"All KCCs will be converted to ATM cards. I have impressed upon all chairpersons of the banks that this time-line must be strictly adhered to," Chidambaram said following a meeting with the chief executives of state-run banks.
State-owned lenders were asked to convert more than 11.39 crore KCCs to ATM cards within two years starting from April 1, 2012.
"We will monitor it every quarter. All KCCs must be converted and will be converted to ATM cards," he said.
As per NABARD, as on March 31, 2012, the banking system has issued 11.39 crore KCCs and sanctioned loans to the tune of Rs 5,21,617 crore since the inception of the scheme in 1998-99.
The Finance Ministry has also asked banks to issue KCC to all eligible farmers.
On opening of new branches, Chidambaram said banks plans to open 3,955 branches in the current fiscal.
"In terms of banks branches, in 2011-12, we opened 4,931 branches. Of these 1,098 were in minority concentrated districts. This year the plan is to open 3,955 branches," Chidambaram said.