Kisan Credit Card Scheme as per RBI latest guidelines. Complete scheme norms and loan limit assessment for bankers and farmers. Important for JAIIB / CAIIB exam and Bank PO exam (Banking Awareness). Please like and share the video and subscribe my channel for more banking awareness video. For details you may study my book on JAIIB.
Kisan Credit Card is a credit card provided by banks to farmers in India to enable them to access affordable credit. Studies have shown Kisan Credit Cards have increased crop yields, farm incomes, and cropping intensity for beneficiary farmers. One study found wheat crop yields increased by 82% and incomes increased by 75% due to access to credit through Kisan Credit Cards. Another study found beneficiary farmers had a higher cropping intensity of 233% compared to 208% for non-beneficiary farmers, and beneficiary farmers allocated more land to commercial crops. Access to credit through Kisan Credit Cards also enables farmers to purchase higher quantities of inputs like seeds, fertilizers and employ more farm labor, thereby increasing productivity and incomes.
The document discusses the Kisan Credit Card (KCC) scheme in India. KCC was introduced in 1998-99 by the Reserve Bank of India and NABARD to provide easy access to credit for farmers. It functions as a revolving cash credit facility with a limit set based on landholding and crops. Farmers can withdraw funds for agricultural inputs and household needs. Key features include flexibility in repayment if crops fail and insurance coverage. Over 750 million cards have been issued, aiming to improve farmers' access to formal credit sources.
The document summarizes key aspects of the Pradhan Mantri Fasal Bima Yojana (PMFBY) crop insurance scheme launched in India in 2016. Some key points:
- PMFBY aims to provide insurance coverage and financial support to farmers against crop failures from natural calamities at lower premium rates than previous schemes.
- It covers yields losses for notified crops as well as some post-harvest losses. Premium rates are 2% for kharif crops, 1% for rabi crops, and 5% for horticulture.
- The government will bear most of the costs, even up to 90% of the premium. Smart technology will be used to assess claims quickly
KCC aims to provide short term credit and term loans to farmers for cultivation and other agricultural needs. Key points of the KCC scheme include:
- KCC provides revolving cash credit for cultivation expenses, post-harvest storage, consumption needs, and term loans for investments like dairy animals or farm equipment.
- Eligible farmers include individuals, tenant farmers, sharecroppers, and joint liability groups.
- The limit is set for 5 years based on the scale of finance for expected crops plus escalation, with term loan components repayable over 9 years.
- Short term credit is repaid within 12 months while term loans are repaid in installments based on the activity and income generation.
The document discusses the Kisan Credit Card (KCC) scheme, which provides affordable credit to farmers in India. KCC was introduced in 1998 by the Government of India and is formulated by NABARD. It provides short-term credit for cultivation and other agricultural needs. Eligible farmers between 18-75 years can apply, with joint applications allowed for up to 5 people. Interest rates for KCC loans vary by bank but are typically between 7-13%. Insurance of up to Rs. 50,000 is provided for death and Rs. 25,000 for disability. The goal of KCC is to provide timely and adequate credit to farmers with minimal documentation.
The document provides information about the Kisan Credit Card scheme in India. It was introduced in 1998 by Indian banks to provide affordable credit to farmers. Key points include:
- The Kisan Credit Card provides term loans and meets agricultural credit needs. Eligible farmers can receive loans at a 7% interest rate.
- Features include interest subsidies to make loans effectively 4% annually, free ATM cards, crop insurance coverage, and loans assessed based on cost of cultivation.
- To apply, farmers need identity proof, address proof, and can visit their local participating bank branch. Repayment is only required after harvest.
The document discusses agricultural finance and the development of banking in India. It covers the following key points:
1. Agricultural finance deals with financial aspects of farm businesses, including credit needs, sources of funds, and individual farm financial management.
2. The development of banking in India involved the co-operative movement pre-independence, the nationalization of major banks post-independence to expand access to credit, and the liberalization of the sector to allow new private and foreign banks.
3. For agricultural credit to be effective, the credit needs of farmers must be fully met, credit must be easily accessible and available when needed, and interest rates charged to farmers should be relatively low.
Regional Rural Banks (RRBs) were established in India in 1975 to provide banking facilities to rural areas. They are jointly owned by the central government, state government and sponsoring commercial bank. RRBs focus on providing credit and banking services to small and marginal farmers, agricultural laborers and small businesses in rural areas. They accept deposits and offer loans, remittance facilities, and other banking services. However, over time RRBs have faced issues like inadequate finances, high loan defaults, and lack of coordination with other financial institutions which has impacted their effectiveness in developing rural regions of India.
Kisan Credit Card is a credit card provided by banks to farmers in India to enable them to access affordable credit. Studies have shown Kisan Credit Cards have increased crop yields, farm incomes, and cropping intensity for beneficiary farmers. One study found wheat crop yields increased by 82% and incomes increased by 75% due to access to credit through Kisan Credit Cards. Another study found beneficiary farmers had a higher cropping intensity of 233% compared to 208% for non-beneficiary farmers, and beneficiary farmers allocated more land to commercial crops. Access to credit through Kisan Credit Cards also enables farmers to purchase higher quantities of inputs like seeds, fertilizers and employ more farm labor, thereby increasing productivity and incomes.
The document discusses the Kisan Credit Card (KCC) scheme in India. KCC was introduced in 1998-99 by the Reserve Bank of India and NABARD to provide easy access to credit for farmers. It functions as a revolving cash credit facility with a limit set based on landholding and crops. Farmers can withdraw funds for agricultural inputs and household needs. Key features include flexibility in repayment if crops fail and insurance coverage. Over 750 million cards have been issued, aiming to improve farmers' access to formal credit sources.
The document summarizes key aspects of the Pradhan Mantri Fasal Bima Yojana (PMFBY) crop insurance scheme launched in India in 2016. Some key points:
- PMFBY aims to provide insurance coverage and financial support to farmers against crop failures from natural calamities at lower premium rates than previous schemes.
