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MAIN ADV-72 /2014-15

SUB

RuralLending-21

a
CO: RBD

DT.

21-08-2014

FILE M-2

S- 201

Master circular on Revised Kisan Credit Card (KCC) Scheme


Our Bank issued Master circular on Indian Bank Kisan Credit Card Scheme way back in the
year 2003 (Ref: ADV.160/2002-03 dated 31.03.2003). Further, we have communicated the
Kisan Credit Card Modification of guidelines vide circular ADV.136/2003-04 dated
23.02.2004.
During November 2011, the Department of Financial Services, Ministry of Finance,
Government of India constituted a Working Group under the Chairmanship of
Shri T.M.Bhasin, our Chairman and Managing Director, comprising members from Reserve
Bank of India, NABARD and National Payments Corporation of India (NPCI) to review the
existing KCC scheme and suggest changes to make it a Smart Card cum Debit Card.
The recommendations of the Working Group have been accepted by the Government of India.
Based on that, NABARD vide circular Ref No. 71/PCD -04 /2011-12 dated 30.03.2012 and
Reserve Bank of India vide circular Ref No RPCD.FSD.BC.No.77/05.05.09/2011-12 dated
11.05.2012 have communicated the revised Kisan Credit Card (KCC) Scheme for
implementation by all banks.
Our Board in the meeting held on 11.05.2012, adopted the revised KCC scheme and the
guidelines for implementation by our branches.
The salient features of the guidelines include the following:

Assessment of crop loan component based on the scale of finance for the crop +
insurance premium x extent of area cultivated + 10% of the limit towards post-harvest
/ household/consumption requirements + 20% of limit towards maintenance
expenses of farm assets.

Flexi KCC with simple assessment prescribed for Marginal Farmers.

Validity of KCC for 5 years.

For crop loans, no separate margin need to be insisted as the margin is in-built in
scale of finance.
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ADV: 72 / 2014-15 dated 21/08/2014

CO: RBD

Master circular on Revised Kisan Credit Card (KCC) Scheme

No withdrawal in the account to remain outstanding for more than 12 months; no


need to bring the debit balance in the account to zero at any point of time.
Interest subvention /incentive for prompt repayment to be available as per the
Government of India and / or State Government norms.
No processing fee up to a limit of Rs. 3.00 lakh
One time documentation at the time of first availment and thereafter simple
declaration (about crops raised/ proposed) by farmer.
KCC cum SB account to be provided to farmers instead of having two separate
accounts. The credit balance in KCC cum SB accounts is to be allowed to fetch
interest at savings bank rate.
Disbursement to be effected through various delivery channels, including ICT driven
channels like ATM/ PoS/ Mobile handsets.

Operational guidelines of the revised Kisan Credit Card (KCC) scheme including illustrations
on assessment of KCC limit are given in annexure I. Besides, additional guidelines on
documentation and product codes are given in annexure II for guidance of branches.
Action points for various functionaries to implement the scheme are given in annexure III.
All the branches are advised to ensure
ensure 100% coverage of all eligible farmers in their
operational area under the revised KCC Scheme.
Scheme.
Zonal Managers should personally monitor to ensure smooth and time bound implementation
of the revised scheme.
All staff members should be enlightened about the revised scheme with a view to popularize
the same among the farming community and participate in the process of transformation of
rural credit delivery mechanism.

E.SELVASEKARAN
DEPUTY GENERAL MANAGER (RBD/FI)

ADV: 72 / 2014-15 dated 21/08/2014

CO: RBD

Master circular on Revised Kisan Credit Card (KCC) Scheme


Annexure I
Kisan Credit Card (KCC)
(KCC) scheme - Revised operational guidelines

1.

Purpose:

a.
b.
c.
d.
e.

To meet the short term credit requirements for cultivation of crops

f.

Investment credit requirements for agriculture and allied activity like pumpsets,
sprayers, dairy animals etc

Post harvest expenses


Produce Marketing loan
Consumption requirements of farmer households
Working capital for maintenance of farm assets and activities allied to agriculture, like
dairy animals, inland fisheries etc

Note:
Note The aggregate of components a. to e.
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.
2.

Eligibility:

a.
b.
c.

All Farmers Individuals / Joint borrowers who are owner cultivators

3.

Fixation of credit limit / Loan amount:

Tenant Farmers, Oral Lessees & Share Croppers

Self Help Groups or Joint Liability Groups of Farmers including tenant farmers, share
croppers etc

The credit limit under the Kisan Credit Card may be fixed as under::
3.1.

All farmers other than marginal farmers:

a.

