KISAN CREDIT CARD (Syllabus: GS Paper 3 – Economy)

Context: Recently, the Union Fisheries, Animal Husbandry, and Dairying minister announced that fishermen will be provided cards similar to the Kisan Credit Card.

Kisan Credit Card (KCC)

• Nodal Ministry: Ministry of Fisheries, Animal Husbandry and Dairying.
• Origin: It was introduced in 1998 based on a model scheme prepared by the National Bank for Agriculture and Rural Development (NABARD).
• Implementing Agencies: Commercial Banks, Regional Rural Banks (RRBs), Small Finance Banks & Cooperatives
• Objectives: To meet the short-term credit requirement for cultivation.

oTo manage post-harvest expenses.

oTo meet the consumption requirement of the farmer’s household.

• Key Features

oKCC offers several benefits, including an ATM-enabled RuPay Card, simplified documentation, automatic limit escalation, and unrestricted withdrawals within the set limit.

oExpansion of Eligibility: In 2004, the eligibility criteria for the program were broadened to encompass farmers' requirements for investment credit, covering both agricultural and non-farm activities.

oDiverse Financial Support: KCC caters to various financial needs of farmers, such as post-harvest expenses, loans for selling produce, and meeting household consumption requirements.

oFlexible Repayment Schedule: The repayment period under KCC is determined based on the crop's harvesting and marketing duration, offering flexibility to farmers.

oLoan Duration: KCC provides short-term agriculture loans with a maximum tenure of 1 year and long-term loans with a duration of up to 5 years.