Thursday, March 17, 2016

Pradhan Mantri Fasal Bima Yojana



Government of India has recently approved Pradhan Mantri Fasal Bima Yojana (PMFBY) which would replace the National Agricultural Insurance Scheme (NAIS) & Modified National Agricultural Insurance Scheme (MNAIS). PMFBY would be available at a premium of:
·       upto 1.5% for Rabi and upto 2% for Kharif for Food crops, Pulses and Oilseeds and
·       upto 5% for Annual Horticulture/ Commercial Crops.
·       This scheme would provide insurance cover for all stages of the crop cycle.

Weather Based Crop Insurance Scheme (WBCIS) has been brought on par with PMFBY. In addition, a Unified Package Insurance Scheme (UPIS) has also been approved for implementation on pilot basis in 45 districts of the country to cover other assets/activities like machinery, life, accident, house, student-safety and crops etc. of farmers.

The scheme is compulsory for loanee farmers availing Seasonal Agricultural Operational (SAO) Loans/ KCC holders for the notified crops in notified areas. 100% coverage of such loanee farmers is required to be done by all concerned bank branches.

This scheme is voluntary for non-loanee farmers, but they should have an account.

This scheme is linked to crop loans taken by farmers through KCC and stopping multiple insurance coverage, against such accounts is important.

A Crop Insurance Portal www.agri-insurance.gov.in has been operationalised by GOI for effective administration of the Crop Insurance Programme.

Government of India has proposed to initiate development of an integrated platform on a pilot basis for providing real time information at one place for use by all agencies.

Banks are required to ensure coverage of 100% of defined loanee farmers and  non-loanee farmers with effect from April 1, 2016.

Based on RBI Circular dt 17/03/16. Please visit www.rbi.org.in for any further clarification if required….. Poppy