Lok Sabha Question No. 3500 (UNSTARRED), answered on 2019-07-15
Subject: Kisan Credit Card
Ministry: FINANCE
Asked by: Dhanush M Kumar, Jaswantsinh Sumanbhai Bhabhor

## Government of India Ministry of Finance

## LOK SABHA UNSTARRED QUESTION NO. 3500

ANSWERED ON-15.07.2019 (Monday)/Ashadha, 24, 1941 (Saka)

## KISAN CREDIT CARD

## 3500. SHRI DHANUSH M. KUMAR: SHRI JASWANT SINGH BHABHOR:

Will the Minister of FINANCE be pleased to state:

- (a) the number of small and marginal farmers who are eligible to avail the benefit under Kisan Credit Card (KCC) scheme along with the amount of loan given to the total number of farmers under the KCC scheme in the country during each of the last three years, State-wise including Gujarat and Tamil Nadu;
- (b)  whether  the  Government  has  taken  any  step  to  spread  awareness  among  small  and  marginal farmers regarding the above said scheme in the country including Tamil Nadu;
- (c) the number of loans under the KCC scheme which are higher than Rupees three lakh; and
- (d) whether the Government proposes to increase the amount of loan fixed to be provided to Kisan Credit Card holders under the KCC scheme keeping in mind the increasing expenses of the farmers and if so, the details thereof and if not, the reasons therefor?

## ANSWER

## THE MINISTER OF STATE IN THE MINISTRY OF FINANCE (SHRI ANURAG THAKUR)

(a) to (d) State-wise details of number of Kisan Credit Cards (KCCs) issued and amount sanctioned by Regional Rural Banks (RRBs) and Cooperative Banks, during the last three years, as reported by National Bank for Agriculture and Rural Development (NABARD), are given at Annexure I. Statewise details of number of operative KCCs and loans outstanding during the years 2016-17, 2017-18 and  2018-19,  in  respect  of  Public  and  Private  Sector  Banks,  as  reported  by  RBI,  are  given  at Annexure II.

As reported by RBI and NABARD, segregated information regarding loans above rupees three lakh sanctioned under KCC, is not centrally maintained.

As per Reserve Bank of India (RBI) extant directions on Priority  Sector  Lending  (PSL),  Domestic Scheduled Commercial Banks are required to lend 18% of the Adjusted Net Bank Credit (ANBC) or Credit Equivalent to Off-Balance Sheet Exposure (CEOBE), whichever is higher, towards agriculture. A sub-target of 8% is also prescribed for lending to small and marginal farmers including landless agricultural  labourers,  tenant  farmers,  oral  lessees  and  share  croppers.  Similarly,  in  the  case  of Regional Rural Banks 18% of their total outstanding advances is required to be towards agriculture and a sub-target of 8% has been set for lending to small and marginal farmers.

The percentage share of small and marginal farmers under agriculture credit disbursement for the last 3 years as reported by NABARD is as under:

| Years                 | Number of Accounts   | Amount   |
|-----------------------|----------------------|----------|
| 2016-17               | 72.1%                | 50.1%    |
| 2017-18               | 74.7%                | 49.9%    |
| 2018-19 (provisional) | 74.3%                | 49.9%    |

Under the KCC Scheme, a flexible limit of ` 10,000 to ` 50,000 has been provided to marginal farmers (as Flexi KCC) based on the land holding and crops grown including post harvest warehouse storage related  credit  needs  and  other  farm  expenses,  consumption  needs,  etc.,  plus  small  term  loan investments without relating it to the value of land.

To enhance coverage of small and marginal farmers in the formal credit system, RBI has decided to raise the limit for collateral-free agriculture loans from ` 1 lakh to ` 1.6 lakh.

The requirement of 'no due' certificate has also been dispensed with for small loans up to ` 50,000 to small and marginal farmers, share-croppers and the like and, instead, only a self-declaration from the borrower is required.

