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RBI Revises Norms for Banks on Short Term Crop Loan Under KCC

Published on May 12, 2022
Current Context: RBI modified norms for banks to claim the amount of interest subvention provided to farmers under the short-term crop loan scheme through the Kisan Credit Card (KCC) during the last fiscal.
RBI Revises Norms for Banks on Short Term Crop Loan Under KCC
  • Pending claims for the fiscal year 2021-22 can be submitted by June 30, 2023, and they must be duly certified by statutory auditors whether it is true or false.
  • Kisan Credit Card:
    • KCC Scheme was first introduced in 1998 for providing timely credit support from banking, further extended for investment credit requirements of farmers in allied and non-farm activities in the year 2004.
    • Minimum paperwork and simplification of documentation for withdrawal of funds from the bank.
    • Flexibility to draw cash and buy inputs.
    • Assured availability of credit at any time enabling reduced interest burden for the farmer.
    • It also covers post-harvest expenses, consumption requirements of farmer households, farm assets, agriculture, and allied activities.
  • Interest Subvention Scheme
    • It aims to provide short-term crop loans up to 3 lakh to farmers at a 7% annual interest rate.
    • PSBs and Private sector commercial banks offer interest subvention of 2 percent by the government.
    • The policy came into force with effect from 2006-07.
    • It is implemented by NABARD and SEBI.
  • Present Governor of RBI: Shri Shaktikanta Das-25th Governor of RBI.

Question: 

Q.1 Kisan credit card scheme is implemented by?
a. RRB’s
b. State Co-operative
c. Commercial Banks
d. Small Finance bank
e. All of the above
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