1. RBI advises banks to comply with crop insurance plan provisions

RBI advises banks to comply with crop insurance plan provisions

The Reserve Bank of India (RBI) has advised banks to ensure strict compliance of the provisions of the crop insurance schemes and ensure coverage of 100% of defined loanee farmers along with a good number of non-loanee farmers with effect from April 1.

By: | Mumbai | Published: March 18, 2016 12:19 AM
The Reserve Bank of India (RBI) has advised banks to ensure strict compliance of the provisions of the crop insurance schemes and ensure coverage of 100% of defined loanee farmers along with a good number of non-loanee farmers with effect from April 1. The Reserve Bank of India (RBI) has advised banks to ensure strict compliance of the provisions of the crop insurance schemes and ensure coverage of 100% of defined loanee farmers along with a good number of non-loanee farmers with effect from April 1.

The Reserve Bank of India (RBI) has advised banks to ensure strict compliance of the provisions of the crop insurance schemes and ensure coverage of 100% of defined loanee farmers along with a good number of non-loanee farmers with effect from April 1.

The central bank indicated that 100% coverage of loanee farmers in notified areas growing notified crops is required to be done by all concerned bank branches as the scheme is compulsory for loanee farmers availing seasonal agricultural operational (SAO) loans/kisan credit card (KCC) holders for the notified crops in notified areas.

Another issue which needs to be addressed is the lack of compilation of land details and crop sown details of the loanee farmers availing crop loan by the banks which has resulted in non-availability of requisite data on real time basis for monitoring and planning purposes, the central bank pointed out.

“In the present system banks are using different formats for capturing requisite data of land and crop details of farmers which is not accessible on the system for all concerned agencies for cross verification,” RBI said.

It further stated that a crop insurance portal has been operationalised by the government for effective administration of the crop insurance programme but its integration with banks is essential for capturing the requisite data/information on real time basis.

In view of this, the government 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, RBI said.

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