Cabinet nod to revamp Pradhan Mantri Fasal Bima Yojana

The Union Cabinet has has approved the revamping of Pradhan Mantri Fasal Bima Yojana (PMFBY) and Restructured Weather Based Crop Insurance Scheme (RWBCIS) to address the existing challenges in the implementation of Crop Insurance Schemes.

A decision to this effect was taken at the meeting of Union Cabinet here on Wednesday, which was chaired by Prime Minister Narendra Modi.

As per the decision, certain parameters or provisions of the ongoing schemes of PMFBY and RWBCIS will be modified, while the allocation of business to the insurance companies will be done for three years.

The option shall be given to States/UTs to choose the scale of finance or district level Value of Notional Average Yield (NAY), that is, Minimum Support Price (MSP) as Sum Insured for any district crop combination for both PMFBY and RWBCIS.

According to an official statement, the Department of Agriculture, Cooperation and Farmers Welfare in consultation with other stakeholders, agencies will prepare and develop State-specific, alternative risk mitigation programme for crops and areas having a high rate of premium.