✎ PMFBY covers non-preventable natural disasters and select add-on risks like wild animal damage, funded by states.

Relevance for Banking, SSC & RBI Grade B exams: Polity & Governance

The Pradhan Mantri Fasal Bima Yojana (PMFBY), launched in 2016-17, offers voluntary crop insurance to farmers against non-preventable natural calamities from pre-sowing to post-harvest stages for notified crops and areas. While wild animal attacks were initially excluded, states can now notify them as an add-on cover under PMFBY, borne by state governments, based on individual assessments, as per operational guidelines. Flood risk is covered for all notified crops, except for hydrophilic crops like paddy, jute, mesta, and sugarcane, where insurance is available except in local claim cases. This scheme, implemented jointly with state governments, aims to mitigate financial losses due to natural disasters, ensuring agricultural stability.

For banking and SSC aspirants, understanding PMFBY’s risk coverage—such as natural disasters, wild animal attacks (as an add-on), and flood risks—highlights government initiatives for rural welfare and financial inclusion. RBI Grade B candidates should note how such schemes reflect policy interventions in agriculture, a key sector influencing inflation, credit demand, and rural economy, often tested in economic awareness sections. The scheme’s voluntary nature and state participation also underscore federal governance dynamics, relevant for polity-based questions in competitive exams.

Source: PIB (Press Information Bureau)

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