- It covers yields losses for notified crops as well as some post-harvest losses. Premium rates are 2% for kharif crops, 1% for rabi crops, and 5% for horticulture.
- The government will bear most of the costs, even up to 90% of the premium. Smart technology will be used to assess claims quickly
KCC aims to provide short term credit and term loans to farmers for cultivation and other agricultural needs. Key points of the KCC scheme include:
- KCC provides revolving cash credit for cultivation expenses, post-harvest storage, consumption needs, and term loans for investments like dairy animals or farm equipment.
- Eligible farmers include individuals, tenant farmers, sharecroppers, and joint liability groups.
- The limit is set for 5 years based on the scale of finance for expected crops plus escalation, with term loan components repayable over 9 years.
- Short term credit is repaid within 12 months while term loans are repaid in installments based on the activity and income generation.
The document discusses the Kisan Credit Card (KCC) scheme, which provides affordable credit to farmers in India. KCC was introduced in 1998 by the Government of India and is formulated by NABARD. It provides short-term credit for cultivation and other agricultural needs. Eligible farmers between 18-75 years can apply, with joint applications allowed for up to 5 people. Interest rates for KCC loans vary by bank but are typically between 7-13%. Insurance of up to Rs. 50,000 is provided for death and Rs. 25,000 for disability. The goal of KCC is to provide timely and adequate credit to farmers with minimal documentation.
The document provides information about the Kisan Credit Card scheme in India. It was introduced in 1998 by Indian banks to provide affordable credit to farmers. Key points include:
- The Kisan Credit Card provides term loans and meets agricultural credit needs. Eligible farmers can receive loans at a 7% interest rate.
- Features include interest subsidies to make loans effectively 4% annually, free ATM cards, crop insurance coverage, and loans assessed based on cost of cultivation.
- To apply, farmers need identity proof, address proof, and can visit their local participating bank branch. Repayment is only required after harvest.
The document discusses agricultural finance and the development of banking in India. It covers the following key points:
1. Agricultural finance deals with financial aspects of farm businesses, including credit needs, sources of funds, and individual farm financial management.
2. The development of banking in India involved the co-operative movement pre-independence, the nationalization of major banks post-independence to expand access to credit, and the liberalization of the sector to allow new private and foreign banks.
3. For agricultural credit to be effective, the credit needs of farmers must be fully met, credit must be easily accessible and available when needed, and interest rates charged to farmers should be relatively low.
Regional Rural Banks (RRBs) were established in India in 1975 to provide banking facilities to rural areas. They are jointly owned by the central government, state government and sponsoring commercial bank. RRBs focus on providing credit and banking services to small and marginal farmers, agricultural laborers and small businesses in rural areas. They accept deposits and offer loans, remittance facilities, and other banking services. However, over time RRBs have faced issues like inadequate finances, high loan defaults, and lack of coordination with other financial institutions which has impacted their effectiveness in developing rural regions of India.
District central cooperative banks (dccbNemi Verma
This document provides an overview of District Central Co-operative Banks (DCCBs) in India. DCCBs are located in district headquarters and have both individual and cooperative members. They have three sources of funds: share capital and reserves, public deposits, and loans from state cooperative banks. DCCBs provide credit and banking services to member cooperatives like primary agricultural credit societies. They also distribute short and long term loans to farmers, and oversee inspection of primary cooperatives to ensure compliance with banking regulations.
This document provides an overview of agricultural finance in India. It begins with the historical context of agricultural lending, originally done by moneylenders, and the subsequent development of institutional lenders after policy reforms in the 1930s. It then covers various classifications of agricultural finance based on time, purpose, security, and lender/borrower type. The main sources of agricultural credit in India are discussed, including cooperative societies, commercial banks, land development banks, microfinance institutions, and government schemes. Weaknesses in the rural credit system are outlined along with suggestions for improving access to institutional finance. Agency-wise credit data from 2005-2017 demonstrates the growing role of commercial banks in agricultural lending.
Regional Rural Banks were created to serve rural areas of India with basic banking and financial services and provide credit facilities to the agriculture and rural sectors. They are local level banking organizations operating in different Indian states, with equity divided between the Government of India, state governments, and sponsor banks. The first Regional Rural Bank called Prathama Bank was established in Moradabad in 1975 with Syndicate Bank as the lead sponsor bank.
The document discusses various aspects of agricultural finance in India, including sources and structures of credit for farmers. It notes that non-institutional sources like money lenders were the main source of agricultural credit historically but now account for only 25% of credit, while institutional sources like commercial banks, cooperatives, and regional rural banks provide most credit. It outlines credit needs of farmers based on time period and purpose, and describes the roles of major institutions in providing agricultural finance like NABARD, commercial banks, cooperatives, and regional rural banks.
The document provides an overview of the Pradhan Mantri Fasal Bima Yojana (PMFBY) crop insurance scheme in India. The key points are:
1) PMFBY aims to provide insurance coverage and financial support to farmers against crop failure from natural disasters and stabilize farmer incomes.
2) It covers food and oilseed crops as well as horticultural crops. Insurance is provided at the village level and premium subsidies are shared equally by central and state governments.
3) Farmers availing loans are covered compulsorily while others can opt-in voluntarily. Premium rates are 2-5% of the sum insured depending on the crop season. Claims are paid out based
This document discusses Primary Agricultural Credit Societies (PACS) in India. It begins by explaining that PACS operate at the village level and are the primary providers of short-term credit to farmers. It then defines PACS and discusses their organizational structure, capital sources, functions, and significance. The document notes that PACS play an important role in rural credit but also face issues like inadequate coverage, resources, and overdues. It concludes by suggesting ways for PACS to expand their services and strengthen rural economies, such as becoming multi-service centers.
Under the Lead Bank Scheme introduced in 1969:
1) Specific districts are allotted to commercial banks, which take the lead role in expanding banking and credit facilities.
