For a family that has just lost someone in a building collapse or an industrial accident, the name of the fund behind the compensation is rarely the first question on their mind. The immediate concerns are survival, funeral expenses, hospital bills, and the uncertainty of what comes next.

But the announcements that follow such tragedies point to a larger question about how India's emergency relief actually works. India has two national funds led by the Prime Minister. One was created in 1948, in the aftermath of Partition. The other launched in March 2020, as the country confronted COVID-19. Both accept voluntary contributions, both offer tax benefits, and both are charitable trusts rather than funds set up by an Act of Parliament.

More than six years after PM CARES was created, the older Prime Minister's National Relief Fund — PMNRF — is still very much in use. And this month, PM CARES is back in the news over the size of its reserves. So it's worth slowing down and answering the questions people are actually asking: what are these two funds, why are there two, and what does each one mean for an ordinary citizen?

Why is the PM CARES Fund in the news?

In August 2026, PM CARES published its audited accounts for 2024-25, and the figures drew wide attention.

As reported in the audited receipts and payments account, the fund closed the year with Rs 8,452.07 crore, up from Rs 7,173.03 crore a year earlier. Over the same year, it spent Rs 87.85 lakh — down from Rs 15.60 crore the previous year. Per the statement, nearly 93% of the corpus — Rs 7,846.65 crore — was held in fixed deposits, with another Rs 605.41 crore in savings accounts, and the fund earned around Rs 475 crore in interest during the year, close to the roughly Rs 480 crore it received in fresh donations.

Two details drew particular notice: the size of the balance against the amount spent, and the timing. As reported, the accounts for the year ended 31 March 2025 were signed by PM CARES officials on 6 August 2026 — more than a year after the financial year closed.

The takeaway: The attention is driven by a large balance, low spending in the year, and a delayed disclosure — all drawn from the fund's own audited statement.

President Ram Nath Kovind pledges to donate one-month salary to PM-CARES Fund to help the nation tide over the crisis of COVID-19. He appeals to all fellow citizens to donate generously to PM-CARES Fund to help defeat COVID-19. — President of India (@rashtrapatibhvn) March 29, 2020

President Ram Nath Kovind pledges to donate one-month salary to PM-CARES Fund to help the nation tide over the crisis of COVID-19. He appeals to all fellow citizens to donate generously to PM-CARES Fund to help defeat COVID-19.

What are the two funds, and how do they differ?

India has two national relief funds, both chaired by the Prime Minister.

The Prime Minister's National Relief Fund (PMNRF) is the older one. Per the Prime Minister's Office, it was established in January 1948, following an appeal by then Prime Minister Jawaharlal Nehru, with public contributions to assist people displaced from Pakistan after Partition. Its mandate has since widened. The PMO states its resources are now used primarily to give immediate relief to families of those killed in natural calamities like floods, cyclones and earthquakes, and to victims of major accidents and riots, and that it also partially defrays the cost of........

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