Kisan Credit Card

Why is in news? "Ghar-Ghar KCC Abhiyaan": A Transformative Initiative to Ensure Kisan Credit Card Access for Fish Farmers

In a significant step towards enhancing financial inclusion and support for the fisheries sector, Secretary (Fisheries), chaired a pivotal meeting focusing on the 'Ghar-Ghar KCC Abhiyaan.'

In his address, he emphasized the need for expansion of KCC facility to the last mile of the fisheries value chain, ensuring that every eligible individual is covered.

He also stated that reason for rejection of KCC applications need to be analysed and efforts to be made to reduce the rejection and approval of application needs to be fast tracked.

Secretary informed that Special KCC campaign during Sagar Parikrama is encouraging and urged all the participants for their cooperation to ensure the successful execution of the 'Ghar-Ghar KCC Abhiyaan’.

About:

The Kisan Credit Card (KCC) scheme wasintroduced in 1998for issue of Kisan Credit Cards to farmers on the basis of their holdings for uniform adoption by the banks so that farmers may use them toreadily purchase agriculture inputs such as seeds, fertilizers, pesticides etc. and draw cash for their production needs.

This model scheme was prepared by the National Bank for Agriculture and Rural Development (NABARD) on therecommendations of the R. V. Gupta Committeeto provide advances for agricultural needs.

Its objective was 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 allcommercial banks, Regional Rural Banks, and state co-operative banks.

The scheme entailsshort-term credit for crops and term loans.

Eligibility: The age of the applicants or farmers must be between18-60 years old. Applicants (individuals/groups of people)must own agricultural land. In case individuals/group of people do not have their own land, theymust take rented land for cultivation.

KCC credit holders are also covered underpersonal accident insuranceup to ₹50,000 for death and permanent disability, and up to ₹25,000 for other risks. The premium is borne byboth the bank and the borrower in a 2:1 ratio.

The validity period isfive years, with an option to extend it up to three more years.

Kisaan Credit Card (KCC) credit to the farmers is of two types, viz., 1Cash Credit(for working capital) and 2Term Credit(for capital expenditure such as the purchase of cattle, pump sets, land development, plantation, drip irrigations, etc.