BPL Full Form: Eligibility, Certificate, Benefits & Limit Explained

In this article, we will learn about the BPL full form, eligibility criteria, how to apply for a BPL certificate, income limits, and the benefits you can avail. Discover detailed insights and answers to frequently asked questions.

According to the World Bank, Poverty is said to deprive one of well-being and includes many dimensions. It combines low incomes and the failure to acquire the basic goods and services needed for survival with dignity. Thus, the conventional approach to measuring poverty is to define a minimum expenditure required to purchase a basket of goods and services necessary to satisfy basic human requirements and this minimum expenditure is called the poverty line.

Understanding the Basics of BPL

Hence, Below Poverty Line (BPL) is a benchmark used by the government of India to show economic loss and to recognize individuals and households in need of government help and support. It is planned using several parameters which differ from state to state and within states. The present guidelines are based on a survey conducted in 2002. Going into a survey due for a decade, India’s central government is undecided on measures to identify families below the poverty line.

According to 2019 reports, more than a quarter of the population living in rural regions of India is below the poverty line. Out of the total population living in the rural parts of India, 25.7 per cent is living below the poverty line whereas, in the urban areas, the state is a little better with 13.7 per cent of the population living below the poverty line.

BPL Data Table

State-Wise Percentage of Population Below Poverty Line by Social Groups, 2004-05

Data Source: Perspective Planning Commission, New Delhi.

Source:Perspective Planning Commission, New Delhi.The poverty line at the all-India level is calculated based on the expenditure class-wise distribution of persons using URP consumption data (30-day recall period). The poverty ratio at the all-India level is obtained as the weighted average of the state-wise poverty ratios.

Eligibility Criteria and Income Slab for BPL (2023)

• The government sets criteria to identify people below the poverty line (BPL).
• In 2011-12, 21.9% of India’s population (27 crore people) were below the poverty line.
• The poverty line defined by Monthly Per Capita Consumption Expenditure (MPCE): Rs. 816 for rural areas and Rs. 1000 for urban areas.

Updated Poverty Data and Reduction Efforts Made By the Govt. Of India

• NITI Aayog’s 2023 report shows significant poverty reduction, with the rate dropping from 24.85% in 2015-16 to 14.96% in 2019-21.
• 13.5 crore people escaped multidimensional poverty between 2015-16 and 2019-21.
• The government has launched various schemes to combat poverty, such as:
  • Mahatma Gandhi National Rural Employment Guarantee Scheme (MGNREGS)
  • Pradhan Mantri Awaas Yojana – Gramin (PMAY-G)
  • Pradhan Mantri Gram Sadak Yojana (PMGSY)
  • Deendayal Antyodaya Yojana – National Rural Livelihoods Mission (DAY-NRLM)
  • Pradhan Mantri Garib Kalyan Anna Yojna (PMGKAY)
  • Pradhan Mantri Ujjwala Yojana (PMUY)
  • Saansad Adarsh Gram Yojana (SAGY)
• These schemes provide direct benefits and improve infrastructure to uplift the poor.

How to Apply for a BPL Certificate

Apply In-Person

• BPL certificate will be issued in the name of the head of the family. This certificate consists of the names of other family members so that the other members may use the certificate for the advantages meant for BPL families.
• To apply, the eligible person has to apply with the required documents to the treated village Panchayat/ Block Panchayat / municipal authority.
• Please go to the respective office.
• Get the form for this certificate or write on plain paper as advised.
• Submit the completed application with the required documents to the acquiring authority.
• Authorities after checking the application and documents will make entries at the respective register and provide the applicant a record number for reference.
• Keep it safe for future reference.
• This application will be processed further.
• There will be a ground-level verification and analysis of the documents and details by the department authorities.
• After checking the documents and conducting a local inquiry into the facts and benefits of the case. Then the respective panchayat/Sarpanch or the respective authority issues the Certificate.

Required Documents

• Application form
• Identity proof
• Self-declaration from the applicant
• Ration Card
• Complete information about income sources
• Residential Proof: Residential Certificate issued by Aadhar card / Ration Card / PAN Card /  Passport / Driving License / Government Id card / Defense ID Card /Local administration office.
• Age proof (birth certificate/school certificate)
• Applicant passport size photograph.
• Aadhaar card
• Affix stamp as advised by authorities if required.

Note:

All originals and copies of originals with self-attestation as directed by respective authorities are to be submitted as per specification.

Apart from the above documents’ authorities may demand to submit additional information or documents. Please provide them for processing.

Benefits of Having a BPL Certificate

Some groups, especially those under Scheduled Tribes (ST) and Scheduled Castes (SC), suffer from exclusion in the poverty debates. While the National Sample Survey (NSS) data revealed a deterioration in overall poverty from 36% in 1993-94 to 28% in 2004-05, the numbers showed a different story for areas with tribal populations. 

The 2004-05 NSS also showed that the average consumption of Adivasis ST was 70% of the average, and that of Dalits (SC) less than 80% of the average. This census also showed that ST and SC make up a large proportion of India’s poor. The government’s programs for these groups tend to be executed not as strong and also tend to progress very slowly. 

ST and SC also suffer from displacement, differences in education and employment, and caste-based violence. States operate the power to make specific arrangements for these groups through reserved seats in educational institutions and special grants and scholarships. Also, certain income generation programs along with financial organizations that provide coaching in entrepreneurial skills do exist for these groups. 

A definite number of government jobs are set aside for these minority groups as well. A study found that in an area where members of SC/ST groups are specified roles of leadership, more funds are designated towards welfare programs. In other words, the political representation of the poor makes a huge impact on the allocation of resources.

