Lok Sabha Question No. 2386 (UNSTARRED), answered on 2024-08-06
Subject: Issue of KCC to Farmers
Ministry: AGRICULTURE AND FARMERS WELFARE
Asked by: Shri Navaskani K, Dr. Thirumaavalavan Tholkappiyan

## GOVERNMENT OF INDIA MINISTRY OF AGRICULTURE AND FARMERS WELFARE

## DEPARTMENT OF AGRICULTURE AND FARMERS WELFARE

## LOK SABHA UNSTARRED QUESTION NO. 2386

TO BE ANSWERED ON 06 TH  AUGUST, 2024

## ISSUE OF KCC TO FARMERS

2386.  SHRI NAVASKANI K: DR. THIRUMAAVALAVAN THOLKAPPIYAN:

Will the Minister of AGRICULTURE AND FARMERS WELFARE कृ ͪष और ͩकसान कãयाण मंğी be pleased to state:

- (a) the details of Kisan Credit Cards (KCCs) issued to farmers in the country including Tamil Nadu;
- (b) whether the Government is considering to provide more Kisan Credit Cards (KCCs) to the farmers and if so, the details thereof;
- (c) whether the Government is considering interest free loan to be disbursed through KCCs and if so, the details of the same;
- (d) whether a large number of farmers in the country do not have Kisan Credit Cards and if so, the details thereof and the reasons therefor;
- (e) whether the banks do not take keen interest towards issuing credit cards to the farmers and if so, the directives issued by the Government to banks in this regard; and
- (f) whether the Government will consider providing Kisan  Credit  Cards  to all the eligible farmers in a time bound manner and if so, the details thereof?

## ANSWER

## MINISTER OF STATE FOR AGRICULTURE AND FARMERS WELFARE

कृ ͪष एवं ͩकसान कãयाण राÏय मंğी (SHRI RAMNATH THAKUR)

- (a)  to (d): Details of operative Kisan Credit Card (KCC) as on 31.03.2024 in the country and in the state of Tamil Nadu is as under: -

| States/UTs                        | Number of Operative Accounts   |
|-----------------------------------|--------------------------------|
| All States and UTs of the country | 7,75,04,234                    |
| Tamil Nadu                        | 40,31,906                      |

Source: RBI and NABARD

The  Kisan  Credit  Cards  (KCC)  are  provided  to  all  the willing farmers  as  per  their eligibility. The  credit  limit/  loan  amount  under  KCCs  is  fixed  by  Banks  as  per  guidelines prescribed in the Master Circular dated 4 th  July, 2018 issued by Reserve Bank of India (RBI). It is determined on the basis of various parameters viz. scale of finance for the crop (as decided by District Level Technical Committee), extent of area cultivated, postharvest/household/consumption requirements, repairs & maintenance expenses of farm assets and different insurance components, etc.

The government is implementing a 100% centrally funded Central Sector Scheme known as the Modified Interest Subvention Scheme (MISS). This scheme aims to provide concessional interest rates on short-term agricultural loans obtained by farmers through Kisan Credit Cards (KCC) for their working capital requirements. Under this scheme, farmers receive KCC loans at a subsidized interest rate of 7%. To facilitate this, an interest subvention (IS) of 1.5% is provided to  financial  institutions.  Additionally,  farmers  who  repay  their  loans  promptly  receive  a  3% Prompt Repayment Incentive (PRI), effectively reducing the interest rate to 4% per annum. The benefits of IS and PRI are available for loan limits up to Rs. 3 lakhs. In the year 2018-19, the Government  of  India  (GoI)  expanded  the  KCC  scheme  to  include  Animal  Husbandry  and Fisheries. This extension was introduced to provide short-term working capital loans to farmers involved in these sectors. However, if the short-term loan is taken for allied activities (other than crop husbandry), the loan amount is limited to Rs. 2 lakhs only.

(e): The Govt.  announces  annual  target  of  agriculture  credit  .  Further  RBI  issues  Priority Sector Lending (PSL) guidelines, for ensuring required credit flows to priority areas and as per the said guidelines, 18% of loans must go to agriculture sector making a further sub-limit of 10% reserved for small and marginal farmers annual credit target to be allocated to the agriculture sector. Reserve Bank of India issues master circular on implementation of KCC scheme followed by more instructions from time to time. This Government and Banks are actively involved in the promotion of KCC scheme with a view to provide easy access to institutional credit to farmer.

(f): The Government has taken various initiatives and organized campaigns from time to time to increase the coverage of KCC. One of the significant steps was the launch of the Rupay KCC scheme in 2012. This scheme aims to provide adequate and timely credit support from the banking system under a single window with a flexible and simplified procedure for farmers to meet their cultivation and other short-term needs. Further exclusive campaigns such as Kisan Bhagidari  Prathmikta  Humari,  Ghar  Ghar  KCC  Abhiyaan  were  launched  to  increase  the coverage of KCC. This has also been taken up under various other campaigns such as PM JANMAN, and Viksit Bharat Sankalp Yatra etc.

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