Daijiworld Media Network - Bengaluru (SP)

Bengaluru, Jun 10: In connection with the controversy over disbursal of crop insurance amounting to to as less as one rupee to the accounts of farmers who had lost their crop last year, the state government has clarified that the said credit was made only for testing the system.

The transfer of Re 1 to accounts of farmers had stirred a controversy, with a section of the media and the opposition creating a furore.

The government said that the settlement subsidy relating to crop loss has to be done through direct benefit transfer to bank accounts of farmers that are linked to Aadhar numbers of the beneficiaries.

Accordingly, steps are being taken to transfer the amount of input subsidies to the bank accounts of beneficiaries directly by using software. It said that that till June 6, 2017, Rs 1,459.1 crore was disbursed to 21.90 lac accounts of farmers by way of direct transfer.

Still, there are about 1,82,000 accounts of beneficiary farmers whose accounts are not linked to Aadhar. Therefore, as a test check, one rupee each was transferred to their accounts through National Payment Corporation of India. Steps are being taken to credit differential amounts wherever such test credits have been successful, it has clarified.