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Introduction
Kisan Credit Card Scheme: Introduction
1.1 Shri Yashwant Sinha, the then Union Minister of Finance, in his 1998-99 Budget
Speech on 01 June 1998 introduced the
‘
Kisan Credit Card’ (KCC) Scheme as
“NABARD is being asked to formulate a model scheme for issue of Kisan Credit
Cards to farmers on the basis of their holdings for uniform adoption by the
banks so that the farmers may use them to readily purchase agricultural inputs
such as seeds, fertilizers, pesticides etc. and draw cash for their production
needs
.” Accordingly, on the recommendations of R V Gupta Committee, NABARD
formulated a Model Kisan Credit Card Scheme in consultation with major banks
in the country. The ‘Model Scheme’ was circulated by RBI to commercial banks
vide reference No.RPCD.PLFS.BC.NO 20/05.05.09/98-99 dated August 5, 1998
and by NABARD to Cooperative Banks and Regional Rural Banks vide reference
No. NB.PCD (OPR)/794/A-137(Spl.)/98-99 dated 14 August 1998 (Circular No.
15/98-99), with instructions to introduce the same in their respective area of
operation. The KCC guidelines have gone through several changes since then.
The important developments in KCC implementation are given below.
Table 1.1: Important developments in KCC Scheme implementation
Circular Date
Particulars
14 Aug 1998 Introduction of KCC Scheme and circulation of Model KCC scheme to banks
14 Jun 2001 Personal Accident Insurance Scheme (PAIS) for KCC holders introduced
09 Aug 2004
(i) Scheme to cover term loan for agriculture & allied activities under KCC
introduced
(ii) Validity of Kisan Credit Card increased from 3 years to 5 years
01 Jun 2006 In response to Union Finance Minister’s budget announcement (2006-07),
interest on short term credit to farmer was fixed at 7% up to KCC upper limit
of Rs. 3.0 lakh on principal amount.
31 Oct 2006 KCC scheme for the borrowers of Long Term Cooperative Credit Structure
i.e., State Coop Agri & Rural Dev Banks introduced
29 Mar 2012 Kisan Credit Card – a comprehensively revised KCC scheme incorporating
many new components (composite loan, 10% & 20% provisions for con-
sumption & asset maintenance, year-wise drawing power for five years, etc.)
was launched
09 Nov 2012 Scheme for issue of KCC in the form of interoperable RuPay Cards
15 Nov 2012 In a meeting of Union Finance Minister with Banker, it was decided to con-
vert all old KCCs into ATM-cum-Debit/RuPay Cards
01 Aug 2014 Support for ICT solutions through POS/ micro-ATMs and RuPay Kisan Cards
under KCC scheme
08 Jul 2015 Coverage of KCC holders under Atal Pension Yojna (APY)
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