Cash credit at 7 per cent interest, a single-window system, cash-for-produce guarantee and an insurance cover — all these facilities are provided by a bank in Uttarakhand, only for farmers. After experiencing the plight of farmers during his nation-wide yatra last year, Anil Prakash Joshi, a social activist, has launched the Kisan Bank with state Agriculture Minister Trivendra Singh Rawat pledging full government’s support.
The bank, which will begin operation from 10 branches in the Garhwal region, has already enrolled nearly 500 farmers as its members with a nominal deposit of Rs 50 each.
There will be a common facility centre and a separate knowledge bank for farmers.
The hallmark of the bank is that any financial support lent to the farmers will be returned not in the form of cash but also in the form of their produce. “This will save farmers from getting trapped into the vicious market circle,” said Joshi.
The Kisan Bank has tied up with the Uttarakhand Gramin Bank (UGB), which is ready to provide cash credit to farmer at 7 per cent interest rates. “We will provide kisan credit cards to all farmers of Kisan Bank at 7 per cent interest, which is 5 per cent lower than the market rate,” said UGB Chairman Threesh Kapoor.
The bank has also roped in top companies like Mahyco Seed Ltd to provide seeds to farmers at a minimum profit, said Joshi.
The bank will realise its interest by selling farm produce in open market or any other better mechanism.