2) As the lead bank, it is responsible for coordinating credit institutions to develop banking and provide credit in its allotted district.
3) The lead bank's functions include surveying potential banking areas, identifying credit needs, and formulating credit plans to generate employment and increase productivity and incomes.
The detail classification of credit in agriculture and need of credit in agriculture to Indian farmers.
ECON-242 Agriculture finance and co-operation.
By, Miss. Raksha Anil Hingankar.
Cooperative banks are financial institutions that are owned and operated by their members. They are formed through voluntary association for purposes of self-help and meeting members' financial needs. Cooperative banks are owned and controlled by their members who are both customers and owners. They provide banking services like loans and deposits to their members.
Crop insurance schemes have evolved in India over several decades to protect farmers from risks of crop failure. The current National Agricultural Insurance Scheme (NAIS) was launched in 1999 and makes crop insurance compulsory for loan-taking farmers. It covers lower premiums but has limitations like delayed claims, low compensation levels, and exclusion of certain risks. The Modified NAIS launched in 2010 uses actuarial premiums with government subsidies to make premiums affordable for farmers. It aims to address some issues but challenges remain in accurately designing insurance indices and assessing losses. Improving coverage levels, reducing assessment costs, and faster compensation are suggested to strengthen crop insurance for farmers.
The document summarizes several key agricultural schemes in India, including PM-KISAN, which provides yearly payments of Rs. 6,000 to small and marginal farmers, PM-Kisan Maandhan Yojana which offers an old age pension for small farmers, Pradhan Mantri Fasal Bima Yojana which provides crop insurance, and the Kisan Credit Card scheme which offers short term loans to farmers through banks. It also briefly outlines the Pradhan Mantri Krishi Sinchai Yojana for improving irrigation and the Rajiv Gandhi Kisan Nyay Yojana which provides Rs. 1,500 per acre for certain crops.
Regional Rural Banks (RRBs) are local banking organizations that operate in rural areas of India. They were created to provide basic banking services to rural communities. RRBs are jointly owned by the central government, state government, and sponsoring bank. They provide credit and banking facilities tailored to small farmers, laborers, and artisans. RRBs also carry out government operations like distributing pensions and wages. Their role is to promote development and ensure adequate credit flow in rural areas.
What is a regional rural bank ? What is the shareholding pattern of RRB? What are its role and functions ? The organizational structure of RRBs. List and objectives of RRBs. It is a presentation presented by 5 .
Agricultural credit is an important input for agricultural development programs in India. It is needed to purchase seeds, fertilizers, equipment and manage risks. However, small and marginal farmers often do not receive enough institutional credit. Some reasons for this are loose definitions that allow large companies access to subsidized loans, and non-compliance by banks with targets for lending to small farmers. Reforms are needed to streamline the system and better facilitate credit to small farmers through organizations and technology.
The document discusses the 3Rs of credit analysis - returns from investment, repayment capacity, and risk bearing ability. It provides details on evaluating each of these factors for determining the credit worthiness of farmer-borrowers. Returns depend on crop selection and management decisions. Repayment capacity is influenced by income, expenses, and other quantitative and qualitative factors. Risk bearing ability considers production, price, and personal risks. Measures to strengthen the 3Rs include adopting new technologies, managing resources and expenses effectively, and increasing farmer equity.
The document discusses rural credit in India. It explains that rural economies depend on credit between agricultural seasons as there is a long gap between sowing seeds and generating income. It then outlines the history of rural credit in India, including exploitative moneylenders prior to independence and the establishment of institutions like NABARD to regulate rural financing. Today, rural credit is provided by various institutions at lower interest rates. The document also categorizes rural credit into short term loans (under 1 year), medium term loans (2-5 years), and long term loans (5-20 years) and explains their purposes. Finally, it lists reasons for rural credit needs like long gestation periods of crops and funds required for inputs and personal expenses
The document discusses NABARD (National Bank for Agriculture and Rural Development), an apex development bank established in 1982 to facilitate credit flow for rural development in India. It outlines NABARD's vision, mission, organizational structure, roles and functions, which include providing refinance support and loans to rural banks and institutions, developing model agriculture projects, and building capacity through training. The document also describes some of NABARD's promotional efforts like providing technology support to NGOs and innovative microfinance projects.
Meaning, Features of RRBs, Objectives of Regional Rural Banks, Formation and Development of Regional Rural Banks, Reform process of RRBs, For Development/ Promotion/ & Effectiveness of RRBs., Working of RRBs, Functions of RRBs, Structure of Rural Credit
This document discusses various factors related to agribusiness and financing agriculture from a banker's perspective. It covers key topics like determining viable kisan credit card limits for farmers based on their land size and crop plans, following up with farmers to ensure loans are used as intended, important crop seasons and associated crops in India, factors influencing viability and productivity of various agricultural projects, and guidelines around financing activities like dairy, poultry, farm mechanization, horticulture and more. Key considerations discussed include location suitability, farmer experience, availability of inputs and market access, as well as financial projections of costs versus income.
Dairy farming provides small farmers with supplemental income and employment. It utilizes agricultural byproducts to feed livestock and produces manure as fertilizer. A typical small dairy farm with 2 buffaloes can earn a farmer around Rs. 6,000-9,000 per year after expenses. Dairy farming plays an important role in India as most milk is produced by small farms and landless laborers. There is also potential to increase milk production to meet domestic demand. Banks provide loans to support dairy farming which are assessed for technical feasibility and economic viability.
District central cooperative banks (dccbNemi Verma
This document provides an overview of District Central Co-operative Banks (DCCBs) in India. DCCBs are located in district headquarters and have both individual and cooperative members. They have three sources of funds: share capital and reserves, public deposits, and loans from state cooperative banks. DCCBs provide credit and banking services to member cooperatives like primary agricultural credit societies. They also distribute short and long term loans to farmers, and oversee inspection of primary cooperatives to ensure compliance with banking regulations.
