Lok Sabha Question No. 3322 (UNSTARRED), answered on 2019-01-01
Subject: Kisan Credit Cards
Ministry: AGRICULTURE AND FARMERS WELFARE
Asked by: BHAGWANTH KHUBA

## GOVERNMENT OF INDIA MINISTRY OF AGRICULTURE AND FARMERS WELFARE DEPARTMENT OF AGRICULTURE, COOPERATION AND FARMERS WELFARE

## LOK  SABHA

## UNSTARRED QUESTION NO.3322

TO BE ANSWERED ON THE 1 ST  JANUARY, 2019

## KISAN CREDIT CARDS

3322.      SHRI  BHAGWANTH KHUBA:

Will the Minister of AGRICULTURE AND FARMERS WELFARE कृ ष एवं कसान कयाण मंी be pleased to state:

- (a) whether  the  Government  issues any  credit  card  for  small  farmers  in  the country;
- (b) if so, the details thereof;
- (c) whether the Government plans to issue Kisan Credit Cards without interests to improve the life of the farmers; and
- (d) if so, the details thereof?

## ANSWER

MINISTER OF STATE IN THE MINISTRY OF AGRICULTURE AND FARMERS WELFARE

कृ ष एवं कसान कयाण मंालय म राय मंी (SHRI  PARSHOTTAM  RUPALA)

- (a) & (b): Yes, Madam. The Kisan Credit Card (KCC) Scheme which is in operation since August  1998,  aims  to  provide  adequate  and  timely  credit  support  from  the  banking  system under a single window to the farmers including small farmers for their cultivation & other needs including  consumption  and  investment.  The  scheme  is  implemented  through  Scheduled Commercial Banks, Private Banks, Regional Rural Banks and Cooperative Banks.

As per the revised guidelines for KCC Scheme in 2012, the tenant farmers, oral lessees or share croppers are covered under the Scheme. The revised Scheme provides for sanction of the  credit  limit  for  5  years  with  simplified  renewal  every  year.  The  issue  of  smart-cum  debit card,  mandated  under  the  revised  guidelines,  has  enabled    the  farmers  to  access  multiple delivery channels.

With a view to facilitate financial transactions by farmers on digital platform, Government has decided to convert the KCCs to RuPayKCCs in a time bound manner. The conversion of operative/live  KCCs  into  RuPay/ATM-enabled  KCCs  has  enabled  easy  and  hassle  free availability of credit to farmers and is likely to reduce the interest liability as it would encourage need based drawl of credit. As on 30.09.2018, a total number of 5.44 crore KCCs have been converted to RuPayKCCs.

(c) & (d): With  a  view  to  ensuring  availability  of  agriculture  credit,  including  loans  taken against   KCC,    at   a  concessional   interest rate  to  farmers, the Government is implementing

Interest  Subvention  Scheme  (ISS)  under  which  short  term  crop  loans  upto  Rs.  3.00  lakh  is provided to farmers at subvented interest rate of 7% per annum.  Currently, besides 2% interest subvention, 3 percent incentive is  given for prompt repayment of loan thereby reducing the cost of loan to 4% per annum.

Further, to prevent distress sale of produce, the benefit of interest subvention is extended for  a  period  of  up  to  six  months  (post-  harvest)  to  small  and  marginal  farmers  having  Kisan Credit Card on loan against negotiable warehouse receipts.

In addition to interest subvention provided by Government of India under ISS, some State Governments also provide interest subsidy to make available short term crop loans to farmers at zero rate of interest.

In view of above, the Government at present is not considering any  proposal to provide interest free loans to farmers.

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