For farmers
farmers raising single crop in a year

Short term limit:


Scale of finance for the crop (as decided by District Level Technical Committee) x Extent of
area cultivated + 10% of limit towards post-harvest / household / consumption requirements
+ 20% of limit towards repairs and maintenance expenses of farm assets + crop insurance,
PAIS and asset insurance.
3.1.a.1.
Term loans for investments towards land development, minor Irrigation,
purchase for farm equipments and allied agricultural activities:

ADV: 72 / 2014-15 dated 21/08/2014

CO: RBD

Master circular on Revised Kisan Credit Card (KCC) Scheme


The quantum of credit for term and working capital limit for agricultural and allied activities
etc., is to be arrived at based on the unit cost of the asset/s proposed to be acquired by the
farmer, the allied activities already being undertaken on the farm, repayment capacity vis-avis total loan burden devolving on the farmer, including existing loan obligations.
3.1.a.2.
The Kisan Credit Card limit is to be arrived as under:
First year limit for crop cultivation purpose arrived at as above plus 10% of the limit towards
cost escalation / increase in scale of finance for every successive year ( 2nd, 3rd, 4th and 5th
year) and estimated Term loan component for the tenure of Kisan Credit Card i.e. five years.
b.
For farmers raising more than one crop in a year, the limit is to be fixed as
above depending upon the crops cultivated as per proposed cropping pattern for the first
year and an additional 10% of the Limit towards cost escalation / increase in scale of finance
for every successive year (2nd, 3rd, 4th and 5th year). It is assumed that the farmer adopts the
same cropping pattern for the remaining four years also. In case, the cropping pattern
adopted by the farmer is changed in the subsequent year, the limit may be reworked.
3.1.b.1.
The long term loan limit based on the proposed investments during the five year
period is to be arrived at as per para 3.1.a.2.
3.1.b.2.

Maximum Permissible Limit:

Short term loan limit arrived for the 5th year plus the estimated Long Term loan requirement
for five years will be the Maximum Permissible Limit (MPL) and treated as the Kisan Credit
Card Limit.
3.1.b.3.
(i)

(ii)

Fixation of SubSub-limits for other than Marginal farmers:

Short term loans and Term loans are governed by different interest rates.
Besides, at present, short term crop loans are covered under Interest Subvention
Scheme/ Prompt Repayment Incentive scheme. Further, repayment schedule and
norms are different for Short term and Term loans. Hence, in order to have
operational and accounting convenience, the card limit is to be bifurcated into
separate sub limits for Short term cash credit limit cum Savings account and Term
loans.
Drawing limit for short term cash credit should be fixed based on the cropping
pattern. The amounts for crop production, repairs and maintenance of farm assets
and consumption may be allowed to be drawn as per the convenience of the farmer.
In case the revision of scale of finance for any year by the district level committee
exceeds the notional hike of 10% contemplated while fixing the five year limit, a
revised drawable limit may be fixed and the farmer be advised about the same. In
case such revisions require the card limit itself to be enhanced (4th or 5th year), the
same may be done and the farmer be so advised. For term loans, installments may
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ADV: 72 / 2014-15 dated 21/08/2014

CO: RBD

Master circular on Revised Kisan Credit Card (KCC) Scheme


be allowed to be withdrawn based on the nature of investment and repayment
schedule drawn as per the economic life of the proposed investments. It is to be
ensured that at any point of time the total liability should be within the drawing limit of
the concerned year.
3.2

For Marginal Farmers:

A flexible limit of Rs.10,000 to Rs.50,000 be provided (as Flexi KCC)


KCC based on the land
holding and crops grown including post harvest warehouse storage related credit needs and
other farm expenses, consumption needs etc. plus small term loan investments like purchase
of farm equipments, establishing mini dairy/backyard poultry as per assessment of Branch
Manager without relating it to the value of land. The composite KCC limit is to be fixed for a
period of five years on this basis.
3.3 Illustrations for arriving at Card Limit are annexed.
4.

Disbursement :

4.1 The short term component of the KCC limit is in the nature of revolving cash credit
facility. There should be no restriction on the number of debits and credits. The drawing limit
for the current season / year could be allowed to be drawn using any of the following delivery
channels:
a.
b.
c.
d.
e.
f.
g.

Operations through branch.


Operations using Cheque facility.
Withdrawal through ATM/Debit Cards.
Operations through Business Correspondents and ultra small branches
Operation through PoS available in Sugar Mills/Contract farming companies,
etc., especially for tie-up advances.
Operations through PoS available with input dealers
Mobile based transfer transactions at agricultural input dealers and mandies.