To bring small, marginal, tenant farmers, oral lessees, etc. into the fold of institutional credit, Joint Liability Groups (JLGs) have been promoted by banks.

The  KCC  scheme  has  since  been  simplified  and  provides  for  issue  of  ATM  enabled  RuPay  Debit Card,  inter  alia,  with  facilities  of  one-time  documentation,  built-in  cost  escalation  in  the  limit,  any number of drawals within the limit, etc.

The credit limit/ loan amount under KCCs is fixed by Banks as per guidelines prescribed in the Master Circular dated July 4, 2018 issued by RBI. The short term credit limit under KCC for the first year is determined based on Scale of Finance for the crop (as decided by District Level Technical Committee) x Extent of area cultivated + 10% of limit towards post-harvest/household/ consumption requirements +  20%  of  limit  towards  repairs  and  maintenance  expenses  of  farm  assets  +  crop  insurance  and/or accident insurance including personal accidental insurance scheme (PAIS), health insurance & asset insurance. The limit for second and subsequent years (3rd, 4th and 5th year) is arrived based on first year limit for crop cultivation purpose plus 10% of the limit towards cost escalation / increase in scale of finance and estimated term loan component for the tenure of KCC, i.e., five years.

The short term loan limit arrived for the 5th year plus the estimated long term loan requirement will be the Maximum Permissible Limit (MPL) and is to be treated as the Kisan Credit Card limit.

*******

## Anneuxre I to Lok Sabha USQ 3500 for 15.07.2019

Statement of KCC - issued and Amount sanctioned during last three years in respect of Cooperative Banks and RRBs.

(No. in absolute, Amount in ` crore)

