It is proposed to modify following provisions of PMFBY and RWBCIS:
- Allocation of business to Insurance Companies to be done for three years (Both PMFBY/RWBCIS).
- Option shall be given to States/UTs to choose Scale of Finance or district level Value of Notional Average Yield (NAY) i.e. Minimum Support Price (MSP) as Sum Insured for any district crop combination (Both PMFBY/RWBCIS).
- Central Subsidy under PMFBY/RWBCIS to be limited for premium rates upto 30% for unirrigated areas/crops and 25% for irrigated areas/crops. Districts having 50% or more irrigated area will be considered as irrigated area/district (Both PMFBY/RWBCIS).
- Enrolment under the Scheme to be made voluntary for all farmers (Both PMFBY/RWBCIS).
- Central Share in Premium Subsidy to be increased to 90% for North Eastern States from the existing sharing pattern of 50:50 (Both PMFBY/RWBCIS).
- Provisioning of at least 3% of the total allocation for the Scheme to be made by Government of India and Implementing State Governments for administrative expenses. This shall be subject to an upper cap fixed by DAC&FW for each State (Both PMFBY/RWBCIS).
- These changes are proposed to be implemented from Kharif’ 2020 Season throughout the Country.
