Kisan Credit Card (KCC)

Published: 13th Jul, 2019

Kisan Credit Cards Scheme has been extended to fisheries and animal husbandry by Ministry of State for Fisheries, Animal Husbandry and Dairying

Context

Kisan Credit Cards Scheme has been extended to fisheries and animal husbandry by Ministry of State for Fisheries, Animal Husbandry and Dairying

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The extension of KCC will include both inland and marine fisheries.
Banks have been instructed to extend credit facilities to individual fishermen, fishermen groups, self-help groups and women self-help groups engaged in inland and marine fisheries.
The District-Level Technical Committee would fix the scale of finance and the banks would fix the repayment period.

Purpose

The KCC facility will meet the short term credit requirements of rearing of animals, birds, fish, shrimp, other aquatic organisms, capture of fish'
It will prevent fishermen from taking loans from local moneylenders at exorbitant interest rates.

KCC Scheme

KCC scheme was prepared by National Bank for Agriculture and Rural Development (NABARD) on the recommendation of R.V. Gupta committee in 1998-99 to fulfil the financial requirements of the farmers at various stages of farming through institutional credit.
Small and Marginal farmers, share croppers, lessee and tenant farmers and self-help groups (SHGs) or Joint Liability Groups (JLGs)are eligible to get the benefits of the KCC Scheme.
In case of credit limit above Rs. 1 lakh, beneficiary has to pledge the crops or pledge his land as mortgage.
However, collateral security may be obtained at the discretion of bank in some cases.
KCC is valid for 5 years subject to annual review and performance of the borrower.

Objectives of KCC Scheme

To provide institutional credit to the farmers at the cheap rate of interest
To provide credit at the time of requirement
To support Post-harvest expenses
Working capital for maintenance of farm assets and activities allied to agriculture
Investment credit requirement for agriculture and allied activities (land development, pump sets, plantation, drip irrigation etc.)
Consumption requirements of farmers

Who implemented this scheme?

The KCC scheme is being implemented by the all Co-operative banks, Regional Rural Banks and public sector banks throughout the country. NABARD monitors the scheme in terms of the Cooperative Banks & RRBs and RBI in respect of Commercial Banks.
A new feature is started in the KCC scheme by the RBI and NABARD which provides ATM card to farmers which can be used at all ATMs and point of sale terminals.

RuPay Kisan Credit Card

RuPay is an Indian domestic card scheme conceived and launched by the National Payments Corporation of India (NPCI). It was created to fulfill the Reserve Bank of India’s desire to have a domestic, open loop, and multilateral system of payments in India.
RuPay facilitates electronic payment at all Indian banks and financial institutions, and competes with MasterCardand Visa in India.
NABARD, in January, 2013 set up Special Project Unit- Kisan Credit Card (SPU-KCC) with a mandate for encouraging cooperative banks and Regional Rural Banks across the country to issue Rupay KCC debit cards.
The overarching goal is to develop cash-less eco system by enabling the farming community to avail all new banking facilities at par with urban area of the country.

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