Kisan Credit Card (KCC)
- The KCC scheme was introduced in 1998 to provide adequate and timely credit support from the banking system under a single window with flexible and simplified procedures to the farmers for their cultivation and other needs.
- In 2004, the KCC scheme was extended to allied and non-farm activities.
- In the 2018-19 Budget, it was extended to fisheries and animal husbandry farmers.
Objectives of KCC
- The objectives of KCC are to meet:
- Short-term credit requirements for the cultivation of crops and rearing animals, birds, and other aquatic organisms
- Post-harvest expenses
- Produce marketing loan
- Consumption requirements of farmer household
- Working capital for maintenance of farm assets and activities allied to agriculture
- Investment credit requirement for agriculture and allied activities
Implementing Agencies of KCC
- Commercial Banks
- Regional Rural Banks (RRBs)
- Small Finance Banks
- Cooperatives
Eligibility of Farmers for KCC
- All farmers-individuals/Joint borrowers who are owner cultivators.
- Tenant farmers, oral lessees, and sharecroppers
- SHGs or Joint Liability Groups of farmers, including tenant farmers, sharecroppers, etc.,
Important Salient Features of KCC
- Credit limit is fixed based on operational land holding, cropping pattern, and scale of finance.
- Conversion/rescheduling of loans permissible in case of damage to crops due to natural calamities.
- Crop loans under the KCC for notified crops are covered under the Crop Insurance Scheme to protect farmers against crop loss by natural calamities, pest attacks, etc.
|
Modified Interest Subvention Scheme (MISS)
- MISS is a central sector scheme (100% funded by GoI) launched in 2006-07 to provide short-term Agri-loans to farmers through KCC at a concessional interest rate.
- It was earlier known as the Interest Subvention Scheme (ISS).
- Under this scheme, farmers are given KCC loans at a subverted interest rate of 7% per annum for loans up to Rs 3 Lakhs.
- At present, an interest subvention of 1.5% is being given to the concerned financial Institutions.
- An additional 3% subvention is also given to farmers for prompt and timely repayment of loans.
MISS for Protecting Small and Marginal Farmers (SMFs)
- To protect SMFs against the distress sale of their produce, the benefit of MISS is available for post-harvest loans against Negotiable Warehouse Receipts (NWRs) for a further period of six months post-harvest to SMFs having Kisan Credit Cards (KCCs).
MISS for Natural Calamities
- To provide relief to farmers affected by natural calamities, the benefit of MISS is available on the restructured amount to banks for the first year.
- Such restructured loans would attract the normal rate of interest from the second year onwards as per the policy laid down by RBI.
Implementing Agencies of MISS
- Reserve Bank of India (RBI)
- National Bank for Agriculture and Rural Development (NABARD)
Financial Institutions Who Get Subvention Under MISS
- Scheduled Commercial Banks (SCBs)
- Small Finance Banks
- Regional Rural Banks
- Cooperative Banks
- Computerized Primary Agricultural Credit Societies (PACS) ceded with SCBs
|
PMFBY and RWBCIS
Pradhan Mantri Fasal Bima Yojana (PMFBY)
- The PMFBY crop insurance scheme was launched in 2016.
- It was formulated in line with the One Nation-One Scheme theme by replacing:
- National Agricultural Insurance Scheme (NAIS) and
- Modified National Agricultural Insurance Scheme (MNAIS).
Objectives of PMFBY
- Provide insurance to farmers for crop failure due to unforeseen events (natural calamities, pests, and diseases).
- Stabilise the income of farmers to ensure their continuance in farming.
- Encourage farmers to adopt innovative and modern agricultural practices.
- Ensure credit flow to the agriculture sector to ensure food security, crop diversification, and growth and competitiveness.
Coverage of Risks and Exclusions under the PMFBY Scheme
- Crop risks leading to crop loss covered under the scheme are:
- Prevented Sowing/Planting/Germination Risk
- Standing Crop (Sowing to Harvesting)
- Post-Harvest Losses
- Localized Calamities
- Crop loss due to attack by wild animals
- General Exclusions: Losses due to war and nuclear risks, malicious damage, and other preventable risks shall be excluded.
Restructured Weather Based Crop Insurance Scheme (RWBCIS)
- RWBCIS was launched in 2016 and is being administered by the Ministry of Agriculture.
- Aim: to mitigate the hardship of the insured farmers against the likelihood of financial loss on account of anticipated crop loss resulting from adverse weather conditions.
- RWBCIS uses weather parameters as a “proxy‟ for crop yields in compensating the farmers for deemed crop losses.
- All standard claims are processed and paid within 45 days from the end of the risk period.
Crops Covered by PMFBY and RWBCIS
- Food crops (Cereals, Millets, and Pulses)
- Oilseeds
- Commercial/Horticultural crops
Rate of Premium Paid by the Farmer to Insurance Company under PMFBY & RWBCIS
| Crop |
- Rate of Premium
|
| Kharif crops |
2% |
| Rabi crops |
1.5% |
| Commercial crops |
5% |
| Horticultural crops |
5% |
- If the premium rate quoted by the Insurance Company is higher than the above rates, the State and GoI will pay the difference at 50% each in the form of premium subsidy.
- GoI’s share in premium subsidy is 90% for the North Eastern States.
- GoI’s premium subsidy is limited up to 30% for unirrigated areas/crops and 25% for irrigated areas/crops (Before 2020, there was no upper for central subsidy).
Farmers Covered by PMFBY and RWBCIS
- Both schemes are optional for all farmers.
- Before 2020, PMFBY was mandatory for farmers who have taken institutional loans.
|