From Kisan Credit Cards to NABARD’s Working Capital Funding: Govt announced several measures to boost the credit flow
In an attempt to boost the flow of credit to the agriculture sector, the central government has decided to bring more farmers under the ambit of the Kisan Credit Card (KCC) scheme.
“Nearly ₹2 trillion of concessional credit will be extended to boost farming activities. The special drive will include 25 million farmers who do not, at the moment, have the KCC,” said FM Sitharaman.
It is to be noted here that the government would conduct a “special drive” to bring these farmers under the ambit of KCC.
In the 2018-19 budget, the government had announced to extend the facilities of KCC to animal husbandry farmers and fisheries. Hence, fishermen and animal husbandry farmers will also be included in this scheme.
NABARD will also provide an additional emergency working capital funding of Rs 30,000 crore to farmers in order to meet their crop loan requirements. This move is likely to benefit approximately 30 million farmers, including small and marginal farmers.
About Kisan Credit Card (KCC) Scheme:
- The KCC scheme was launched in August 1998.
- It provides term loans for agricultural needs of the farmers.
- The model of KCC scheme was prepared by NABARD (National Bank for Agriculture and Rural Development).
- The form of this scheme can be downloaded from the commercial banks’ websites.
- The purpose of this initiative is to save farmers from the exorbitant rates usually charged by moneylenders.