RBI to Digitize KCC

Published on September 05, 2022
Current Context: The Reserve Bank of India (RBI) announced taking up a pilot project for end-to-end digitization of the Kisan Credit Card (KCC).
RBI to Digitize KCC
  • The main objective of the project is the digitalization of KCC lending.
  • With the automation of the processes involved, RBI aims to make lending, cost-effective and efficient for borrowers by reducing the turnaround time.
  • The project will be launched as a pilot in the states of Madhya Pradesh and Tamil Nadu and it will gradually expand across the country.
  • The concept of rural credit is closely linked to inclusive economic growth, as it caters to the requirements of agriculture and allied sector along with non-farm activities viz. ancillary industries, small businesses, etc.
  • The KCC scheme was launched in 1998 on the recommendations of the R. V. Gupta Committee to issue farm loans to farmers based on their land holdings. The objective behind the scheme was to provide farmers with short-term credit for buying agricultural inputs such as seeds, fertilizers, pesticides, etc., and draw cash for their production needs. In 2004 the scheme was extended to allied and non-farm activities too.

Question:

Q.1 The pilot project for the digitization of the Kisan Credit Card will be launched by?
a. NABARD
b. RBI
c. SIDBI
d. SEBI

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