Issue of Kisan Credit Cards to farmers for agriculture and allied activities
Ref. No. NB.DoR-ST/ 141 /KCC-1/2020-21
Circular No. 146 /DoR- 43 /2020
01 June 2020
1. The Managing Director
All State Cooperative Banks
2. The Chairman
All Regional Rural Banks
Dear Sir
Issue of Kisan Credit Cards to farmers for agriculture and allied activities
As you are aware, the Govt. of India had launched a special drive from 08 February 2020 for covering all PM Kisan beneficiaries under the KCC scheme.  The drive, which started on 10 February and continued till the end of April 2020 has created a positive impact. This has resulted in receipt of approximately 75 lakh KCC applications by banks, of which about 36 lakh KCCs have been issued with a total credit limit of Rs.30,000 crore.  The sanction and issue of KCC to all remaining eligible PM Kisan beneficiaries who had applied for KCC during this special drive may be taken up on a priority basis by banks.
2. Meanwhile, as a part of the Prime Minister’s package for farmers, Hon’ble Finance Minister has announced to cover 2.5 crore farmers under the KCC scheme in a mission mode to facilitate credit to the farm sector. In this regard, Department of Agriculture Cooperation and Farmers Welfare (DAC&FW), GoI vide their letter dated 21.05.2020 (copy enclosed) has requested the State/UT administrations to take up necessary measures for sanction and issue of KCC to all eligible PM Kisan beneficiaries.  
3. To address the credit needs of farmers engaged in activities related to Animal Husbandry and Fisheries, the Government had decided to extend KCC facility to these farmers for their working capital requirement and detailed guidelines in this regard were issued by us vide our Circular No.34/DoR-08/2019 dated 13 February 2019.  At a time when the country is striving to cope with the COVID-19 pandemic, timely access to credit by farmers engaged in the Fisheries, Dairy and Poultry related activities for their working capital requirement through KCC will go a long way in facilitating a meaningful recovery of the rural economy.  With this objective, the Department of Animal Husbandry and Dairying (DAHD) GoI has also decided to simultaneously launch a special drive effective from 1 June 2020 to provide KCC to 1.5 crore dairy farmers belonging to Milk Unions and Milk Producing Companies.  The detailed advisory guidelines along with a revised application form for issue of KCC to dairy farmers including those affiliated to Milk Unions has since been issued vide DAHD letter dated 28 May 2020, a copy of which is enclosed as Annexure II for ready reference.
4. During the special campaign, you are advised to make all out efforts to ensure the following:
(a) Saturation of all the PM-Kisan beneficiaries under KCC: It may be ensured that to the extent possible, all eligible beneficiaries of PM-Kisan are covered under the KCC scheme by issue of fresh KCC or, enhancement of the existing KCC limit or, activation of inoperative KCC account.
(b) Issue of KCC to dairy farmers: Applications received by banks in the revised format for issue of KCC to the eligible dairy farmers should be processed expeditiously as per the extant guidelines for issue of fresh KCC or enhancement of the existing KCC limit or, activation of inoperative KCC account.
(c) In order to provide the farmers with the much needed social security, eligible farmers may also be enrolled for the following schemes through auto debit facility:
i. Pradhan Mantri Suraksha Bima Yojana (PMSBY)
ii. Pradhan Mantri Jeevan Jyoti Bima Yojana (PMJJBY)
5. Keeping in view the importance of the above mentioned campaign, the following may please be ensured
(a) Regional Rural Banks and Cooperative Banks to expedite processing and sanction of applications received by them. DAC&FW and DAHD will ensure sourcing of the applications along with the relevant documents including land records etc. from eligible PM-Kisan beneficiaries and Dairy farmers respectively through the local administration and their field functionaries.
(b) To facilitate sanction and issue of KCCs to dairy farmers.  A revised KCC application form vetted by the IBA has been circulated by DAHD and the same has also been uploaded on their website.  This application form should be uploaded on the websites of all banks and widely disseminated in local language.
(c) To ensure prompt processing and approvals, dedicated desks may be set up in the branches, wherever feasible, for receiving forms and providing appropriate guidance to the farmers.
(d) The directions on waiving of processing, documentation, inspection, ledger folio charges and all other service charges for KCC/ crop loans upto Rs.3 lakh, keeping in view the hardship and financial distress of small and marginal farmers, conveyed vide our Circulars No.32/DoR-06/2019 and 33/DoR-07/2019 dated 11 February 2019 addressed to State Cooperative Banks and RRBs may be followed while processing the applications for issue of KCC.
(e) While filling up the application form, the applicants may be encouraged to give consent for coverage under the PMSBY and PMJJBY, as besides the facility of KCC, this would provide the much needed social security cover to the farmers.
(f) It needs to be ensured that eligible beneficiaries of PM-Kisan and farmers engaged in dairy, poultry and fisheries are issued KCC within the shortest possible time and in any case within a maximum period of two weeks from the date of submission of the completed application forms, after due process and verification as per Bank’s policy and regulatory guidelines.
(g) Bank should nominate a nodal officer for coordination on matters relating to this campaign.  The nodal officer will be responsible for reporting the progress of coverage at such intervals and in such format for reporting, as would be required by DAC&FW and DAHD.  The current practice of online reporting of data by the banks on the ENSURE portal of NABARD and PMFBY portal of DAC&FW will continue.
6.  Suitable instructions may, therefore, be issued to all District Cooperative Banks/ Controlling offices and branches of Regional Rural banks to ensure the success of this campaign.  
7. The Progress of the campaign may be reported on the ENSURE portal so us to keep the GOI informed on regular basis.
Yours faithfully
(Jiji Mammen)
Chief General Manager
Endt. No. NB.DoR-ST/ 142 /KCC-1/2020-21 of date.
Copy to CGM/OIC, All ROs, NABARD to closely monitor issue of KCCs as envisaged by GoI banks and ensure submission of MIS.
Deputy General Manager