International Journals of Marketing and Technology
Year : 2011, Volume : 1, Issue : 2
First page : ( 45) Last page : ( 53)
Online ISSN : 2248-1058.

Kisan Credit Card (KCC): A vehicle for financial inclusion

Sirisha S.¹, Prof. Malyadri P.²

¹Faculty Member, ITM, Warangal

²Principal, Government Degree College Affiliated to Osmania University, Ranga Reddy District, Andhra Pradesh

Online published on 27 June, 2013.

Abstract

Farmers heavily depend on non institutional sources of credit due to frequent needs, inadequate availability of institutional credit, unnecessary delays, cumbersome procedure and improper practices adopted by institutional lending agencies. Provision of timely and adequate credit has been one of the major challenges for banks in India in dispensation of agricultural and rural credit to the farmers. Given the enormity of the credit requirements on the one hand and the vagaries of nature on the other, financing for agriculture has always been a gigantic task for banks. The access to institutional credit for a large number of farmers, particularly small/marginal farmers, continued to be a challenge to the banking industry. Realising the importance of enhancement of flow of credit to the rural sector and reduction of the dependence of farmers on non-institutional sources of credit, the KCC(Kisan Credit Card) scheme was started by the Government of India (GOI) in consultation with the RBI (Reserve Bank of India) and NABARD (National Bank for Agricultural and Rural Development) in August 1998 as an innovative credit delivery mechanism (ICDM) with the objective of providing adequate, timely or without any delay, cost effective and hassle free credit support to farmers. The scheme was implemented across the country in all the states and union territories by the public sector commercial banks, Regional Rural Banks (RRBs) and cooperative banks. The study explores about the Kisan Credit Cards (KCC) Issued by different agencies and its achievements in financial inclusion.

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