Kotwars in MP to get Kisan credit cards

Kotwars, the lowest rank revenue staff, will also be included under the Kisan family in Madhya Pradesh. as bankers are falling short of their targets to distribute Kisan Credit cards to farmers.

To meet the target they have decided to include Kotwars under the Kisan category. Therefore, kotwars will also be offered Kisan credit cards.

"There are 22,500 kotwars in Madhya Pradesh. Each has a government land holding of 2.5 acres, which has passed on to their next generation. They now will be offered Kisan credit cards by all banks," said Ashok Barnwal, director finance department.

A kotwar will not have to produce title deed of the land since it remains in possession of the government. There are certain criteria for other Kisan to be eligible for Kisan credit card.

However, bank insiders told Business Standard, "Kotwars have been included to meet the target because the state is facing problem."

The state has more than 70 lakh farmers in the state. Of them, only 40,16,700 farmers have been given the Kisan credit cards (KCC). During the year 2006-07, the bankers have distributed only 4,39,187 KCCs.

They have been give 100 per cent KCC coverage in Madhya Pradesh. The state has set the target of covering 100 per cent farmers under the KCC scheme, a banker told BS.

Speaking to Business Standard, K Subbaraman who recently chaired a state level bankers committee meet told BS, "I suggested the bankers that all the districts of Madhya Pradesh should be given 100 per cent coverage under KCC during the year to declare the state as first in India with 100 per cent coverage under this scheme. Kotwars will also be included under the scheme."

The Centre in consultation with the RBI (Reserve Bank of India) and NABARD (National Bank for Agricultural and Rural Development) introduced the KCC scheme in 1998-99.

The scheme, introduced as a credit delivery mechanism for crop loans, now also covers term loans for agriculture and allied activities. So far, commercial banks have sanctioned 796,833 kisan credit cards (155,056 in 2006-07), regional rural banks 332,716 (73436), and cooperative banks 2794409 (131875).