Centre transfers ₹3,200 crore in crop insurance claims under the Pradhan Mantri Fasal Bima Yojana to over 30 lakh farmers in one day

Union agriculture minister Shivraj Singh Chouhan on Monday announced that the government has digitally transferred ₹3,200 crore in crop insurance claims under the Pradhan Mantri Fasal Bima Yojana (PMFBY) to over 30 lakh farmers across the country.

“Today, approximately 30 lakh farmers affected by natural disasters will have ₹3200 crore deposited into their accounts under the Prime Minister’s Crop Insurance Scheme. This is the first instalment, so farmers whose accounts do not receive funds today should not worry. Approximately ₹8000 crore will be released later,” Chouhan wrote in a post on X.

The amount was credited directly to beneficiaries’ bank accounts, and an additional ₹8,000 crore will be transferred into the remaining bank accounts. Earlier the government had stated that Chouhan would do the transfer during his physical visit in Jhunjhunu, however, the transfer was done with his virtual presence.

Of the total payout, ₹1,156 crore went to farmers in Madhya Pradesh, ₹1,121 crore to farmers in Rajasthan, ₹150 crore to Chhattisgarh and ₹773 crore to other states. This is the first time such a large-scale payout has been made in a single day through Direct Benefit Transfer.

Chouhan said a simplified claim settlement process now allows payments based on the Centre’s subsidy share without waiting for state contributions. From Kharif 2025, delays in state subsidy payments or by insurance companies will attract a 12% penalty payable to farmers.

“This scheme has become a boon for disaster-affected farmers. To ensure farmers receive funds on time, we have decided that if an insurance company fails to deposit the money within the stipulated time frame after a claim, it will have to pay 12% interest, which will go directly to the farmer’s account,” Chouhan added.

Chouhan said that the scheme unveiled in 2016, covering over 78 crore farmer applications and disbursed claims worth ₹1.83 lakh crore, while farmers have paid only ₹35,864 crore in premiums.