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1.4 The RBI circular (No. 553 dated 11.05.2012) has added an additional feature
by highlighting the other conditions suggested by Government of India while
implementing the revised guidelines of KCC Scheme –“In case the farmer applies
for loan against the warehouse receipt of his produce; the banks would consider
such requests as per the established procedure and guidelines. However, when
such loans are sanctioned, these should be linked with the crop loan account, if
any, and the crop loan outstanding in the account could be settled at the stage of
disbursal of the pledge loan, if the farmer desires”.
1.5. Further, in contrast to NABARD circular (point no 13 (iv) of No. 71 dated 29
March 12) to RRBs and cooperative banks which says that ‘no processing fee
should be charged up to Rs. 3.0 lakh’, the RBI circular no 553 dated 11 May
2012 says that ‘processing fee may be decided by banks’. Later, NABARD too
modified the instruction on this issue vide circular No. NB 228/PCD-25/2012
dated 13 Sept 2012 and suggested that the processing fee may be decided by the
respective bank.
1.6. These circulars also spelt out about the nature of delivery channels which are to
be in place to start with so that the Kisan Credit Card is used by the farmers to
effectively transact their operations in their KCC account. They can be:
1.
Withdrawal through ATMs / Micro ATM
2.
Withdrawal through BCs using smart cards.
3.
PoS machine through input dealers
4.
Mobile Banking with IMPS capabilities/ IVR
5.
Aadhaar enabled Cards.
For other details, the circulars by NABARD (No. 71 dated 29 March 2012) and
RBI (No. 553 dated 11 May 2012) can be referred to.
The Present Study on Kisan Credit Card Scheme
1.7. Department of Financial Services, Ministry of Finance, Govt of India vide letter
No. F.No. FI-7/1/2016-AC dated 19 Feb 2016 requested NABARD to conduct a
comprehensive study on implementation of revised KCC scheme.
The specific terms of reference for the proposed study are as under:
(i) Is the revised Kisan Credit Card Scheme serving its intended purpose?
(ii) Reasons for gap between number of agricultural households and number of
operative KCCs
(iii) Government has advised banks to convert all existing KCCs into ATM/
RuPay cards. Whether action plan in this regard has been chalked out at
branch level? Also, whether all new KCCs are issued in the form of RuPay/
ATM debit cards?
