Never miss a great news story!
Get instant notifications from Economic Times
AllowNot now

You can switch off notifications anytime using browser settings.
Stock Analysis, IPO, Mutual Funds, Bonds & More

Soon, special drive to double Kisan Credit Cards to 14 crore

The aim is to issue KCCs to eligible farmers within two weeks of submission of application forms.

, TNN|
Updated: Feb 11, 2019, 10.55 AM IST
Representative Image
New Delhi: Seeking to bring all landholding cultivators within the institutional credit system, the Centre is set to launch a special drive to reach out to all farmers with Kisan Credit Cards (KCCs) by doubling its footprint from 6.95 crore to around 14 crore active cards ahead of general elections.

The aim is to issue KCCs to eligible farmers within two weeks of submission of application forms.

The Indian Banks Association issued an advisory to all banks last week asking them to waive processing, documentation, inspection, ledger folio charges and all other service charges for KCC and crop loans up to Rs 3 lakh — a move which may save a farmer applying for KCC Rs 2,000 to Rs 5,000.

“The agriculture ministry has written to all states and UTs seeking their cooperation . Idea is to saturate farmers with KCCs so that they can access institutional credit and avail interest subvention,” agriculture secretary Sanjay Agarwal said.

“Decision to waive off various service charges is a good move. It’ll save Rs 2,000 to Rs 5,000 of an applicant if adopted by banks. Complexities involved in it force farmers to even hire lawyers to approach banks for KCC,” said Sudhir Panwar, president of Kisan Jagriti Manch, which works among farmers in UP.

“Credit is provided to farmers to purchase inputs. Interest is, however, not linked to inflation. So, even 4% interest is too high for them,” said Panwar, arguing that if government waives off interest on crop loan completely, there will never be demand of loan waiver.

Also Read

Budget 2018: Kisan Credit Card to dairy, fisheries

Rupay Kisan Credit Card Scheme to start from July 12

Kisan credit cards to double up as debit cards

Give farmers easy access to Kisan Credit Card scheme: Finance ministry

Add Your Comments
Commenting feature is disabled in your country/region.
Download The Economic Times Business News App for Live Elections News & Results, Latest News in Business, Share Market & More.

Other useful Links

Follow us on

Download et app

Copyright © 2019 Bennett, Coleman & Co. Ltd. All rights reserved. For reprint rights: Times Syndication Service