Lok Sabha Question No. 123 (UNSTARRED), answered on 2022-07-18
Subject: KCC Holders in Rajasthan
Ministry: FINANCE
Asked by: Sumedhanand Saraswati

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

## LOK SABHA Unstarred Question No. {123 Answered on Monday, July 18,2022/Ashadha 27,1944 (Saka)

## KCC HOLDERS IN RAJASTHAN

## 123. SHRI SUMEDHANAND SARASWATI:

Will the Minister of FINANCE be pleased to state:

- (a) the details of loans given to Kisan Credit Card (KCC) holders in Rajasthan during each of the last three years;
- (b) whether the loan amount for KCC holders has been increased in view of the rise in expenditure of farmers;
- (c) if so, the details thereof;
- (d) whether the farmers can also deposit only interest incurred on loan against his KCC in the bank every year;
- (e) ifnot; whether the Government proposes to make such arrangement and if s0, the details thereof; and
- 'f) whether the Government believes that this arrangement is likely to enable farmers to pay back the loans against their KCCs in the bank on time and also be free from the clutches of money lenders and if so, the details thereof?

## Answer

## THE MINISTER OF STATE IN THE MINISTR Y OF FNNANCE (DR. BHAGWAT KARAD)

- (a): As per the information furnished by Reserve Bank of India (RBI) and National Bank for Agriculture and Rural Development (NABARD), details of number of operative KCCs and amount outstanding for the State of Rajasthan during the last three financial years is as below:

| Year    | No_of_operative KCCs   | Amount Outstanding_in RsCrores   |
|---------|------------------------|----------------------------------|
| 2019-20 | 57,27,000              | 81,231                           |
| 2020-21 | 66,15,000              | 84,637                           |
| 2021-22 | 62,15,979              | 94,693                           |

(6) & (c): 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 Sth 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, five years. i,e ,

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

(d) to (f): The issue of renewal of KCC on the basis of interest payment only has been reviewed by RBI and have apprised that payment of both interest and principal is required for such renewals As per extant instructions issued by Dlo Agriculture & Farmers Welfare for continuation of Modified Interest Subvention Scheme, short term crop loan upto Rs. 3 lakh is provided to farmers at 7% per annum: Also, additional interest subvention of 3% per annum is provided to farmers making timely repayment; thereby, reducing effective rate of interest to 4% per annum. This facility is also available to farmers engaged in Animal Husbandry & Fisheries farmers for working loan upto Rs: 2 lakh: they capital