Kisan Credit Card

The Kisan Credit Card (KCC) is a credit card programme launched in Indian public sector banks in August 1998. The National Bank of Agricultural and Regional Development (NABARD) developed this model plan to give advances for agricultural requirements based on the R. V. Gupta Committee’s recommendations.

Importance of Kisan credit card 

Its goal is to provide financial assistance to farmers in order to satisfy the agriculture sector’s comprehensive credit requirements, as well as fisheries and animal husbandry, by 2019. All commercial banks, National Rural Banks, including state co-operative banks are among the participants.

Key Steps In KCC

• A Kisan Credit Card (KCC) had been created specifically to give financial assistance to the country’s farmers.
• The National Bank for Agriculture & Rural Development developed the plan in 1998 to address the agriculture sector’s overall financial needs by providing term loans.
• The card is provided by a number of commercial banks, state cooperative banks, and regional rural banks, among others. 

Objective of a Credit Card

Small farmers have long been abused by affluent landlords, non-institutional creditors, and moneylenders inside the name of loans to cover agricultural expenses and purchase farm inputs.

Many of them aren’t even part of something like the legitimate banking system. As a result, they wind up paying the money lenders a lot more in interest.

In addition, the Kisan credit card has a number of goals, which are listed below:

• To assist in meeting short-term loan requirements for crop production, animal husbandry, and fisheries.

• Meet the needs of the farmer’s family’s consumption.

• To cover post-harvest costs and generate marketing loans.

The Advantages of Having a Kisan Credit Card

• The farmer has more flexibility when it regards to paying the loan.

• A provision exists to enhance the credit limit based on agricultural revenue.

• The cardholder receives the benefit of crop insurance, which protects the crops because they are covered by the Harvest Insurance Scheme. 

• The interest rates are lower than those offered by other traditional sources of financing.

Eligibility for Kisan Credit Cards

• Owner-cultivators who are farmers-individuals/joint debtors.

• Farmers’ Self-Help or Joint Liability Groups, which comprise tenant farmers, sharecroppers, and others.

• Landlords, ShareCroppers, and Oral Lessees, for example.

Documents for the Kisan Credit Card are necessary

• Aadhar Card/ PAN card/ Voter ID card/ Driving License/ • Aadhar Card/ PAN card/ Voter ID card/ Driving License/ Passport • Proof of Address – Voter ID card/ Electricity bill/ Aadhaar card/ Lease agreement

 • Proof of Identity – Aadhar Card/ PAN card/ Voter ID card/ Driving License/ Passport.

Participatory banks’ advantages

• Bank employees at rural offices will be effective in decreasing their burden since there will be no duplication in terms of loan processing, and this system will also assist to avoid the need for multiple checks of the paperwork.
• The plan has streamlined the paperwork and payout processes. The requirement to keep less documentation has saved only the banks a significant amount of time. The cost of transactions has been cut to a larger extent, which has benefited banks greatly.

Online Kisan Credit Card Registration Process

You may apply for a  Kisan credit card straight on the bank’s website. The procedure is straightforward and painless:

• To commence the Kisan credit card online registration procedure, go to the official bank website.
• Select ‘Kisan Credit Card’ from the ‘Cards’ menu.
• Select ‘Apply’ from the drop-down menu.
• Complete the Kisan Credit Card application form online with all of the necessary information.
• Select ‘Submit’ from the drop-down menu.

Following submission, you will be given a reference number that will serve as confirmation of your Kisan credit card registration information. Within 3 to 4 business days, the bank will respond with the status of your Kisan Credit Card application.

Offline Kisan Credit Card Registration Process

If you want to register for just a Kisan Credit Card in person rather than online, you may do so at any bank location. To apply for a Kisan Credit Card, you must first fill the registration form, which is accessible as a PDF online.

After you’ve completed the form, you may take it to the bank to start the Kisan Credit Card application process. The credit card loan balance would then be communicated to you by the bank’s loan officer.

Eligibility

• Tenant Farmers, Oral Lessees, and ShareCroppers 
• Self Help Groups (SHGs) or Collective Liability Associations of Farmers, comprising tenant farmers, share croppers, and others. 

The Kisan Credit Card Scheme’s Highlights

•  The KCC plan offers an ATM-enabled RuPay Card, one-time paperwork, cost escalation integrated into the limit, and an unlimited amount of withdrawals within the limit. The National Payments Corporation of India created and launched RuPay, an Indian domestic card programme (NPCI).
• It was established to meet the Reserve Bank of India’s goal of having a local, open-loop, and multilateral payment system in India. RuPay is a system that allows you to make electronic payments at any bank or financial institution in India.

Conclusion:

Its purpose is to give financial support to farmers in order to meet the overall credit requirements of the agricultural, fishery, and animal husbandry sectors. Participants include all financial firms, Rural Banks, and state co-operative banks. It was created to help India achieve the Reserve Bank of India’s aim of creating a local, open-loop, multilateral payment system.