Rupay Kisan Credit Card (KCC)

• Context (PIB): A Pilot project has been started to implement the Rupay Kisan Credit Card.
• Under this project, all the cooperative societies’ members will have accounts in the concerned District Central Cooperative Banks.
• Rupay-Kisan Credit Cards (KCCs) are being distributed to the account holders.

Kisan Credit Cards

• The scheme was introduced in 1998 to provide farmers with adequate and timely credit support.
• It was extended for Allied and non-farm activities in 2004.
• Electronic Kisan Credit Cards have been issued on the Working Group report under T. M. Bhasin.
• The age group of 18-75 years is eligible for KCC. Senior citizens must have a legal heir as a co-borrower.
• Implementing Agencies: Commercial Banks, Regional Rural Banks (RRBs), Small Finance Banks, and Cooperatives.

Objectives

• To meet the short-term credit requirements for the cultivation of crops.
• Post-harvest expenses.
• Produce marketing loan.
• Consumption requirements of farmer households.
• Working capital for maintenance of farm assets and activities allied to agriculture.
• Investment credit requirement for agriculture and allied activities.

Features

• It comes with an ATM-enabled RuPay debit card.
• Aadhaar linkage is compulsory for interest subvention.
• It has a validity period of 5 years.
• It attracts no processing fee for loans under KCC.
• The limit of collateral-free agriculture loans has been revised from Rs. 1 lakh to Rs.1.6 lakh.
• It is issued at a reasonable interest rate of 7% per annum with interest subvention of 2% and 3% subvention on prompt payment for short-term crop loans up to Rs. 3 lakh.