This document provides an overview of agricultural finance in India. It begins with the historical context of agricultural lending, originally done by moneylenders, and the subsequent development of institutional lenders after policy reforms in the 1930s. It then covers various classifications of agricultural finance based on time, purpose, security, and lender/borrower type. The main sources of agricultural credit in India are discussed, including cooperative societies, commercial banks, land development banks, microfinance institutions, and government schemes. Weaknesses in the rural credit system are outlined along with suggestions for improving access to institutional finance. Agency-wise credit data from 2005-2017 demonstrates the growing role of commercial banks in agricultural lending.
Regional Rural Banks were created to serve rural areas of India with basic banking and financial services and provide credit facilities to the agriculture and rural sectors. They are local level banking organizations operating in different Indian states, with equity divided between the Government of India, state governments, and sponsor banks. The first Regional Rural Bank called Prathama Bank was established in Moradabad in 1975 with Syndicate Bank as the lead sponsor bank.
The document discusses various aspects of agricultural finance in India, including sources and structures of credit for farmers. It notes that non-institutional sources like money lenders were the main source of agricultural credit historically but now account for only 25% of credit, while institutional sources like commercial banks, cooperatives, and regional rural banks provide most credit. It outlines credit needs of farmers based on time period and purpose, and describes the roles of major institutions in providing agricultural finance like NABARD, commercial banks, cooperatives, and regional rural banks.
The document provides an overview of the Pradhan Mantri Fasal Bima Yojana (PMFBY) crop insurance scheme in India. The key points are:
1) PMFBY aims to provide insurance coverage and financial support to farmers against crop failure from natural disasters and stabilize farmer incomes.
2) It covers food and oilseed crops as well as horticultural crops. Insurance is provided at the village level and premium subsidies are shared equally by central and state governments.
3) Farmers availing loans are covered compulsorily while others can opt-in voluntarily. Premium rates are 2-5% of the sum insured depending on the crop season. Claims are paid out based
This document discusses Primary Agricultural Credit Societies (PACS) in India. It begins by explaining that PACS operate at the village level and are the primary providers of short-term credit to farmers. It then defines PACS and discusses their organizational structure, capital sources, functions, and significance. The document notes that PACS play an important role in rural credit but also face issues like inadequate coverage, resources, and overdues. It concludes by suggesting ways for PACS to expand their services and strengthen rural economies, such as becoming multi-service centers.
Under the Lead Bank Scheme introduced in 1969:
1) Specific districts are allotted to commercial banks, which take the lead role in expanding banking and credit facilities.
2) As the lead bank, it is responsible for coordinating credit institutions to develop banking and provide credit in its allotted district.
3) The lead bank's functions include surveying potential banking areas, identifying credit needs, and formulating credit plans to generate employment and increase productivity and incomes.
The detail classification of credit in agriculture and need of credit in agriculture to Indian farmers.
ECON-242 Agriculture finance and co-operation.
By, Miss. Raksha Anil Hingankar.
Cooperative banks are financial institutions that are owned and operated by their members. They are formed through voluntary association for purposes of self-help and meeting members' financial needs. Cooperative banks are owned and controlled by their members who are both customers and owners. They provide banking services like loans and deposits to their members.
Crop insurance schemes have evolved in India over several decades to protect farmers from risks of crop failure. The current National Agricultural Insurance Scheme (NAIS) was launched in 1999 and makes crop insurance compulsory for loan-taking farmers. It covers lower premiums but has limitations like delayed claims, low compensation levels, and exclusion of certain risks. The Modified NAIS launched in 2010 uses actuarial premiums with government subsidies to make premiums affordable for farmers. It aims to address some issues but challenges remain in accurately designing insurance indices and assessing losses. Improving coverage levels, reducing assessment costs, and faster compensation are suggested to strengthen crop insurance for farmers.
The document summarizes several key agricultural schemes in India, including PM-KISAN, which provides yearly payments of Rs. 6,000 to small and marginal farmers, PM-Kisan Maandhan Yojana which offers an old age pension for small farmers, Pradhan Mantri Fasal Bima Yojana which provides crop insurance, and the Kisan Credit Card scheme which offers short term loans to farmers through banks. It also briefly outlines the Pradhan Mantri Krishi Sinchai Yojana for improving irrigation and the Rajiv Gandhi Kisan Nyay Yojana which provides Rs. 1,500 per acre for certain crops.
Regional Rural Banks (RRBs) are local banking organizations that operate in rural areas of India. They were created to provide basic banking services to rural communities. RRBs are jointly owned by the central government, state government, and sponsoring bank. They provide credit and banking facilities tailored to small farmers, laborers, and artisans. RRBs also carry out government operations like distributing pensions and wages. Their role is to promote development and ensure adequate credit flow in rural areas.
What is a regional rural bank ? What is the shareholding pattern of RRB? What are its role and functions ? The organizational structure of RRBs. List and objectives of RRBs. It is a presentation presented by 5 .
Agricultural credit is an important input for agricultural development programs in India. It is needed to purchase seeds, fertilizers, equipment and manage risks. However, small and marginal farmers often do not receive enough institutional credit. Some reasons for this are loose definitions that allow large companies access to subsidized loans, and non-compliance by banks with targets for lending to small farmers. Reforms are needed to streamline the system and better facilitate credit to small farmers through organizations and technology.
The document discusses the 3Rs of credit analysis - returns from investment, repayment capacity, and risk bearing ability. It provides details on evaluating each of these factors for determining the credit worthiness of farmer-borrowers. Returns depend on crop selection and management decisions. Repayment capacity is influenced by income, expenses, and other quantitative and qualitative factors. Risk bearing ability considers production, price, and personal risks. Measures to strengthen the 3Rs include adopting new technologies, managing resources and expenses effectively, and increasing farmer equity.
