16
Particulars
Circulars on KCC implementation
Cir. No. 15/98-99
dtd. 14.08.1998
Cir. No. NB.214/
PCD.30/2004 dtd
09.08.2004
Circular No 71/PCD 04/2011-12 dtd
29.03.2012 & No. 97/PCD 10/2012
dated 20 April 2012
RBI vide circular RBI/2012-13/162
dated 07 Aug 2012 modified the
instruction under para 10 of May
11, 2012 circular and indicated
that “the repayment period may be
fixed by banks as per the anticipated
harvesting and marketing period for
the crops for which a loan has been
granted” (earlier “each withdrawal be
allowed to be liquidated in 12 months
without the need to bring the debit
balance to zero at any point of time”.)
8 Margin
In conformity with
instructions issued
by RBI/ NABARD
No Change
For crop loans, no separate margin
need be insisted upon as the Margin
is in-built while fixing the Scales of
Finance. For term loan component,
it will be in conformity with the
guidelines of RBI from time to time.
9 Security
In conformity with
instructions issued
by RBI/ NABARD
No Change
(i) Hypothecation of crops up to
card limit of Rs. 1.00 lakh. With
tie-up for recovery, banks may
consider sanctioning loans on
hypothecation of crops upto card
limit of Rs.3.00 lakh without
insisting on collateral security.
iii. Collateral security at the
discretion of Bank for loan limits
above Rs.1.00 lakh in case of
non-tie-up and above Rs.3.00
lakh in case of tie-up advances.
iv. In States where banks have the
facility of on-line creation of
charge on the land records, the
same shall be ensured.
10 Maintenance
& operation
in the
account
(i) Withdrawal
slips/ cheques
accompanied by
the card & pass
book
(ii) In case of Coop,
KCC account will
be maintained
at the PACS
concerned &
card will be
issued by the
No Change
i. One time documentation at
the time of first availment and
thereafter simple declaration
(about crops raised) by farmer
from the second year onwards.
ii No Processing fee up to a card
limit of Rs.3.00 lakh.
iii. Farmers to be provided with
KCC Short Term sub-limit cum
SB account so as to allow credit
balance in KCC-cum-SB accounts
to fetch interest at savings bank
