Lok Sabha Question No. 3246 (UNSTARRED), answered on 2017-08-04
Subject: Kisan Credit Cards
Ministry: FINANCE
Asked by: GOWDAR MALLIKARJUNAPPA SIDDESHWARA

## Government of India Ministry of Finance Department of Financial Services LOK SABHA

Unstarred Question No. 3246

To be answered on Friday, August 4, 2017/Shravana 13, 1939 (Saka)

## Kisan Credit Cards

3246. SHRI G.M. SIDDESHWARA

Will the Minister of FINANCE be pleased to state:

- (a)  the  total  number  of  Kisan  Credit  Cards  (KCCs)  issued  by  the  Government  during  the  last  three years, State-wise;
- (b)  the  average  amount of funds transferred to KCCs and the total amount of outstanding  loans on farmers, State-wise;
- (c)  whether  the  Government has taken any steps to  waive off the farmer's loan during the last two years; and
- (d) if so, the details and outcome thereof and if not, the reasons therefor?

## Answer

The Minister of State in the Ministry of Finance (Shri Santosh Kumar Gangwar)

- (a)  and  (b):    Statement  showing  State-wise  number  of  Kisan  Credit  Cards  (KCCs)  issued  and  loan amount  outstanding  during  the  last  three  years  under  KCC  in  respect  of  Cooperative  Banks  and Regional Rural Banks (RRBs) furnished by NABARD is attached at Annexure I. Statement showing the details  of  KCCs  issued  and  loan  amount  outstanding  during  the  last  three  years  in  respect  of Commercial banks furnished by Reserve Bank of India (RBI) are attached at Annexure II & III.
- (c)  and  (d):  No  scheme for waiver of farm loans has  been implemented by the Central Government during  the  last  two  years.  However,  to  reduce  the  debt  burden  of  the  farmers,  the  following  major initiatives have been taken:
-  With  a  view  to  ensure  availability  of  agriculture  credit  at  a  reduced  interest  rate  of  7%  p.a.  to farmers, the Government of India in the Department of Agriculture, Cooperation & Farmers' Welfare implements an interest subvention scheme for short term crop loans up to Rs. 3.00 lakh. Under the said scheme, additional subvention of 3% is given to those farmers who repay their short term crop loan in time, thereby reducing the effective rate of interest to 4% p.a. for such farmers.
-  Reserve Bank of India (RBI) has issued master directions on relief measures to be provided by lending institutions in areas affected by natural calamities including drought which, inter alia, include identification  of  beneficiaries,  extending  fresh  loans  and  restructuring  of  existing  loans,  relaxed security  and  margin  norms,  moratorium,  etc.    The  benchmark  for  restructuring  of  loans  has  been reduced from 50% to 33% crop loss, in line with the National Disaster Management Framework. In addition, as per the Priority Sector Lending Guidelines issued by RBI, loans to distressed farmers to repay non-institutional lenders, are eligible under priority sector.
-  Pradhan  Mantri  Fasal  Bima  Yojana  (PMFBY)  provides  a  comprehensive  insurance  cover against failure of insured crops due to non-preventable natural risks, thus providing financial support to  farmers  suffering  crop  loss/  damage  arising  out  of  unforeseen  events;  stabilizing  the  income  of farmers  to  ensure  their  continuance  in  farming;  and  encouraging  them  to  adopt  innovative  and modern agricultural practices.
-  Post demonetisation, Government has taken the following relief measures for the farmers in the cooperative sector:
- (i)   An additional grace period of 60 days for prompt repayment incentive @ 3% was provided to such farmers whose crop loans dues fell due between 01/11/2016 to 31/12/2016 and if such farmers repaid the same within 60 days from their due date in this period.
- (ii)   Interest waiver for two months (November and December, 2016) for all short term crop loan s availed from Cooperative Banks between 01.04.2016 to 30.09.2016 and upfront deposit of the same in the accounts of the concerned farmers.
- (iii)   National  Bank  For  Agriculture  And  Rural  Development  (NABARD)  raised  short  term borrowings from the market at prevailing market rate of interest for ₹ 17,880.78 crore and disbursed the same under refinance for on-lending to Cooperative Banks at 4.5% rate of interest during 2016-17.