4.2
The long term loan for investment purposes may be drawn as per installment fixed.
As the CC limit and the term loan limit are two distinct components of the aggregate card limit
bearing different rates of interest and repayment periods, until a composite card could be
issued with appropriate software to separately account transactions in either sub limits, two
separate electronic cards may be issued..

ADV: 72 / 2014-15 dated 21/08/2014

CO: RBD

Master circular on Revised Kisan Credit Card (KCC) Scheme


5.

Validity:
i.
ii.

iii.

The Kisan Credit Card is valid for 5 years subject to an annual review.
The review may result in continuation of the facility, enhancement of the limit or
cancellation of the limit / withdrawal of the facility, depending upon increase in
cropping area / pattern and performance of the borrower.
When extension and/or re-schedulement of the period of repayment on account of
natural calamities affecting the farmer is granted, the period for reckoning the status
of operations as satisfactory or otherwise would get extended together with the
extended amount of limit. When the proposed extension is beyond one crop season,
the aggregate of debits for which extension is granted is to be transferred to a
separate term loan account with stipulation for repayment in installments.

6.

Rate of Interest (ROI):

6.1.

ROI linked to Base Rate.

However, if Government supported interest subvention is provided for any component of the
limit, the rate of interest is to be fixed accordingly. (Presently interest rate for short term crop
loans/KCC sanctioned to farmers up to Rs 3.00 lakh is 7% as per extant interest subvention
scheme of Government of India).
6.2 For loans above Rs 3.00 lakh is linked to base rate.
6.3 Long term loan limit under KCC is linked to base rate.
For 6.2 & 6.3 Rate of interest is applicable as per CO/RBD circular isuued from time to time.
7.

Margin:

7.1.
For crop loans, no separate margin need be insisted as the Margin is in-built while
fixing the Scales of Finance. For term loan component, it will be in conformity with the
guidelines of RBI/NABARD from time to time.
7.2.
In case of agri advances (both crop and term loans), no margin should be insisted
for loans up to Rs 100000/-. For limits above Rs100000/-, a margin of 15% to 25% to be
insisted, depending upon the purpose and the quantum of the loan.
8.

Security:

8.1.

Security will be applicable as per RBI guidelines prescribed from time to time.

8.2.

Security requirements are as under:




Hypothecation of crops up to card limits of Rs 1.00 lakh, as per RBI


extant guidelines.

With tie-up for recovery: Hypothecation of Crops up to card limit of
Rs.3.00 lakh without insisting on collateral security.
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ADV: 72 / 2014-15 dated 21/08/2014

CO: RBD

Master circular on Revised Kisan Credit Card (KCC) Scheme




Collateral security by way of mortgage of immovable property is to be


obtained for loan limits above Rs.1.00 lakh in case of non tie-up and
above Rs.3.00 lakh in case of tie-up advances.

8.3.

In States where banks have the facility of online creation of charge on the land
records, the same shall be ensured.

9.

Repayment period:

9.1

9.2

The repayment period may be fixed by branches as per the anticipated


harvesting and marketing period for the crops for which a loan has been granted

The term loan component will be repayable depending on the type of activity/
investment as per the existing guidelines applicable for investment credit.

10. Other features:


a.
Interest Subvention/Incentive for prompt repayment is applicable as advised by
Government of India. Our branches should make the farmers aware of this facility.
b.
Besides the mandatory crop insurance, the KCC holder should have the option to
take benefit of Assets Insurance, Personal Accident Insurance Scheme (PAIS), and Health
Insurance (whether product is available) and have premium paid through his KCC account.
Necessary premium will have to be paid on the basis of agreed ratio between Bank and
farmer to the insurance companies from KCC accounts. 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.
Note: 100% crop insurance coverage of all crop loans sanctioned for notified crops in notified
areas should be ensured by the branches.
c.
One time documentation at the time of first availment and thereafter simple
declaration (about crops raised / proposed) by farmer from the second year onwards.

d.

No processing fee should be charged up to a card limit of Rs 3.00 lakh.

e.
Farmers to be provided with KCC Short Term sub-limit cum SB account so as to
allow credit balance in KCC cum SB accounts to fetch interest at savings bank rate. A
separate folio needs to be maintained for the long term sub-limit until both the sub-limits are
integrated through an electronic card with suitable software.
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ADV: 72 / 2014-15 dated 21/08/2014

CO: RBD

Master circular on Revised Kisan Credit Card (KCC) Scheme


Classification of Account as NPA:
The extant prudential norms for income recognition, asset-classification and provisioning will
continue to apply for loans granted under revised KCC Scheme.