The document discusses rural credit in India. It explains that rural economies depend on credit between agricultural seasons as there is a long gap between sowing seeds and generating income. It then outlines the history of rural credit in India, including exploitative moneylenders prior to independence and the establishment of institutions like NABARD to regulate rural financing. Today, rural credit is provided by various institutions at lower interest rates. The document also categorizes rural credit into short term loans (under 1 year), medium term loans (2-5 years), and long term loans (5-20 years) and explains their purposes. Finally, it lists reasons for rural credit needs like long gestation periods of crops and funds required for inputs and personal expenses
The document discusses NABARD (National Bank for Agriculture and Rural Development), an apex development bank established in 1982 to facilitate credit flow for rural development in India. It outlines NABARD's vision, mission, organizational structure, roles and functions, which include providing refinance support and loans to rural banks and institutions, developing model agriculture projects, and building capacity through training. The document also describes some of NABARD's promotional efforts like providing technology support to NGOs and innovative microfinance projects.
Meaning, Features of RRBs, Objectives of Regional Rural Banks, Formation and Development of Regional Rural Banks, Reform process of RRBs, For Development/ Promotion/ & Effectiveness of RRBs., Working of RRBs, Functions of RRBs, Structure of Rural Credit
This document discusses various factors related to agribusiness and financing agriculture from a banker's perspective. It covers key topics like determining viable kisan credit card limits for farmers based on their land size and crop plans, following up with farmers to ensure loans are used as intended, important crop seasons and associated crops in India, factors influencing viability and productivity of various agricultural projects, and guidelines around financing activities like dairy, poultry, farm mechanization, horticulture and more. Key considerations discussed include location suitability, farmer experience, availability of inputs and market access, as well as financial projections of costs versus income.
Dairy farming provides small farmers with supplemental income and employment. It utilizes agricultural byproducts to feed livestock and produces manure as fertilizer. A typical small dairy farm with 2 buffaloes can earn a farmer around Rs. 6,000-9,000 per year after expenses. Dairy farming plays an important role in India as most milk is produced by small farms and landless laborers. There is also potential to increase milk production to meet domestic demand. Banks provide loans to support dairy farming which are assessed for technical feasibility and economic viability.
This document provides an overview of the Agri-Infrastructure Fund (AIF) scheme in India. It discusses the need for the scheme due to issues like post-harvest losses, lack of infrastructure, and dependence on intermediaries. It outlines the eligible activities and beneficiaries under AIF, which include post-harvest management projects, supply chain infrastructure, and more. It also describes the application process, available financing support like interest subvention and credit guarantees, convergence with other schemes, and common myths about the scheme's eligibility requirements.
Agriculture contributes around 15% to India's GDP but employs over 50% of the population. Rural areas are home to over 70% of India's population, many of whom are poor farmers dependent on agriculture. The government prioritizes raising agricultural productivity to reduce poverty. Formal agricultural financing through banks has grown over time from money lenders to include cooperative banks, nationalized banks, regional rural banks, and now a multi-agency approach including public, private, and foreign banks. Key agricultural financing products include crop loans and Kisan Credit Cards (KCC), which consolidate short and long-term credit needs. However, many small and marginal farmers still lack adequate access to agricultural credit.
India prospers if rural areas prosper. Through its credit and development initiatives, NABARD ensures that India's food needs are met season after season and year after year by focusing on rural development. NABARD provides refinancing, direct lending, and development support to promote sustainable agriculture and rural development. It works to strengthen rural financial institutions and ensure access to credit for farmers and rural communities.
Presentation during the Bureau of Agricultural Research (BAR) Seminar Series on January 25, 2018 at RDMIC Bldg., cor. Visayas Ave., Elliptical Rd., Diliman, Quezon City
National project on organic farming for finance, subsidy & project related ...Radha Krishna Sahoo
The document provides operational guidelines for a capital investment subsidy scheme in India to promote the production of organic inputs like biofertilizers, biopesticides, and fruit/vegetable market waste compost. The scheme aims to increase availability and quality of organic inputs to reduce dependence on chemical fertilizers and pesticides. It offers subsidies of 25-33% of project costs depending on the type of production unit, to encourage setting up new commercial units or expanding existing ones. The guidelines describe eligibility criteria, subsidy amounts and release process, project requirements, financing patterns, and monitoring and reporting procedures.
1. The document discusses various aspects of agricultural credit such as purpose, time period, security, generation of surplus funds, approach, and principles of credit.
2. It categorizes agricultural credit based on purpose as production credit, investment credit, marketing credit, and consumption credit. It also differentiates credit based on time period as short-term, medium-term, and long-term credit.
3. Security for agricultural loans includes secured loans against land mortgage, collateral security against crops/livestock, and personal security based on character and repaying capacity without tangible assets.
The document provides revised operational guidelines for the Gramin Bhandaran Yojana scheme effective from June 26, 2008. The key points are:
1) The scheme aims to provide scientific storage facilities and related infrastructure for small farmers to store agricultural produce and inputs. This allows farmers to get better prices and avoid distress sales.
2) Eligible entities can construct or renovate rural godowns between 100-10,000 tonnes capacity. Subsidies of 15-33% are provided depending on the owner category and location.
3) Godowns must meet technical specifications for structural stability and storage conditions. Projects must be credit-linked to eligible lending institutions.
The document discusses concerns from agriculturists and farmers' organizations about Pakistan's new budget. They see the allocations for agriculture as too low given the importance of the sector. Specific issues raised include the nominal allocation for biotechnology and seed production, inadequate funding for repairing flood damaged irrigation infrastructure, and the negative impacts of taxes like the 16% GST. Farmers want more priority given to rehabilitating canals and drains and increasing credit available to agriculture in Sindh province.
The Union Budget of 2010-11 aimed to support India's Vision 2020 by pursuing double-digit economic growth, making development more inclusive, and strengthening government systems. Key aspects included increased allocations to agriculture, infrastructure, education, and health. Direct taxes were modestly reduced while indirect taxes like excise duties were partially increased. The budget aimed to achieve a net revenue gain of Rs. 20,500 crore through measures affecting direct and indirect taxes.
