Kisan Credit Card

Why in News?

Farmers access crop loan primarily through Kisan Credit Cards (KCC)

 

FACTS FOR PRELIMS

KCC

A Kisan Credit Card (KCC) is a credit delivery mechanism that is aimed at enabling farmers to have quick and timely access to affordable credit. It was launched in 1998 by the Reserve Bank of India and NABARD.

The Kisan Credit Card scheme is being implemented in all the States and Union Territories by all commercial banks, Regional Rural Banks, state co-operative banks, central co-operative banks, and primary agricultural co-operative societies.

The scheme aims to reduce farmer dependence on the informal banking sector for credit – which can be very expensive and suck them into a debt spiral. The card is offered by cooperative banks, regional rural banks and public sector banks. Based on a review of the working of the KCC, the government has advised banks to convert the KCC into a smart card cum debit card.

Significance

Efforts are on to double the income of farmers by 2022. Access to institutional credit and crop insurance are two important steps in this direction. According to the 70th round of NSSO survey (2013), 52 percent of the farmer households were indebted, of which 60 percent had accessed formal credit.

Efforts are on to double the income of farmers by 2022. Access to institutional credit and crop insurance are two important steps in this direction. According to the 70th round of NSSO survey (2013), 52 percent of the farmer households were indebted, of which 60 percent had accessed formal credit.  It is also observed that the eastern and the north-eastern parts of the country receive proportionately less credit as compared to the western or southern parts.

 

Source-Indian Express.