Rupay Kisan Credit Card (KCC)

Subscribe to Never Miss an Important Update! Assured Discounts on New Products!

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.

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.

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.