’s National Relief Fund (PMNRF) was established in 1948 by Jawaharlal Nehru to assist refugees displaced during the Partition of India.

Current Purpose: Over time, its role has evolved to provide immediate financial assistance to:

Families of those killed in natural disasters such as floods, cyclones, and earthquakes

Victims of major accidents and riots

Funding: Similar to PM CARES, the fund is supported entirely through voluntary public contributions, without any budgetary support.

Transparency Status: Its coverage under the RTI Act remains disputed and is currently sub judice (under judicial consideration).

NDRF: The National Disaster Response Fund is a statutory body under the Disaster Management Act, 2005, subject to CAG audit and the RTI Act.

State-level funds: State Information Commissions have held funds like Kerala's CMDRF and the Punjab CM Relief Fund to be public authorities under the RTI Act.