Kerala's new law will provide lifelong income to Non-resident Keralites returning home

Around 22 lakh Non-Resident Keralites (NRKs) are expected to benefit from the scheme.

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The Kerala Assembly on Thursday passed the Non-Resident Keralites Welfare (Amendment) 2019 Bill aimed at providing a lifelong income for Non-resident Keralites (NRKs) returning to their home state. The amended Act now includes a Pravasi dividend scheme that would take deposits from NRKs and give a monthly dividend to the depositor.

Under the Pravasi dividend scheme, an NRK and their partner will have to make a one-time deposit in the range of Rs 3 lakh to Rs 51 lakh and the amount would be handed over to the Kerala Infrastructure Investment Fund Board (KIIFB) tasked with handling the scheme. The investors would then get a monthly dividend of 10% from the fourth year of deposit. The deposits have to be made through the Kerala Non-Resident Keralites Welfare Board.

After the death of the depositor, the nominee would get the invested sum and the dividend of three years, marking the end of the scheme.

The Kerala Chief Minister Pinarai Vijayan had said that the KIFB would provide 9% of the dividend while the state will bear 1%. The state in its 2019 budget had allocated Rs 2 crore to kick-start the scheme.

There are an estimated 22 lakh NRKs predominantly in the MENA (Middle East and North Africa) region, according to the Kerala Migration Survey 2018. The remittance from NRKs to the state that year had touched Rs 85,000 crore, states the survey.

At the time of presenting the bill before the assembly, the Kerala Chief Minister had said that the bill would benefit both the state government and the NRKs. The state aims to use the deposits for increasing infrastructure development.

Muslim League leader MK Muneer suggested that the state government should roll out the scheme as a pilot project for better implementation. CPI(M) legislator KV Abdul Khader opined that the state should consider operating Pravasi Lottery at least twice a year to generate funds for the scheme.