The document outlines priority sector lending targets and guidelines in India from 1968 to 2015. Key points include:
- Targets for priority sector advances have increased over time, currently at 40% of adjusted net bank credit.
- Priority sectors include agriculture (18% target), micro, small and medium enterprises (20% target), weaker sections (10%), and others.
- Agricultural lending includes loans to small/marginal farmers, agriculture infrastructure, and ancillary activities.
- Revised guidelines in 2015 set targets to be achieved in phases for foreign banks with less than 20 branches.
The document discusses various agricultural credit schemes and issues in India. It notes that the volume of agricultural credit is insufficient given rising input costs, and farmers often rely on informal credit at high interest rates due to inadequate banking infrastructure and outreach. It then describes various types of agricultural credit (short, medium, and long term), and key schemes like Kisan Credit Cards which provide loans for inputs, production needs, and investment. Requirements, application processes, and other details are provided for KCC and other financing programs aimed at improving access to affordable credit for farmers.
Monetary Policy Framework 2077/78 in English | माैद्रिक नीति २०७७/७८UniversallyInfo
Monetary Policy 2021/22 of Nepal
Nepal Rastra Bank has published monetary policy for the Fiscal Year 2020/21 with a major focus on reviving the economy following the effects of COVID-19 pandemic.
https://www.youtube.com/channel/UC24pnkwkU4DhecGBjJl_1XQ
NHB Credit Linked Back ended Subsidy Schemes
Capital Investment subsidy scheme for Construction/expansion/modernization of Cold Storage and Storage for Horticulture Products.
This budget summary provides an overview of the key focus areas and allocations of the Indian Union Budget 2016-17 across rural, infrastructure and industry sectors. The budget aimed to double farm incomes by 2022 through increased allocations to agriculture and rural development. It also sought to boost rural employment and infrastructure. Key rural proposals included crop insurance, irrigation, soil health and credit availability. Infrastructure development focused on reviving public-private partnerships and boosting transportation. The industry sector saw benefits for small businesses, start-ups, affordable housing and MSMEs. However, the budget lacked focus on external trade and factor market reforms.
karnataka state budget 2012-13 Presented by Bharat R SBharat Yashu
The document provides information about budgets in general and governmental budgets specifically. It defines what a budget is and describes the different types of governmental budgets, including balanced budgets where revenue equals expenditure, surplus budgets where revenue exceeds expenditure, and deficit budgets where expenditure exceeds revenue. The document then provides details about Karnataka, India's budget for 2012-13, including the total budget size, sources of receipts and areas of expenditure. It also outlines sector-specific allocations and plans for agriculture, irrigation, and other areas.
This document outlines regulations for agriculture financing in Pakistan. It discusses the importance of agriculture to Pakistan's economy and employment. It then provides definitions for key terms related to agriculture financing. The general regulations section establishes rules for assessing borrower repayment capacity, developing comprehensive agriculture financing policies, using standardized documents, expeditious processing of applications, exposure limits, maximum unsecured financing amounts, repayment schedules and grace periods, ensuring proper loan use, obtaining credit reports, and know-your-customer requirements. Specific regulations are then provided for various types of agriculture loans including inputs, development, machinery/equipment, and livestock. Regulations address loan terms, security, insurance, classification, and provisioning. Finally, regulations for corporate farming loans address linking financial indicators
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Kisan Credit Card | किसान क्रेडिट कार्ड | KCC Scheme and Loan Limit Assessment
1. किसान क्रे डिट िािड स्िीम िी पूर्ड जानिारी
और ऋर् सीमा (Loan Limit) िा ननर्ाडरर्
Banking
Awareness
JAIIB / CAIIB
Exam
गााँव बढ़े तो देश बढ़े
2. INTRODUCTION
KCC scheme was first introduced during
the year 1998 for farmers on the basis of
their holdings by the banks for purchase
of agriculture inputs such as seeds,
fertilizers, pesticides etc. and draw cash
for their production needs. .
The scheme was further extended for the
investment credit requirement of farmers
viz. allied and non-farm activities in the
year 2004.
3. IMPLEMENTATION OF KCC
It has been modified on recommendation of a
Working Group under the chairmanship of by Shri T.
M. Bhasin, Chairman & Managing, Indian Bank to
review the scheme in 2012.
In the Budget 2018-19 the Union Government had
announced their decision to extend the facilities of
Kisan Credit Card (KCC) to Animal Husbandry
farmers and Fisheries (AH & F) to help them meet
their working capital requirements.
The revised KCC Scheme is to be Implemented by
Commercial Banks, RRBs and cooperatives.
4. KCC aims to credit support to the farmers for their cultivation & other
needs as indicated below:
a. Short term credit requirements for cultivation of crops including fodder
crops;
b. Post harvest expenses;
c. Produce marketing loan;
d. Consumption requirements of farmer house hold;
e. Working capital for Maintenance of farm assets and allied activities;
f. Investment credit requirement for agriculture & allied activities, pump
sets, sprayers, dairy, animals husbandry etc.
Note: The aggregate of components ‘a’ to ‘e’ above will form the short
term credit limit portion and the aggregate of components under ‘f’ will
form the long term credit limit portion.
5. ELIGIBILITY
Farmers – Individuals or Joint Borrowers.
Tenant Farmers, Oral Lessees and Share
Croppers.
SHGs or JLGs of farmers including tenant
farmers, share croppers etc.
6. SCHEME NORMS
Type of Facility:
a) Cash Credit: Revolving Cash Credit to be sanctioned where total credits during 12
months period should be equal or more than the total debits in the account.
b) Term Loan: Term loan for investment credit.
Margin:
a) Crop Loan:- No separate margin insisted as the margin is in-built while fixing of
scale of finance.
b) Term Loan:-Up to Rs. 1.60 lakh: NIL, Above Rs. 1.60 lakh: 15 -25 %.
Security: Only Primary security for limit up to Rs. 1.60 lakh in general & under tie
up arrangement up to Rs. 3.00 lakh.
a) Primary: Hypothecation of standing crops.
b) Collateral: Mortgage of agricultural land or on-line charge creation.
