Managalore-based private sector lender Karnataka Bank on Thursday said it has introduced the revised guidelines of the Reserve Bank of India (RBI) on Kisan Credit Card (KCC) scheme.
As per the new scheme, which is effective from November 15, farmers can avail working capital loan in the form of overdraft for raising various crops and maintaining their farm equipments and also term loan for meeting their investment credit requirements.
The bank also has revised the scheme period from two years to five years.
“The farmers have an option to renew the overdraft every year with 10% increase in limit,” the bank official said.
The ovedraft facility is more useful to farmers as it is an operative account and they can credit the sale proceeds of various crops to the account and utilise it when required, it added.
Karnataka bank has also planned to introduce ATM card enabled transaction to the farmers under the KCC scheme as per the RBI guidelines.
The bank is targeting to disburse Rs 1,000 crore in agriculture sector during the current fiscal year and KCC scheme is one of the important channels for disbursing the agriculture credit. The lender also said that as on date, it has issued 17,791 Kisan Credit Cards to farmers with an aggregate amount of Rs 202.21 crore.
