208
Before we delve into the findings/observations of the NABARD-
Samantara (2010) study which we think are in any case very crucial and
illuminating, we may make a couple of observations on the same study. It is
stated in one place thus: “It is observed that most of the KCC holders were
not aware of the modalities, usefulness/benefits of KCC scheme” (p.xii). On
the same page elsewhere, it is stated thus: “about 19% of the sample KCC
holders were not aware of the modalities usefulness/benefits of KCC scheme”.
The scale 19% cannot constitute “most of the KCC-holders”. Similarly, it is said
in another context (p.xiii) that “majority of KCC holders (33%) were availing the
facilities.....”
Be that it may, NABARD-Samantara (2010) study results are indeed
illuminating and noteworthy. What we propose to do in the following paragraphs
is to consolidate the key lessons and recommendations of the Bhaskaran
(2012) as well as NABARD-Samantara (2010) studies and present a set of what
we think are crucial suggestions for making the KCC scheme more effective
and fill the gap that is noticed between the goals of a hassle-free and egalitarian
credit arrangement and the grassroots level reality.
Major Findings Which Throw Up Suggestions for Improving the KCC
Scheme
1.
Improve the MIS on KCC Reportings
NABARD’s latest study (Samantara 2010) has clearly brought out how
the officially recorded 717.51 lakh KCCs get corrected to 472.68 – about
34% less when four types of shortcomings are taken into account:
(a) more than one family member having the same operational holding
have been issued the KCC, (b) the same person has been issued multiple
KCC by various banks, (c) in certain cases, KCC lapsed after a period of
three years, but were still counted as valid ones in the MIS and finally,
(d) in certain cases, KCC were renewed after a period of three years, but
such cards were shown to be freshly issued.
2.
Enhance Publicity of The Scheme and Educate the Borrowers
Most of the KCC-holders were not aware of the modalities, usefulness/
benefits of KCC Scheme like, revolving cash credit facility (RCCF)
involving any number of drawals and repayments, credit limits for full
year including ancillary activities related to crop production and other
NFS activities, sub limit for consumption purposes, etc..
