What is Kisan credit card and how it works?

A Kisan Credit Card (KCC) is a credit delivery mechanism that is aimed at enabling farmers to have quick and timely access to affordable credit. The Reserve Bank of India and NABARD launched it to reduce farmer dependence on the informal banking sector for credit that can be very expensive and suck them into a debt spiral.

How does KCC Work?

  1. The KCC is like a plastic credit card.
  2. Banks issue a credit card cum passbook that carries details of the customer’s landholding, address, credit limit and validity.
  3. The KCC allows cash credit to farmers to take care of crop related expenses like seeds, fertilizers, pesticides, electricity and diesel charges etc. 
  4. It also offers term credit for allied activities like buying equipment, land development and drip irrigation. 

Know more about the Kisan Credit Card Scheme (KCC) on the given link.

Further readings – 

  1. Line of Credit
  2. Cashless Economy in India
  3. NABARD – National Bank for Agriculture and Rural
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