Restructured Weather Based Crop Insurance Scheme (RWBCIS): How It Differs from PMFBY

Last updated: 2026-11-13 · MockMentor

The Restructured Weather Based Crop Insurance Scheme (RWBCIS) insures crops against bad weather, and pays claims based on weather readings rather than measured yield loss. It was launched on 18 February 2016 alongside the PM Fasal Bima Yojana and follows the same premium rates.

In one line: crop insurance that uses rainfall, temperature, humidity and wind data as a stand-in for crop loss, so claims can be settled faster.

At a glance

Item Details
Launched 18 February 2016
Who can join All farmers, including sharecroppers and tenants, growing notified crops
Enrolment Voluntary for all farmers from Kharif 2020
Risk period Sowing to maturity
Farmer's premium 2% (kharif food and oilseeds), 1.5% (rabi), 5% (commercial and horticultural)
Subsidy sharing Centre and State 50:50; 90:10 in North-Eastern and Himalayan States

Weather risks covered

Deficit, excess or unseasonal rain, dry spells, relative humidity, high and low temperature, wind speed, and combinations of these. Hailstorms and cloudbursts can be added as optional covers.

RWBCIS vs PMFBY

Point PMFBY RWBCIS
Basis Actual yield loss Weather index
Measurement Crop-cutting experiments and technology Weather stations
Claims Need yield data Faster, no crop-cutting needed for main risks

Facts to remember

  • All insured farmers in a Reference Weather Unit Area get the same claim rate.
  • In January 2025 the Cabinet extended PMFBY and RWBCIS to 2025-26 with ₹69,515.71 crore, and set up a ₹824.77 crore Fund for Innovation and Technology for YES-TECH and WINDS.

Possible exam questions

  1. What is basis risk in weather-index insurance, and how can better weather networks reduce it?
  2. Should India move more crops from yield-based to weather-based insurance?

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