Nabard Kisan Credit Card Next Month

Nine months after the announcement at the union budget, the apex agriculture and rural bank, Nabard, is close to finalising its kisan credit card (KCC) scheme. According to sources, the KCC may become operational in the next one month.

The KCC was formulated with a view to improve credit delivery for agriculture-related activities. Initially, the facility will be available for credit requirements such as purchase of seeds, fertilisers, insecticides and other cropping activities. Subsequently, the card will be allowed in allied activities and also for non-farm credit.

According to Nabard sources, a circular has been issued to regional rural banks (RRBs) and co-operative banks. The Reserve Bank of India has also sent a similar circular to commercial banks. RRBs, co-operative banks and commercial banks will issue the KCC.

 

Under the scheme, eligible farmers will be given revolving cash credit facility with any number of drawals and repayments within the credit limit fixed by the bank.

The credit limit will be fixed after considering the total production credit requirements for the full year and ancillary activities.

The other parameters will be operational land holding, cropping pattern and scale of finance. Also, there will be sub-limits which would be fixed by the issuing banks.

While each drawals will be required to be repaid within 12 months, conversions and rescheduling will be allowed in the case of crop damage due to natural calamities. As an incentive for good performance the credit limit will be increased to buffer any increase in costs or changes in cropping pattern.

Nabard sources attribute the delay in the launch to the lack of decision-making within the organisation. Nabard has been without a chairman for the last six months.