Other programs available for the beneficiaries of BPL include Sarva Shiksha Abhiyan (SSA), the National Rural Health Mission, National Rural Employment Guarantee. Sarva Shiksha Abhiyan works to bring education to children from poor families and incorporates community work and organization. The NRHM concentrates on accessibility to health care in some of the poorest areas of India and promotes education and uplifting of Adivasi and Dalit women. The NREG implies a legal entitlement for every poor rural family to 100 days of work at the minimum wage and proposes to end food insecurity, empower village communities, and create assets.

The families who have a BPL card can receive 10 to 20 kg food grains per family per month at 50% of economic cost.  For specified quantities of wheat, rice, sugar, and other items the subsidized end retail price varies from state to state. Each state government fixes varying rates per quantity.

Various schemes for the benefit of BPL are as follows:

1. Pradhan Mantri Jan Dhan Yojana (PMJDY)

With a National Mission for financial incorporation, PMJDY is a government scheme for needy and poor people who belong to the below poverty line and was announced in 2014 on the eve of independence day. Through this scheme, they get access to financial services such as savings and deposit accounts, credit, insurance, pension, payment, etc at affordable rates. Under this scheme, almost 29.43 crore bank accounts have been opened so far.

Benefits:

• For those who opened bank accounts before January 26th, the government plans to offer accident insurance cover for over 1 lakh and insurance cover for over Rs. 30,000.
• 4 percent per annum will be provided on the money deposit.
• There will be no rules for minimum balance.
• Money can be transferred to any bank account in India as well as money from a government scheme can be directly transferred to an individual bank account.
• Upto Rs. 5000 overdraft facility is available after operating a bank account for 6 months.

2. Pradhan Mantri Jeevan Jyoti Bima Yojana

This scheme was announced in 2015 by the then-finance minister. It is a one-year renewable life insurance plan that offers a life coverage of Rs. 2 lakh with an annual premium of Rs. 330 which is payable at the time of renewal of the plan. The given premium will be deducted from the account holder’s savings account through the auto-debit facility. It can be availed by any savings bank account holder whose age is between 18 and 50 years. Further, once the account holder attains the age of 55 years his/her insurance will be terminated.

Benefits:

• The nominee can receive the death benefit.
• It is a one-year cover i.e.from June 1 to May 31.

3. Sukanya Samriddhi Yojana (SSY)

Under the ‘Beti Bachao, Beti Padhao’ campaign, the Prime Minister launched the Sukanya Samriddhi Yojana on 22nd January 2015. Its main aim is to meet the education and marriage expenses of a girl child. Under this a minimum of 1,000 and a maximum of 1.5 lakh can be deposited in a girl’s bank account during a financial year. Further, the account can be closed only when the girl turns 21 if the account is not closed then the holder can still earn interest on the amount.

Benefits

• A parent or a guardian can open or operate the account as soon as a girl child turns 10.
• An interest rate of 8.6% is offered with income tax benefits.
• To meet the educational requirements of a girl up to 50% of the balance can be withdrawn after she turns 18. Further, money can also be transferred from one authorized bank to another and vice versa.

4. Rashtriya Swasthya Bima Yojana (RSBY)

RSBY was introduced in the year 2008 to provide health insurance coverage to those people who belong to the below poverty line (BPL) category. As it provides insurance coverage on health to an unorganized sector that is registered under street vendors, licensed porters, welfare boards, etc.

Benefits:

• For a family consisting of 5 members, it covers up to Rs.30,000 on a floater basis.
• With a maximum limit of Rs. 1,000 it provides transportation charges cover of Rs. 100 per visit to the hospital.
• RSBY smart card is provided to BPL families which allows holders to claim medical care expenses of up to Rs. 30,00 p.a with a premium of just Rs.30.

5. Ayushman Bharat Pradhan Mantri Jan Arogya Yojana (ABPMJAY)

ABPMJAY is promoted as the world’s largest insurance scheme which was launched to cover ten crores of poor families including families with no adult members between 16 and 59, beggars, domestic help, construction workers, sanitation workers, public transport drivers, etc. in both urban and rural regions. It offers up to Rs 5 lakh insurance cover per family.

Benefits:

• Under this scheme, free treatment will be available in both private and public hospitals which are listed by the government in times of need.
• There will be no limit on the age and size of the families.
• It covers both pre and post-hospitalization expenses.

Conclusion

Education, gender-related problems, issues surrounding employment as well as religious factors can be considered as the main factors of poverty. Thus, the poverty line was fixed according to income/food requirements in 2000. But over the years several schemes have been launched by the government which not only helped its citizens but also focuses on the improvement of their financial situations.

FAQs regarding Below Poverty Line (BPL)

Q1. Who is considered above the poverty line?

Ans. A person who lives above its nationally assigned poverty outset is considered to be living above the poverty line. Thus, the people living in urban areas must meet their higher monthly income minimums to be regarded above the poverty line.

Q2. Who sets the poverty line in India?

Ans. Planning Commission Expert Group (1962), the working group commissioned by the Planning Commission formed separate poverty lines for rural and urban areas.

Q3. How is the poverty line calculated?

Ans. By applying an official poverty measure (OPM) the Census Bureau prepares poverty status that checks pre-tax cash income against a threshold that is set at three times the cost of a minimum food diet in 1963 and set for family size.

Q4. What does it mean to be above the poverty line?

Ans. The certain level of income that is required to reach a basic living standard with enough money for things such as food, clothing, and a place to live is said to be above the poverty line.

Q5. What is the current poverty line in India?

Ans. As per the last update in 2023, the poverty line defined by monthly per capita consumption expenditure (MPCE): Rs. 816 for rural areas and Rs. 1000 for urban areas.

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