Comprehensive Study of Kisan Credit Card at Central Bank of India-A Useful Credit Tool for Rural Development

The KCC is pioneering credit delivery innovative products which provide a adequate and timely credit to farmers' thorough single window, with flexible and simplified procedure, adopting whole farm approach, including the short-term credit, medium term and long term credit needs of the borrowers for agriculture and allied activities and a reasonable component for consumption needs. The Government of India introduced KCC scheme by banks during 1998-1999. It was designed by NABARD. KCC aims at adequate and timely support from the banking system to the farmers for their short-term production credit needs in cultivation of crops, purchase of inputs etc in a flexible and as well as cost effective manner. Under this scheme, the appliers would be issued a credit card-cum pass book incorporating the name, address, particulars of land holding, borrowing limit, validity period etc and it will serve both as an identity card as well as facilitates the financial transactions. Credit limit of the card may be fixed on the basis of operational holding, cropping pattern and scale of finance as recommended by the DLTC&SLTC. As per the recommendations of Sri R.V. Gupta committee in the year 1998, on the flow of credit to agricultural sector, apart from the total credit need, a 20 per cent of total peak level credit requirement (PLCR) there is provision of contingent credit need (with a minimum ceiling of Rs.20,000). Normally The KCC should valid up to 5 years and subject to annual review. The KCC will be considered as a nonperforming asset (NPA) if it remains inoperative for a period of two successive crop seasons.