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(i) Banks need to adopt financial counselling of their KCC clients to build up
their confidence to use the newer technologies like use of RuPay cards, etc.,
and also as how to avoid misuse/ frauds of RuPay cards.
(ii) Deploying more number of BCs and providing them with POS devices/
Micro-ATMs so that they can interact with the clients of the banks on a
regular basis.
(iii) Expediting installation of more number of ATMs in the rural areas so that
farmers are encouraged to use the ATMs on their own.
12. Both the interest subvention scheme and rebate for prompt repayment have
helped the farmers to increase their net farm income from farming operations.
These measures have not only been found to be beneficial for the farmers in
general but have been found to be necessary in areas of ecological distress
like drought prone and other natural calamities affected areas. Therefore, the
financing under KCC should be upscaled and interest subvention as well as
the rebate for prompt repayment may continue with a view to keep the interest
burden on farmers low and their total paid-outs remain manageable, particularly
during poor crop season.
13. The implementation of KCC scheme has benefitted the farmers to a great extent
and the farmers are able to generate profit, although in varying amounts. However,
to reap the maximum benefits from KCC financing, the following strategies may
be adopted:
(i) The banks may consider establishing ‘Farmers Training Centres’ in line
with ‘Punjab National Bank Farmers Training Centres (PNB FTCs) which is
running 10 FTCs across the country. Such centres will not only help banks
to guide the farmers about the advanced agricultural practices but will also
provide a platform to banks to achieve the objective of financial inclusion in
a more effective way.
(ii) There exist yield gaps at three levels (a) between genetic potential of the
crop variety and that obtained at research farms (b) between research
farm and on the farm of progressive farmers and (iii) between progressive
farmers’ field and average farmer’s field. Agricultural universities/ KVKs
have to intensify their efforts to reduce the gap in yield between progressive
farmers’ field and average farmer’s field so that the increase in farm income
of average farmers can be easily achieved by facilitation of KCC financing.
(iii) Banks may consider promoting and extending financial support to Joint
Liability Groups of tenants and share-croppers so that their farm credit
needs are met adequately.