| Sr. No.   | State/UT          | 2016-17      | 2016-17         | 2017-18      | 2017-18         | 2018-19 (February 2019)   | 2018-19 (February 2019)   |
|-----------|-------------------|--------------|-----------------|--------------|-----------------|---------------------------|---------------------------|
|           | State/UT          | Cards issued | Amt. Sanctioned | Cards issued | Amt. Sanctioned | Cards issued              | Amt. Sanctioned           |
| 1         | Andhra Pradesh    | 176852       | 1079.27         | 175720       | 1462.58         | 209895                    | 2358.95                   |
| 2         | A &Nisland        | 212          | 0.08            | 147          | 0.42            | 275                       | 1.78                      |
| 3         | Arunachal Pradesh | 56           | 0.74            | 0            | 0.00            | 275                       | 3.02                      |
| 4         | Assam             | 58321        | 295.61          | 108067       | 418.99          | 12060                     | 79.44                     |
| 5         | Bihar             | 145160       | 684.67          | 58205        | 349.02          | 33665                     | 251.36                    |
| 6         | Chhattisgarh      | 55957        | 1309.54         | 19127        | 59.61           | 8994                      | 75.94                     |
| 7         | D &NHaveli        | 0            | 0.00            | 0            | 0.00            | 0                         | 0.00                      |
| 8         | Daman &Diu        | 0            | 0.00            | 0            | 0.00            | 0                         | 0.00                      |
| 9         | Goa               | 949          | 0.87            | 118          | 1.30            | 169                       | 2.84                      |
| 10        | Gujarat           | 67977        | 714.75          | 50753        | 678.56          | 78556                     | 1056.12                   |
| 11        | Haryana           | 37148        | 909.64          | 41003        | 1142.81         | 38691                     | 1003.80                   |
| 12        | Himachal Pradesh  | 15131        | 218.73          | 17931        | 685.23          | 17356                     | 381.46                    |
| 13        | Jammu& Kashmir    | 3987         | 21.03           | 7289         | 71.57           | 5754                      | 66.14                     |
| 14        | Jharkhand         | 37788        | 90.68           | 75137        | 286.42          | 72857                     | 330.15                    |
| 15        | Karnataka         | 508324       | 7618.10         | 347982       | 2892.38         | 332662                    | 1775.12                   |
| 16        | Kerala            | 196859       | 1205.65         | 152013       | 1108.78         | 153489                    | 1303.81                   |
| 17        | Lakshdweep        | 0            | 0.00            | 0            | 0.00            | 0                         | 0.00                      |
| 18        | Madhya Pradesh    | 196858       | 491.60          | 467558       | 1454.72         | 44569                     | 704.82                    |
| 19        | Maharashtra       | 210846       | 468.27          | 101737       | 223.36          | 104466                    | 585.30                    |
| 20        | Manipur           | 1980         | 6.10            | 4120         | 10.62           | 3600                      | 7.88                      |
| 21        | Meghalaya         | 3123         | 14.43           | 1338         | 6.57            | 1960                      | 15.47                     |
| 22        | Mizoram           | 3660         | 18.27           | 4388         | 28.80           | 1818                      | 12.26                     |
| 23        | Nagaland          | 680          | 1.73            | 0            | 0.00            | 130                       | 0.46                      |
| 24        | New Delhi         | 135          | 2.36            | 98           | 1.99            | 41                        | 0.82                      |
| 25        | Orissa            | 118705       | 3836.82         | 93600        | 1897.92         | 139199                    | 634.33                    |
| 26        | Puducherry        | 327          | 2.93            | 104          | 0.98            | 478                       | 4.80                      |
| 27        | Punjab            | 29618        | 506.48          | 14265        | 430.97          | 46500                     | 456.24                    |
| 28        | Rajasthan         | 264045       | 5273.71         | 221792       | 2617.95         | 164271                    | 1813.50                   |
| 29        | Sikkim            | 72           | 0.20            | 95           | 0.22            | 0                         | 0.00                      |
| 30        | Tamil Nadu        | 206270       | 2008.02         | 123730       | 964.16          | 277493                    | 1790.05                   |
| 31        | Telangana         | 158947       | 423.87          | 141884       | 673.62          | 190119                    | 957.59                    |
| 32        | Tripura           | 5471         | 9.25            | 24268        | 82.97           | 18271                     | 69.16                     |
| 33        | Uttar Pradesh     | 454233       | 4438.46         | 559816       | 6287.75         | 549276                    | 6113.16                   |
| 34        | Uttarakhand       | 6055         | 246.87          | 2713         | 14.12           | 24944                     | 107.28                    |
| 35        | West Bengal       | 52670        | 158.99          | 81014        | 157.21          | 185314                    | 247.00                    |
|           | TOTAL             | 3018416      | 32057.70        | 2896012      | 24011.60        | 2717147                   | 22210.04                  |

Source: NABARD

## Anneuxre II to Lok Sabha USQ 3500 for 15.07.2019

## Statement of KCC - issued and Amount sanctioned during last three years in respect of Public

## and Private Sector Banks

(No. in Actual & Amount in Rupees lakh)

