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In an endeavor to target the farmers, the Union Government in its 2018-19 budget had announced its decision to extend the facilities of Kisan Credit Card (KCC) to Animal Husbandry farmers and fisheries (AH & F). It will help them in meeting their working capital requirements. Now finally it has got approval in consultation with stakeholders to extend this facility to the farmers to meet their working capital requirement.
So now let’s have a look at this facility which is notified through 4th February 2019 notification of Reserve Bank of India (RBI).
Before moving ahead, let’s try to know what Kisan Credit Card is?
The Kisan Credit Card was introduced by the NDA Government in 1998. Further, the main purpose of this card is to fulfill timely and short term credit needs of the farmers in India. Also, this is mainly during the planting and harvesting season.
However, the motive behind launching this card was to reduce the dependency of the farmers on the informal banking sectors. The Kisan Credit Card intends to remove complications by offering cost-effective credit to farmers for agricultural purposes.
The KCC scheme aims at providing adequate and timely credit support to the farmers from the banking system under a single window with a flexible and simplified procedure for short term crop loans.
However, this Scheme will serve the purpose of meeting short term credit requirements of farmers to take care of:
To avail the benefits under the Kisan Credit Card Scheme, the following eligibility criteria needs to be taken care of:
Inland Fisheries and Aquaculture:
Marine Fisheries:
Beneficiaries who own or lease registered fishing vessels or boats must possess a necessary fishing license or permission for fishing in sea, fish farming activities in the open sea and any other such related activities.
It includes farmers, poultry farmers which can be either individual or joint borrower, joint liability groups. They can further include tenant farmers of sheep/ goats/pigs/poultry/birds/rabbits and having owned/rented/leased sheds.
Farmers and Dairy farmers either individual or joint borrower, Joint Liability Groups or Self Help Groups. It further includes tenant farmers having owned /rented/leased sheds.
Read our article:Pradhan Mantri Kisan Samman Nidhi Scheme
The working capital requirements or finance would be measured on the following basis:
The general guidelines are as under:
You can read the complete circular issued by the Reserve Bank of India from here “Kisan Credit Card (KCC) to Animal Husbandry Farmers and Fisheries[2]”
While the scheme launched seems impressive as the Government of India has decided to extend the facilities of Kisan Credit Card (KCC) to Animal Husbandry farmers and Fisheries. Moreover, the Reserve Bank of India is also of the opinion that it will ultimately help them meet their working capital requirements.
Read our article:Budget 2019: Key Highlights of Interim Budget at a Glance
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