7. RATE OF INTEREST &
INTEREST SUBVENTION
Short term crop loan up to Rs. 3,00,000/- at 7% p.a.
Interest Subvention of 2% p.a. will be available to banks on the KCC
Scheme. As per RBI communication Ref No. RPCD:FSD:BC:71/
05.04.02/2013-14 dated 04/12/2013 for computation of Interest
subvention on KCC limit, only following activities are considered.
a)Short term credit requirements for cultivation of crops,
b)Post harvest expenses.
Additional Interest subvention @3% will be available to the prompt
paying farmers from the date of disbursement of crop loan to the actual
date of repayment by farmers or up to date fixed by bank for repayment
of crop loan whichever is earlier.
8. A flexible Limit of Rs. 10,000/- to Rs. 50,000/- as FLEXI KCC
based on the land holding & crop grown Should include short
term credit requirement as Crop Cultivation, Post Harvest
Warehouse Storage, Other Farm Expenses, Consumption
Needs Etc. and,
Small Term Loan Investments as Purchase of Farm
Equipments, Mini Dairy, Back Yard Poultry Etc.
Limit to be fixed as per assessment of Branch Manager
without relating it to the value of land.
Composite KCC Limit : FOR 5 YEARS
FIXATION OF KCC LIMIT FOR MARGINAL FARMER
9. Cost of cultivation as per revised scale of finance
(Scale of finance for the crop, as decided by District
level Technical Committee) X Extent of area
cultivated.
Add 10% of the limit towards post
harvest/household expenses/consumption needs.
Add 20% towards farm maintenance.
Total crop loan limit for first year.
ASSESSMENT OF KCC LIMIT
FOR FARMERS
10. Add 10% of first year limit towards cost escalation/increase in scale of
finance-------2
Add 10% of second year limit towards cost escalation/increase in scale
of finance-------3
Add 10% of third year limit towards cost escalation/increase in scale
of finance-------4
Add 10% of fourth year limit towards cost escalation/increase in scale
of finance-------5
LOAN LIMIT FOR NEXT 5 YEARS
11. •Total crop loan limit-------------I
•Add Term Loan component-------II
•Maximum permissible limit/KCC limit = I+II
MAXIMUM PERMISSIBLE LIMIT UNDER KCC
12. ILLUSTRATION
(Marginal farmer raising single crop in a year)
Assumptions :
Land holding : 1 acres
Cropping pattern : Paddy -1 acres (Scale of finance plus crop
insurance per acre Rs. 11,000/-)
There is no change in cropping pattern for 5 years
Investment /Allied Activities:
One non descript Milch Animal (Unit cost: Rs. 15,000/-)
13. ILLUSTRATION OF KCC LIMITS
Year Crop Loan Component Amount
1 Cost of cultivation of 1 acres of Paddy
Add: 10% towards post harvest/household expenses/consumption
Add 20% towards farm maintenance
Total Crop Loan Limit for 1st year
Rs. 11000/-
Rs. 1100/-
Rs. 2200/-
Rs 14300/-
2 Loan Limit for 2nd year
Add: 10% of the limit towards cost escalation/increase in scale of
finance (10% of 14300/i.e.Rs. 1430/- )
Rs. 1430/- +
Rs. 15730/-
3 Loan Limit for 3rd year
Add: 10% of the limit towards cost of escalation/increase in scale of
finance (10% of 15730/-i.e.Rs. 1573 or Rs. 1570/-)
Rs. 1570/-+
Rs. 17300/-
4 Loan limit for 4th year
Add: 10% of the limit towards cost of escalation in scale of finance
(10% of 17300/-i.e.Rs. 1730/-
Rs. 1730/-+
Rs. 19030/--
14. ILLUSTRATION OF KCC LIMITS
Year Crop Loan Amount
5 Loan Limit for 5th year
Add: 10% of the limit towards cost of
escalation in scale of finance (10% of
19030/-i.e.Rs. 1903 or Rs. 1900/-)
Rs. 1900/-+
Rs. 19030/- =
Rs. 20930/-
Say Rs.21000/- (A)
ii. Term Loan
Component
1st year : cost of 1 Milch animal Rs. 15000/- (B)
Maximum Permissible limit / KCC Limit A+B = Rs. 36000/-
Note Drawing limit will be reduced every year
on repayment schedule of term loan(s)
availed and withdrawals will be allowed
up to the drawing limit.
Application & documents to
be obtained for full limit for 5
years. Of course , Proposal to
be prepared for full limit .
15. ILLUSTRATION
(Farmer raising multiple crops in a year)
Assumptions :
a) Land holding : 2 acres
b) Cropping pattern
Paddy-1 acre (scale of finance plus crop insurance per acre: Rs. 11000/-)
Sugarcane- 1 acre (scale of finance plus crop insurance per acre: Rs.
22000/-)
c) Investment /Allied Activities:
I. Establishment of 1+1 Dairy Unit in 1st year (unit cost: Rs. 20000/- per
animal).
II. Replacement of Pump set in 3rd year (unit Cost: Rs. 30000/-).
16. ILLUSTRATION OF KCC LIMITS
Year Crop Loan Component Amount
1 Cost of cultivation of 1 acre of Paddy and 1 acre of sugarcane ( 11000 + 22000)
Add: 10% towards post harvest/household expenses/consumption
Add 20% towards farm maintenance
Total Crop Loan Limit for 1st year.
