1. RBI asks banks to strictly comply with crop insurance scheme

RBI asks banks to strictly comply with crop insurance scheme

Directing banks for strict compliance to expand reach of Pradhan Mantri Fasal Bima Yojna (PMFBY), Reserve Bank has asked them not to be lax on entering details of farmers in the portal for corp insurance managed by the Agriculture Ministry.

By: | Mumbai | Published: August 25, 2016 9:49 PM
To increase presence of banking system, Mundra said, the RBI has given licence 10 entities for small finance bank. RBI said it was brought to its notice that entries of the farmers were not being made by the bank branches in the portal meant for crop insurance. (Reuters)

Directing banks for strict compliance to expand reach of Pradhan Mantri Fasal Bima Yojna (PMFBY), Reserve Bank has asked them not to be lax on entering details of farmers in the portal for corp insurance managed by the Agriculture Ministry.

RBI said it was brought to its notice that entries of the farmers were not being made by the bank branches in the portal meant for crop insurance.

Earlier in March, RBI had directed banks to ensure strict compliance of the provisions of Prime Minister’s crop insurance scheme as well as ensure coverage of 100 per cent of defined loanee farmers.
They were also asked to ensure coverage of good number of non-loanee farmers to achieve the defined objectives and targets fixed under the scheme.

According to the PMFBY operational guidelines, banks are also expected to capture all relevant data including land and crop details of all loanee farmers and non-loanee farmers availing crop insurance through the branches.

The Ministry of Agriculture & Farmers Welfare had advised all banks to enter farmer details in the unified portal for crop insurance — www.agriinsurance.gov.in.

However, as the entries are not being filled, RBI said the Agriculture Ministry as well as state governments are not able to cull out any data leading to difficulties in assessment of coverage of crops insured, premiums deducted etc.

“You (banks) are therefore advised to issue necessary instructions to your branches to feed the relevant data in the portal at the earliest,” RBI said in a notification.

Under the crop insurance scheme, farmers are required to pay only minimal premium and can claim compensation for losses caused by natural calamities up to 14 days after the harvest.

Prime Minister Narendra Modi had launched the PMFBY in January this year.
Last week, Union Agriculture Minister Radha Mohan Singh expressed hope to cover four crore farmers under the scheme in the current fiscal.

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