KCC Saturation Drive

Kisan Credit Card: Introduction Provides timely credit to farmers to primarily meet short cultivation requirement, post harvest expenses, consumption requirement etc. Implemented by Commercial Banks, Cooperative Banks and RRBs Under Interest Subvention Scheme (ISS) a interest subvention @ 2% for short term crop loan and Prompt Repayment Incentive (PRI) of 3%. Thus effective rate of interest of 4%. Some States further subvent the interest Presently 6.92 crore active KCCs against 14.5 crore operational landholdings. Nearly 50% of farmers are out of the ambit of the Scheme.

Why farmers were reluctant in availing benefit of KCC No fixed timelines for the banks - Banks took a long time to issue KCCs. Farmer had to pay variety of charges (processing, documentation, inspection and folio) ranging from Rs.2000 – Rs.5000 for different banks Application procedure and documents were complicated, and different for different banks. No enabling system in place. Lack of awareness about the Scheme and enrolment procedures Money-lenders are in their proximity.

Policy analysis and farmer friendly eco system Govt analysed the entire ecosystem Visit of Central team to States, Banks etc. Interaction with farmers to get first hand information A farmer friendly eco system has now been developed All charges (processing, documentation, inspection and folio) have been waived off A uniform application form has been prescribed for all banks Collateral-free loan limit increased to 1.6 lakh by RBI Animal husbandry and fisheries farmers have been brought under the fold of KCC with interest subvention and PRI benefit Subsequently a campaign has been designed and launched

KCC Saturation Drive A focussed drive to bring all farmers under the protection of agriculture credit by providing them Kisan Credit Card, and ensure a stress free farming experience by releasing them from the clutches of private money lenders. Target for issue of new KCC till 31st August, 2019: 1 Crore Instructions already issued to all States by DAC&FW and DFS

Campaign Modalities Village wise/Bank Branch wise dedicated camps for enrolment All banks have been asked to actively participate in the drive. Dedicated desks in Bank branches to be set up for providing appropriate guidance to the farmers. For farmers not having bank account: new bank account for such farmers in their nearest branch. Documents required – Simple three documents Land Record details, Identity and Residence Proof Two Photographs Revenue officials and other State officials will be present to facilitate the entire process during the camp. They will help to get the documents/certificates Banks to mandatorily issue new KCCs within 15 days of application

Regional Gap in issue of KCC (Numbers in Lakh) STATE/Uts OPERATIONAL HOLDINGS OPERATIVE KCCs GAP in KCC NORTHERN REGION 128.07 109.24 18.83 NORTH-EAST REGION 41.63 13.40 28.23 WESTERN REGION 201.07 87.23 113.84 CENTRAL REGION 386.66 218.26 168.40 SOUTHERN REGION 387.13 156.01 231.12 EASTERN REGION 312.67 108.03 204.64 TOTAL 1457.23 692.17 765.06

Responsibilities – State Govt To lead the entire initiative The campaign to be jointly run by the Finance Dept and the Agriculture Dept SLBCs need to be active and district wise targets need to be fixed Organise Bank wise camps or Village wise camps with presence of revenue and agri officials SLBCs have been asked to identify the districts where maximum gap exists – No of holdings v/s the number of KCCs issued and fix targets Responsibilities – District level District Collector to be overall in-charge of the programme LDM shall implement the programme and shall be responsible for scheduling the bank wise/village wise camps Camps to be organised on pre-declared dates and applications submitted to the bank branches

Monitoring Intensive Monitoring at all levels supported with state of art technology solutions National Weekly Video Conference with States chaired by Secretary. Agriculture A web-based dashboard being developed to monitor the district wise mobilisation of farmers. State Level Weekly Video Conference with the District Collectors

Awareness and Mobilisation (Resources from Bank) Village level mobilisation campaigns to be initiated by the District administration Personal connect critical to inform the farmers and clear their doubts. Campaign to ensure that the farmers get KCC easily which will prevent them from borrowing from money lenders Complete coverage about the date of village level camp through public announcements House visits Corner meetings Folk/nukkad natak in mandis Mobilisation through anganwadi Youth clubs to be involved to mobilise farmers KVKs to conduct special mid media campaigns and interpersonal level campaigns