What Is the Full Form of WBCIS in Banking?

The Full Form of ‘WBCIS’ in Banking is ‘Weather Based Crop Insurance Scheme’.

Full Form of WBCIS

The full form of WBCIS in banking is the Weather Based Crop Insurance Scheme. This is a scheme that provides financial protection to farmers against losses due to adverse weather conditions such as excessive rain, drought or hailstorms. The scheme has been implemented by National Agricultural Insurance Company (NAIC) and its subsidiaries since 1999, and is administered by the Department of Agriculture and Cooperation (DAC).

The WBCIS is an innovative risk management tool which helps to reduce the financial burden of crop losses caused due to extreme climatic conditions. It also ensures that farmers are compensated for their losses and can get back on their feet quickly after a disaster. Under this scheme, insurance companies calculate the premium payable for different crops based on the weather data obtained from reliable sources like Indian Meteorological Department (IMD) and Regional Meteorological Centres (RMC). The premium rates are also revised periodically based on analysis of past climatic conditions.

This scheme has been widely accepted by Indian farmers as it enables them to protect their crops against unexpected weather-related losses. Moreover, it provides them with timely compensation when their crops suffer damage due to extreme weather conditions. Farmers who take up this insurance cover can receive a maximum sum assured of Rs. 15 lakhs per hectare annually depending upon the crop insured and other factors like location, soil type, etc.

Apart from providing financial protection to farmers against crop loss due to bad weather, WBCIS also helps reduce wastage of resources as well as promote efficient use of water by ensuring that irrigation facilities are utilized only when necessary. Additionally, the scheme helps in maintaining market stability by preventing price fluctuations in agricultural commodities caused by sudden change in supply due to crop failure or pest infestation.

Overall, WBCIS is an effective risk management tool which benefits both farmers and insurers alike by providing suitable compensation for losses incurred due to uncertain weather conditions while also reducing wastage of resources and promoting efficient use of water in agriculture.

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