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Sumreen Sikander11108788

B29

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Kissan Credit Card

The Kisan Credit Card is a credit card to provideaffordable credit for farmers in IndiaIt was started by the Government of India , ReserveBank of India (RBI), and National Bank for Agricultural and Rural Development (NABARD) in1998-99 to help farmers access timely and adequatecredit.The Kisan Credit Card allows farmers to have cashcredit facilities without going through time-consuming bank credit screening processes repeatedly

http://en.wikipedia.org/wiki/Government_of_Indiahttp://en.wikipedia.org/wiki/Reserve_Bank_of_Indiahttp://en.wikipedia.org/wiki/Reserve_Bank_of_Indiahttp://en.wikipedia.org/w/index.php?title=National_Bank_for_Agricultural_and_Rural_Development&action=edit&redlink=1http://en.wikipedia.org/w/index.php?title=National_Bank_for_Agricultural_and_Rural_Development&action=edit&redlink=1http://en.wikipedia.org/w/index.php?title=National_Bank_for_Agricultural_and_Rural_Development&action=edit&redlink=1http://en.wikipedia.org/w/index.php?title=National_Bank_for_Agricultural_and_Rural_Development&action=edit&redlink=1http://en.wikipedia.org/wiki/Reserve_Bank_of_Indiahttp://en.wikipedia.org/wiki/Reserve_Bank_of_Indiahttp://en.wikipedia.org/wiki/Government_of_India

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CONTINUEDRepayment can be rescheduled if there is a bad cropseason, and extensions are offered for up to four years

The card is valid for three years and subject to annualrenewals

Withdrawals are made using slips, cards, and apassbook

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KCC Services Offered by IDBICrop loan with Kisan Credit Card

Credit to farmers or groups of farmers for crop loans, working capital or investment credit for agriculturepurpose

All farmers, owner cultivators , tenant cultivators, sharecroppers and individual farmers having agreement with institution are eligible for the card.

http://en.wikipedia.org/wiki/Cultivatorshttp://en.wikipedia.org/wiki/Cultivators

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Objectives of the Scheme To provide insurance coverage and financial support tothe farmers in the event of failure of crops as a result of natural calamities, pests and diseases.To encourage farmers to adopt progressive farmingpractices, high value inputs and higher technology inagriculture.

To help stabilize farm incomes, particularly in disaster years

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Documents needed for KCCSarpanch Parman Patra

Voter I-Card

Residential Proof

8 Photographs

Land Map

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Features of Kissan Credit CardEligible farmers to be provided with a Kisan CreditCard and a pass book or card-cum-pass book

Card valid for 3 to 5 years subject to annual review. Asincentive for good performance, credit limits could beenhanced to take care of increase in costs

Each drawal to be repaid within a maximum period of 12 months

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CONTINUEDSecurity, rate of interest, etc. as per RBI norms.

Withdrawals through slips/cheques accompanied by cardand passbook.

Crop loans disbursed under KCC Scheme for notified cropsare covered under Rashtriya Krishi Bima Yojna (NationalCrop Insurance Scheme), a crop insurance schemeintroduced at the behest of Government of India to protectthe interest of the farmer against loss of crop yield causedby natural calamities, pest attacks etc

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Advantages of the Kisan Credit

Card Scheme to the farmers Access to adequate and timely credit to farmers.

Full year's credit requirement of the borrower takencare of.

Minimum paper work and simplification of

documentation for drawal of funds from the bank

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CONTINUED Improvement in recycling of funds and better recovery of loans

Reduction in transaction cost to the banks

Better Banker - Client relationships

Assured availability of credit at any time enablingreduced interest burden for the farmer

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Drawbacks of KCCOnly 40 per cent of the total 760 million farmers havebeen distributed KCCs against the target of covering allfarmers by March 31, 2012. Except for Bank of Rajasthan no private bank has issued any Kisan CreditCard to farmers. Similarly, Andhra Bank, CorporationBank, United BankOnly a few banks from the State Bank group have also

issued cards to the farmers against the total issuanceof the group of 71,419 cards with a credit limit of Rs515.66 crore and disbursement of Rs 48.06 crore (as onDecember 31, 2012).

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CONTINUEDCommercial banks have issued only 180,754 kisancredit cards of the 417,323 kisan credit cards issued by all banks. The regional rural banks have issued 63,002credit cards and co-operative banks have issued173,567 cards.Commercial bankers have urged the department of agriculture to provide block-wise list of number of farmers and cards issued to them so that the rest of thefarmers can be covered but bankers are not interestedin making any data on farmers

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ConclusionKCC is a boon for the farmers

Government is not able to provide KCC to every farmer

If Proper steps or initatives are taken by thegovernment the farmers will benefit a lot from theKCC as they can get loan from banks for cropcultivation and farmers need not to go to money lenders who charge them huge interest

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