Andaman & Nicobar Islands, Manipur, Mizoram and Sikkim are yet to open Escrow Accounts under the PMFBY,said Minister of State for Agriculture and Farmers Welfare Ramnath Thakur
New Delhi:20 of the 24 Pradhan Mantri Fasal Bima Yojana(PMFBY) implementing states have already opened the escrow account and utilising the same for deposit and disbursement of State/UT share in premium subsidy since Kharif 2025,said Minister of State for Agriculture and Farmers Welfare, said Ramnath Thakur in a written reply in Rajya Sabha on Friday.
The UT/States of Andaman & Nicobar Islands, Manipur, Mizoram and Sikkim are yet to open Escrow Accounts under the PMFBY,said Thakur.
On the basis of relevant provisions of revised PMFBY Operational Guidelines, 2023 which provides for mechanism of Escrow Account wherein states/UTs(union terrotories) are required to commit their liabilities in advance by releasing their share of premium subsidy in advance, an Escrow Account will be maintained by State/UTs for their share in premium subsidy, and such other purposes as may be notified by Department of Agriculture and Farmers Welfare (DA&FW), from time to time.
The state/union territories(UTs) shall commit their liabilities for each season in advance through release of 50% advance premium subsidy based on the corresponding previous seasons premium subsidy for each insurance company in the respective Escrow Account and release subsequent instalments following the seasonality discipline provided in the operational Guidelines.
The concerned insurance company will confirm the deposit of the advance upfront premium by the concerned State/UT government to the escrow account on the Subsidy Module of National Crop Insurance Portal (NCIP). NCIP would only be opened for enrolment upon receipt of such confirmation.
The respective nodal State Departments i.e., Agriculture Department and Horticulture Departments manages the Escrow Account.
The Escrow Accounts are opened in a Scheduled Commercial Banks or Cooperative Banks as per States own prerogative. The State Departments enter into a multi-party agreement with the respective Banks and implementing Insurance Companies.
Since the Escrow Account mechanism has been operationalized recently from Kharif 2025 season, the possibility of impact analysis of the said mechanism does not arise.