Kisan Credit Card (KCC) and Crop Loaning System. Sushrut V. Sardesai DGM / MoF CAB, RBI, Pune. Salient features of the KCC Scheme. Farmers to be provided with a KCC and a pass book or card-cum-pass book. Revolving cash credit facility.
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Sushrut V. Sardesai
DGM / MoF
CAB, RBI, Pune
Farmers to be provided with a KCC and a pass book or card-cum-pass book.
Revolving cash credit facility.
Limit on the basis of operational land holding, cropping pattern and scale of finance.
Limit for entire production credit needs for full year plus ancillary activities related to crop production.
Card valid for 3 years subject to annual review.
Withdrawals through slips/cheques accompanied by card and passbook.
Each drawal to be repaid within 12 months.
Conversion/reschedulement of loans in case of damage to crops due to natural calamities.
Security, margin, rate of interest, etc. as per RBI norms.
Operations may be through issuing branch and also through other designated branches at the discretion of bank.
KCC loans for notified crops covered under RKBY.
Revised KCC Scheme
AllFarmers – Individuals / Joint borrowers
Tenant Farmers, Oral Lessees & Share Croppers
SHGs or Joint Liability Groups of Farmers including tenant farmers, share croppers etc.
Short Term Limit at the end of the validity period
Term Loan Component
Validity period to be decided by the bank.
Margin to be decided by the bank.
One time documentation at the time of first availment and simple declaration thereafter.
Processing fee to be decided by the banks.
Repayment period as per anticipated harvesting and maturity period of the crops.
Term loan component: Normally repayable within a period of 5 years depending on the type of activity / investment.
Financing banks at their discretion, may provide longer repayment period for term loan.
Extant prudential norms for income recognition, asset-classification and provisioning will apply.
Hypothecation of crops up to card limit of Rs. 1.00 lakh
With tie-up for recovery: Banks may consider sanctioning loans on hypothecation of crops upto card limit of Rs.3.00 lakh
Collateral security at the discretion of Bank for loan limits above Rs.1.00 lakh in case of non tie-up and above Rs.3.00 lakh in case of tie-up advances
Banks to ensure on-line creation of charge on the land records in States where facility available
Interest Subvention/Incentive by GoI and / or State Govt.
Mandatory Crop Insurance and PAIS.
Farmer to have option to take benefit of Assets Insurance & Health Insurance (wherever product is available).
facility of all insurance premia paid through KCC account.
KCC Short Term sub-limit cum SB account
Separate electronic card for ST & long term sub-limits until both the sub-limits are integrated through an electronic card with suitable software.
Using Cheque facility
Through ATM / Debit cards
Through BCs and Ultra Small Branches
Through PoS available in Sugar Mills/ Contract farming companies, etc.,
Through PoS available with input dealers
Mobile based transfer transactions at agricultural input dealers and mandies