| Sr. No.   | State               | 2016-17        | 2016-17            | 2017-18        | 2017-18            | 2018-19        | 2018-19            |
|-----------|---------------------|----------------|--------------------|----------------|--------------------|----------------|--------------------|
|           |                     | Operative KCCs | Amount Outstanding | Operative KCCs | Amount Outstanding | Operative KCCs | Amount Outstanding |
| 1         | A &Nisland          | 432            | 298.19             | 288            | 288.35             | 4064           | 4947.41            |
| 2         | Andhra Pradesh      | 1753878        | 2299666.74         | 1874715        | 2429494.78         | 1960407        | 2712829.15         |
| 3         | Arunachal Pradesh   | 8574           | 5488.67            | 8779           | 5843.66            | 57124          | 29104.42           |
| 4         | Assam               | 496801         | 312670.28          | 583215         | 385377.72          | 643330         | 446995.37          |
| 5         | Bihar               | 1443624        | 1111440.81         | 1321843        | 1047704.56         | 1107120        | 962659.84          |
| 6         | Chandigarh          | 10484          | 54361.30           | 3536           | 27354.28           | 7561           | 39541.42           |
| 7         | Chattisgarh         | 219235         | 425922.65          | 228163         | 457898.81          | 222188         | 483305.52          |
| 8         | Dadra &Nagar Haveli | 527            | 1556.98            | 535            | 1428.56            | 445            | 693.60             |
| 9         | Daman &Diu          | 314            | 773.06             | 391            | 970.69             | 393            | 959.29             |
| 10        | Delhi               | 4893           | 27650.61           | 3277           | 26089.69           | 3346           | 9166.46            |
| 11        | Goa                 | 7212           | 18358.77           | 6959           | 17538.60           | 13112          | 30322.23           |
| 12        | Gujarat             | 1070354        | 2664767.11         | 1085847        | 2957906.02         | 1102994        | 3112755.61         |
| 13        | Haryana             | 654854         | 2669983.61         | 676683         | 2814466.62         | 669993         | 2759675.34         |
| 14        | Himachal Pradesh    | 208895         | 346884.59          | 213124         | 364048.89          | 175421         | 326032.35          |
| 15        | Jammu& Kashmir      | 274609         | 350375.46          | 299552         | 383236.56          | 330476         | 418027.03          |
| 16        | Jharkhand           | 642314         | 275237.32          | 600314         | 282125.03          | 596937         | 306726.19          |
| 17        | Karnataka           | 932400         | 2849586.25         | 893415         | 2412133.33         | 849921         | 2331345.76         |
| 18        | Kerala              | 311424         | 1196089.65         | 310145         | 1211695.16         | 311868         | 1308674.13         |
| 19        | Lakshadweep         | 508            | 243.63             | 488            | 240.27             | 43571          | 84826.84           |
| 20        | Madhya Pradesh      | 1640177        | 3437332.64         | 1642945        | 3818073.20         | 1628594        | 4056616.65         |
| 21        | Maharashtra         | 2446364        | 3809879.40         | 2203906        | 3310354.73         | 2126422        | 3550037.88         |
| 22        | Manipur             | 14988          | 11381.51           | 15621          | 11824.50           | 13422          | 10860.36           |
| 23        | Meghalaya           | 56598          | 30797.01           | 54261          | 37780.17           | 51311          | 33929.51           |
| 24        | Mizoram             | 12395          | 8366.76            | 10550          | 7699.05            | 9380           | 7388.92            |
| 25        | Nagaland            | 32758          | 15925.74           | 28311          | 14078.83           | 110716         | 57653.60           |
| 26        | Orissa              | 602490         | 449437.05          | 654844         | 485021.01          | 570404         | 466905.99          |
| 27        | Puducherry          | 15499          | 58847.91           | 4394           | 14718.28           | 26819          | 84088.39           |
| 28        | Punjab              | 862228         | 4917378.61         | 871631         | 4880757.23         | 901242         | 4704885.48         |
| 29        | Rajasthan           | 2000765        | 5044590.25         | 2039917        | 5381633.75         | 1969220        | 5555757.01         |
| 30        | Sikkim              | 4664           | 4771.64            | 4809           | 3405.65            | 11319          | 13955.97           |
| 31        | Tamil Nadu          | 506183         | 1341306.83         | 544252         | 1572608.71         | 550332         | 1672988.11         |
| 32        | Telangana           | 1356409        | 1938726.96         | 1796333        | 1770608.54         | 1765180        | 1862082.69         |
| 33        | Tripura             | 45739          | 26058.42           | 79193          | 42814.76           | 84542          | 60397.89           |
| 34        | Uttarakhand         | 389100         | 641787.33          | 236329         | 476288.04          | 266612         | 540881.71          |
| 35        | Uttar Pradesh       | 4450262        | 6454175.58         | 4225532        | 5921402.19         | 4492539        | 6743961.60         |
| 36        | West Bengal         | 822998         | 533069.79          | 1004036        | 736448.25          | 954056         | 716914.26          |
|           | Total               | 23300949       | 43335189.11        | 23528133       | 43311358.47        | 23632381       | 45507893.96        |

Source: RBI