Nationwide AHDF KCC campaign for 2023-24

Q. Why in News/Context -

·       In order to expand the benefit of Kisan Credit Card to all eligible animal husbandry, dairy and fishery farmers in the country, Department of Animal Husbandry and Dairying, in association with the Department of Fisheries (DOF) and the Department of Financial Services (DFS), is organizing a “Nationwide AHDF KCC Campaign” from 1st May 2023 to 31st March, 2024.

Q. What is Kisan Credit Card (KCC) Scheme

·   The Kisan Credit Card (KCC) scheme was introduced in 1998 for issue of Kisan Credit Cards to farmers on the basis of their holdings for uniform adoption by the banks so that farmers may use them to readily purchase agriculture inputs such as seeds, fertilizers, pesticides etc. and draw cash for their production needs.

·    The scheme was further extended for the investment credit requirement of farmers viz. allied and non-farm activities in the year 2004. The scheme was further revisited in 2012 by a working Group under the Chairmanship of Shri T. M. Bhasin, CMD, Indian Bank with a view to simplify the scheme and facilitate issue of Electronic Kisan Credit Cards.

·   The scheme was extended to cover the investment credit requirement of farmers in 2004.

·     In 2018-19, the facility was extended to fisheries and animal husbandry farmers.

Q. Who implements this Scheme?

·   The Kisan Credit Card Scheme is to be implemented by Commercial Banks, RRBs, Small Finance Banks and Cooperatives.

Q. What is the Objective / Purpose of this scheme?

The Kisan Credit Card scheme aims at providing adequate and timely credit support from the banking system under a single window with flexible and simplified procedure to the farmers for their cultivation and other needs as indicated below:

     i.        To meet the short term credit requirements for cultivation of crops;

    ii.        Post-harvest expenses;

   iii.        Produce marketing loan;

  iv.        Consumption requirements of farmer household;

   v.        Working capital for maintenance of farm assets and activities allied to agriculture;

  vi.        Investment credit requirement for agriculture and allied activities.

Q. Who are eligible for this scheme?

i. Farmers - individual/joint borrowers who are owner cultivators;

ii. Tenant farmers, oral lessees & share croppers;

iii. Self Help Groups (SHGs) or Joint Liability Groups (JLGs) of farmers including tenant farmers, share croppers etc.

Q. What are the benefits of this scheme?

·      Short term loan to farmer at fixed 7% interest with an upper limit of Rs. 3 lakh, repayable within one year.

·        Availability of Term loan to farmers, repayable within 5 years.

·        RuPaykisan cards/debit cards to farmers for easy withdrawal from ATMs.

·        Farmers shall be able to generate profit in varying amount.

·        It helps the farmer to increase their net farm income from farming operations.

·        Helpful for farmers living in area affected by natural calamities.

·    It keeps the interest burden on farmers low and their paid –outs remain manageable, especially during poor crop season

·        Farmers can draw and repay amount any number of times for short term loan.

·        Farmer can apply for loan against the warehouse receipt of his produce.