Rs. 33000/-
Rs. 3300/-
Rs. 6600/-
Rs. 42900/-
2 Loan Limit for 2nd year
Add: 10% of the limit towards cost escalation/increase in scale of finance(10%
of Rs. 42900/- i.e. Rs. 4300/-)
Rs. 4300/- +
Rs. 47200/-
3 Loan Limit for 3rd year
Add: 10% of the limit towards cost of escalation/increase in scale of finance
(10% of Rs. 47200/- i.e. Rs. 4700/-)
Rs. 4700/-+
Rs. 51900/-
4 Loan limit for 4th year Add: 10% of the limit towards cost of escalation in scale
of finance (10% of Rs. 51900/- i.e. Rs. 5200/-)
Rs. 5200/-+
Rs. 57100/--
17. ILLUSTRATION OF KCC LIMITS
SR NO Crop Loan Amount
5 Loan Limit for 5th year
Add: 10% of the limit towards cost of escalation in
scale of finance (10% of 57100/-i.e.Rs.5700/-)
Rs. 5700/-
Rs. 57100/-
Rs. 62800/-
Say Rs.63000/- (A)
ii. Term Loan
Component
1st year : cost of 1+1 Dairy Unit
3rd year : Replacement of Pump set
Rs. 40000/-
Rs. 30000/-
Rs. 70000/- (B)
Maximum Permissible limit/KCC Limit A+B = Rs. 133000/-
Note Drawing limit will be reduced every year on
repayment schedule of term loan(s) availed and
withdrawals will be allowed up to the drawing
limit.
Application & documents to
be obtained for full limit for 5
years. Of course , Proposal
to be prepared for full limit .
18. ILLUSTRATION
(Other farmer raising multiple crops in a year)
Assumptions :
a) Land holding : 10 acres
b) Cropping pattern:
Paddy-5 acres (scale of finance plus crop insurance per acre: Rs. 11000/-)
Followed by groundnut-5 acres (scale of finance plus crop insurance per
acre: Rs. 10,000/-)
Sugarcane- 5 acres (scale of finance plus crop insurance per acre:
Rs. 22,000/-)
c) Investment /Allied Activities:
I. Establishment of 2+2 Dairy Unit in 1st year (Unit cost: Rs. 100,000/-)
II. Purchase of Tractor in 1st year (unit Cost: Rs. 600,000/-)
19. ILLUSTRATION OF KCC LIMITS
Year Crop Loan Component Amount
1 Cost of cultivation of 5 acres of Paddy, 5 acres of groundnut and 5 acres of
sugarcane( 55000 + 50000 + 110000)
Add: 10% towards post harvest/household expenses/consumption
Add 20% towards farm maintenance
Total Crop Loan Limit for 1st year
Rs. 215000/-
Rs. 21500/-
Rs. 43000/-
Rs. 279500/-
2 Loan Limit for 2nd year
Add: 10% of the limit towards cost escalation/increase in scale of finance
(10% of Rs. 279500/- i.e. Rs.27950/- )
Rs. 27950/- +
Rs. 307450/-
3 Loan Limit for 3rd year
Add: 10% of the limit towards cost of escalation/increase in scale of finance
(10% of Rs. 307450/- i.e. Rs.30750/-)
Rs. 30750/-+
Rs. 338200/-
4 Loan limit for 4th year
Add: 10% of the limit towards cost of escalation in scale of finance (10% of
Rs. 338200/- i.e. Rs.33800/-)
Rs. 33800/-+
Rs. 372000/--
20. ILLUSTRATION OF KCC LIMITS
Year Crop Loan Amount
5 Loan Limit for 5th year
Add: 10% of the limit towards cost of
escalation in scale of finance (10% of
372000/-i.e.Rs.37200/-)
Rs. 37200/-+
Rs. 372000/- =
Rs. 409200/-
Say Rs. 409000/- (A)
ii. Term Loan
Component
1st year : cost of 2+2 Dairy Unit
Purchase of Tractor
Total Term Loan
Rs. 100000/-
Rs. 600000/-
Rs. 700000/- (B)
Maximum Permissible limit/KCC Limit A+B = Rs. 11,09,000/-
Note Drawing limit will be reduced every year on
repayment schedule of term loan(s) availed
and withdrawals will be allowed up to the
drawing limit.
Application & documents to
be obtained for full limit for 5
years. Of course , Proposal to
be prepared for full limit .
21. ISSUE OF ELECTRONIC
KISAN CREDIT CARDS (ATM)
All new KCC must be issued as smart card cum debit card as laid
down in Policy.
Further, at the time of renewal of existing KCC; farmers must be
issued smart card cum debit card.
The short term credit limit and the term loan limit are two distinct
components of the aggregate KCC limit bearing different rates of
interest and repayment periods.
Until a composite card could be issued with appropriate software
to separately account transactions in the sub limits, two separate
electronic cards may be issued for all new/renewed cards.
22. A. Operation through Branch;
B. Operation through Cheque facility;
C. With drawl through ATM/ Debit Card;
D. Operations through BC and USBs;
E. Operation through POS at Sugar Mills/ Contract Farming;
Companies. Especially in tie up advances;
F. Operation through POS available with input dealers;
G. Mobile based transfer transactions at agriculture input;
dealers and mandies.
DISBURSEMENT OF SHORT TERM CREDIT
23. Short term components from A to E
liquidated in 12 months. No need to
bring zero balance at any point of
time.
Term loan component normally
repayable with in 9 years in installments
as fixed based on activity / income
generation.
REPAYMENT
24. FEATURES OF KCC
Besides the mandatory crop insurance, the KCC holder
should have the option to avail the benefit of any type of
asset insurance, accident insurance (including PAIS), health
insurance (wherever product is available) and have
premium paid through his/her KCC account.
Premium has to be borne by the farmer/bank according to
the terms of the scheme. Farmer beneficiaries should be
made aware of the insurance cover available and their
consent (except in case of crop insurance, it being
mandatory) is to be obtained, at the application stage itself.
25. Interest subvention for prompt repayment as advised
by GOI/State Government from time to time.
On time documentation for full amount of aggregate
limit.
Simple declaration about crops raised / proposed from
II year onwards.
No bank’s charges as PPC / DOC etc. up to Rs. 3.00
lakhs card limit.
KCC short term limit cum SB a/c, fetch interest for
credit balance at SB interest rate.
FEATURES OF KCC