In a move to ensure the financial security of farmers, the Central Government will digitally transfer over ₹3,200 crore in crop insurance claim payments directly to the bank accounts of more than 30 lakh farmers under the Pradhan Mantri Fasal Bima Yojana (PMFBY) on Monday.
The historic event, to be held at the Jhunjhunu Airstrip in Rajasthan, will be chaired by Union Minister for Agriculture & Farmers’ Welfare and Rural Development Shivraj Singh Chouhan, with Rajasthan Chief Minister Bhajanlal Sharma as the Chief Guest. Union Minister of State for Agriculture Bhagirath Choudhary, Rajasthan Agriculture Minister Dr. Kirodi Lal Meena, senior officials, farmer leaders, and public representatives will also attend. Large numbers of farmers from Jhunjhunu, Sikar, Jaipur, Kotputli-Behror and surrounding districts are expected to participate, while lakhs more across the country will join virtually.
Of the total amount to be disbursed, farmers in Rajasthan will receive ₹1,121 crore, benefitting over 7 lakh cultivators. Madhya Pradesh farmers will get ₹1,156 crore, Chhattisgarh ₹150 crore, and other states ₹773 crore. This is the first time such a large-scale crop insurance payout will be made in a single day through Direct Benefit Transfer (DBT).
Highlighting the scheme’s focus on transparency and technology, Chouhan said that timely claim settlements would strengthen farmers’ finances, boost their confidence to invest, and improve resilience against agricultural risks. A new simplified settlement process has been introduced, allowing claims to be paid proportionately based on the central subsidy without waiting for the state’s premium share. From the Kharif 2025 season, delays in state government contributions will attract a 12% penalty, while insurance companies delaying payments will have to compensate farmers at the same rate.
Since its launch in 2016 by Prime Minister Narendra Modi, PMFBY has covered over 78 crore farmer applications and disbursed claims worth ₹1.83 lakh crore against a total farmer-paid premium of ₹35,864 crore — a payout ratio of over five times the premium.
The scheme has incorporated multiple technological tools such as YES-TECH, the WINDS portal, the AIDE mobile app, the Krishi Rakshak Portal, and a dedicated helpline (14447) to improve claim settlement speed, enhance weather data accuracy, and enable easier farmer registration at the village level.
Calling PMFBY a “farmer-empowering initiative,” Chouhan said it reflects the government’s commitment to strengthening rural livelihoods and advancing the vision of Atmanirbhar Bharat.
