Call Us Now

+91 9606900005 / 04

For Enquiry

legacyiasacademy@gmail.com

KISAN CREDIT CARDS (KCC) CAMPAIGN

Focus: GS-III Agriculture

Why in news?

Under a special drive, the Government will provide Kisan Credit Card (KCC) to 1.5 crore dairy farmers belonging to Milk Unions and Milk producing Companies by 31st July.

The Need and Details

  • The special drive to provide KCC to 1.5 crore dairy farmers is part of the Prime Minister’s Atma Nirbhar Bharat package for Farmers.
  • As dairy is among the fastest growing sectors of the economy with a CAGR of above 6% in the last 5 years, providing short term credit to dairy farmers for meeting their requirements for working capital, marketing etc. will boost their productivity tremendously.

Kisan Credit Card (KCC)

  • The Kisan Credit Card (KCC) scheme is a credit scheme introduced in August 1998 by Indian banks.
  • This model scheme was prepared by the National Bank for Agriculture and Rural Development (NABARD) on the recommendations of R. V. Gupta committee to provide term loans for agricultural needs.
  • Its objective is to meet the comprehensive credit requirements of the agriculture sector and by 2019 for fisheries and animal husbandry by giving financial support to farmers.
  • Participating institutions include all commercial banks, Regional Rural Banks, and state co-operative banks.

Provision of the KCC Scheme

  • KCC covers post-harvest expenses, produce marketing loan, consumption requirements of farmer household, working capital for maintenance of farm assets and activities allied to agriculture, investment credit requirement for agriculture and allied activities.
  • The scheme comes with an ATM-enabled RuPay debit card with facilities for one-time documentation, built-in cost escalation in the limit, and any number of withdrawals within the limit.
  • The scheme has short term credit limits for crops, and term loans.
  • Individuals involved in farming and agricultural activities can apply for the KCC. Farmers who cultivate on the land of other people are also eligible to apply for the Card.
  • Farmers get the loan of up to Rs 3 Lakh at reduced Interest Rate of 7%. If a farmer manages to repay the loan amount on due date then another 3% rebate can be availed, making the effective Interest Rate as just 4%.
  • Farmers can use the KCC card for purchasing seeds, pesticides, fertilizers, for doing payment to labourers, for withdrawal of cash and for purchasing agriculture related products and equipment.
  • KCC credit holders are covered under personal accident insurance up to ₹50,000 for death and permanent disability, and up to ₹25,000 for other risk.
Download PDF
October 2022
MTWTFSS
 12
3456789
10111213141516
17181920212223
24252627282930
31 
Categories