Escrow Account Mechanism under Revised PMFBY Guidelines Implemented from Kharif 2025; 20 States Already Onboard

**Executive Summary** This document outlines the implementation of an Escrow Account mechanism under the revised Pradhan Mantri Fasal Bima Yojana (PMFBY) operational guidelines from Kharif 2025. It specifies that states/UTs must establish Escrow Accounts to commit their premium subsidy share in advance. As of now, 20 out of 24 PMFBY-implementing states have opened and are utilizing these accounts. **Key Points / Main Content** * **Escrow Account Requirement:** * States/UTs must maintain an Escrow Account for their share of premium subsidy. * Accounts used for premium subsidy and other purposes as notified by DA&FW, GoI. * **Advance Premium Subsidy Release:** * States/UTs must commit liabilities by releasing a 50% advance premium subsidy each season. * Based on the previous season's premium subsidy for each Insurance Company in the respective Escrow Account. * Subsequent installments released following the seasonality discipline in the guidelines. * **Insurance Company Confirmation:** * Insurance Companies must confirm the State/UT deposit of the advance premium to the escrow account. * Confirmation happens on the Subsidy Module of the National Crop Insurance Portal (NCIP). * NCIP opens for enrollment only upon confirmation receipt. * **Current Status:** * 20 out of 24 PMFBY-implementing states have opened and are utilizing Escrow Accounts. * Andaman & Nicobar Islands, Manipur, Mizoram, and Sikkim are yet to open Escrow Accounts. * **Account Management:** * State Agriculture and Horticulture Departments manage the Escrow Accounts. * Escrow Accounts are opened in Scheduled Commercial Banks or Cooperative Banks at the State’s discretion. * State Departments enter into a multi-party agreement with Banks and Insurance Companies. **Impact Analysis** **State/UT Governments** * **Impact:** Required to establish and maintain Escrow Accounts. Need to commit liabilities in advance. * **Action Required:** Open and operationalize Escrow Accounts. Release 50% advance premium subsidy each season. **Insurance Companies** * **Impact:** Need to confirm State/UT deposits to the escrow account. * **Action Required:** Confirm the deposit on the Subsidy Module of National Crop Insurance Portal (NCIP). **Nodal State Departments (Agriculture & Horticulture)** * **Impact:** Responsible for managing the Escrow Accounts. * **Action Required:** Oversee the operation of Escrow Accounts. Enter into agreements with Banks and Insurance Companies.

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