35
Table- 3.4: Coverage of Bank Branches
Particulars/ Parameter
Assam Bihar UP Punjab Maha Kar Overall
No of Branch-
es (Banks)
covered
CBs
4 (3)
4 (2)
4 (2)
4 (2)
4 (3)
4 (1)
24 (10)
RRBs
4 (1)
5 (2)
4 (2)
4 (2)
4 (2)
4 (2)
25 (11)
Coop 2 (1)
4 (2)
4 (2)
4 (2)
4 (2)
4 (2)
22 (11)
Total
10 (5) 13 (6) 12 (6) 12 (6) 12 (7) 12 (5) 71 (32)
3.10 As far as awareness about revised guidelines on KCC (March/ May 2012) is
concerned, the following observations are made in this regard:
(i) All the 71 Branch Managers were aware that validity of KCC is for five years.
(ii) All the Branch Managers were aware that they had to add 10% and 20% in
the KCC limit over and above the crop loan requirement. It was also clear
to them that 10% was towards consumption purpose. However, quite a
good number of Branch Managers were not clear about the exact use of
20% of limit which had to be extended towards repair and maintenance of
farm assets, crop insurance, PAIS and asset insurance. A few of them were
found arguing that unless receipt of work done in case of repair was shown
to the Branch Manager, amount would not be paid to the farmers. Branch
managers were also of the view that most of the small farmers did not own
assets like tractor and pump sets which require regular maintenance and
therefore extending loan to them towards farm maintenance was of no use
and it would not be used for the intended purpose.
(iii) All the Branch Managers were aware that they had to increase the KCC limit
every year by 10 per cent. Although revised guideline had clearly indicated
that this 10% increase in KCC limit every year was towards cost escalation/
scale of finance, however, majority of them were not clear whether this 10
per cent increase was to be effected even if there was no upward revision in
the scale of finance next year.
(iv) Majority of Branch Managers (>70%) were also not aware that the KCC limit
fixed for a farmer was on the assumption that the farmer would not change
his cropping pattern. In case farmer had changed his cropping pattern, his
KCC limit had to be re-worked out. In fact, not even a single instance of
enhancement of KCC limit on account of change in cropping pattern was
observed in the selected branches during the course of the study.
Fixation of Scale of Finance:
3.11 The general approach of fixing the crop-wise Scale of Finance (SOF) in five
(Assam, Bihar, UP, Maharashtra, Karnataka) states was found to be the same
and was limited to expenditure on cultivation of crops only. Further, SOF in these
five states were being prepared for all the districts by District Level Technical
Committee (DLTC) convened by District Central Cooperative Bank of the district
once in a year.
