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Govt Approved Changes in PMFBY

Published on February 23, 2020
Current context: The Union Cabinet, chaired by Prime Minister Narendra Modi has approved major changes in the Pradhan Mantri Fasal Bima Yojana (PMFBJ) on 19th February 2020.
Govt Approved Changes in PMFBY 
  • The cabinet has also approved the Restructured Weather Based Crop Insurance Scheme (RWBCIS). 
  • The changes allow making it optional for farmers with a view to plug loopholes in the farm insurance scheme.
  • The move is also aimed at increasing the coverage in the north-eastern region enabling farmers to manage their agricultural risk in a better way.
    1. According to the modifications, the allocation of business to insurance companies will be done for three years under both the schemes.
    2. The states/UTs will be given the option to choose the scale of finance.
    3. Also, the farm gate price will be considered for the other crops for which MSP is not declared.
    4. The states/UTs will also be given the flexibility to implement the Scheme with the option to select any or many additional risk covers.
    5. The centre’s share in premium subsidy is to be increased to 90% for the north-eastern states from the existing sharing pattern of 50:50 under both the schemes.
    6. Also, the provisioning of at least 3%of the total allocation for the scheme is to be made by the government for administrative expenses.
  • PMFBJ was launched in February 2016 by the Prime Minister Narendra Modi.
  • Under the scheme, it is mandatory for loanee farmers to take insurance cover under this scheme.
  • Currently, 58 per cent of the total farmers are loanee.
  • These changes are proposed to be implemented from Kharif’ 2020 Season throughout the country.

Question: 

Q.1 The Pradhan Mantri Fasal Bima Yojana was launched in which year?
a. 2014
b. 2016
c. 2018
d. 2019
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