Illustration
Assessment of KCC LIMIT
1. Small Farmer raising Multiple Crops in a year
1. Assumptions:

1. Land holding: 2 acres


2. 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)
3. 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)
2. Assessment of Card Limit

(i) Crop loan Component


Cost of cultivation of 1 acre of Paddy and 1acre of Sugarcane
(11000+22000)

: Rs.33000

Add: 10% towards post harvest/household expense/consumption

: Rs. 3300

Add: 20% towards farm maintenance

: Rs. 6600

Total Crop Loan limit for 1st year

: Rs.42900

Loan Limit for 2nd year


Add: 10% of the limit towards cost escalation/increase in scale of finance
(10% of 42900 i.e 4300)
Loan Limit for 3rd year
Add: 10% of the limit towards cost escalation/increase in scale of finance
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: Rs. 4300
:Rs.47200
Rs.47200

ADV: 72 / 2014-15 dated 21/08/2014

CO: RBD

Master circular on Revised Kisan Credit Card (KCC) Scheme


(10% of 47200 i.e 4700)

: Rs. 4700
: Rs.51900
Rs.51900

Loan Limit for 4th year


Add: 10% of the limit towards cost escalation/increase in scale of finance
(10% of 51900 i.e 5200)

: Rs. 5200
:Rs.57100
Rs.57100

Loan Limit for 5th year


Add: 10% of the limit towards cost escalation/increase in scale of finance
(10% of 57100 i.e 5700)

: Rs. 5700
: Rs.62800
Say Rs.63000.(A)
Rs.63000.(A)

(ii) Term loan component:


1st Year :Cost of 1+1 Dairy Unit
3rd Year : Replacement of Pumpset :
Total term loan amount

: Rs. 40000
: Rs. 30000
: Rs. 70000.(B)
70000.(B)

Maximum Permissible Limit /Kisan Credit Card Limit (A) +(B)

: Rs.133000/Rs.133000/-

Note:
Drawing Limit will be reduced every year based on repayment schedule of the term loan(s) availed
and withdrawals will be allowed up to the drawing limit.

ADV: 72 / 2014-15 dated 21/08/2014

CO: RBD

Master circular on Revised Kisan Credit Card (KCC) Scheme

2. Other Farmer raising


raising Multiple Crops in a year

1. Assumptions:
2. Land Holding: 10 acres
3. 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.10000)
Sugarcane - 5 acres (Scale of finance plus crop insurance per acre Rs.22000)
4. Investment/Allied Activities :
(i)
(ii)

2.

Establishment of 2+2 Dairy Unit in 1st Year ( Unit cost : Rs.100000)


Purchase of Tractor in 1st Year( Unit Cost : Rs.600000)

Assessment of Card Limit

(i) Crop loan Component


Cost of cultivation of 5 acres of Paddy, 5 Acres of Groundnut and
5 acres of Sugarcane
Add: 10% towards post harvest/household expense/consumption

: Rs.215000
: Rs. 21500

Add: 20% towards farm maintenance

: Rs. 43000

Total Crop Loan limit for 1st year


Loan Limit for 2nd year

: Rs279500

Add: 10% of the limit towards cost escalation/increase in scale of finance


(10% of 279500 i.e 27950)

: Rs.27950
:Rs.307450

Loan Limit for 3rd year


Add: 10% of the limit towards cost escalation/increase in scale of finance
(10% of 307450 i.e 30750)

: Rs.30750
:Rs.338200
Rs.338200

Loan Limit for 4th year


Add: 10% of the limit towards cost escalation/increase in scale of finance
(10% of 338200 i.e 33800)

10

: Rs.33800
:Rs.372000

ADV: 72 / 2014-15 dated 21/08/2014

CO: RBD

Master circular on Revised Kisan Credit Card (KCC) Scheme


Loan Limit for 5th year
Add: 10% of the limit towards cost escalation/increase in scale of finance
(10% of 372000 i.e 37200)

: Rs.37200
:Rs.409200
Say Rs.409000 (A)

(ii) Term loan component:


1st Year :Cost of 2+2 Dairy Unit
Purchase of Tractor

: Rs. 100000
: Rs .600000

Total term loan amount

: Rs.700000.(B)
Rs.700000.(B)

Maximum Permissible Limit /Kisan Credit Card Limit (A) + (B)

: Rs.1109000/-

Note :
Drawing Limit will be reduced every year based on repayment schedule of the term loan(s) availed
and withdrawals will be allowed
allowed up to the drawing limit.

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ADV: 72 / 2014-15 dated 21/08/2014

CO: RBD

Master circular on Revised Kisan Credit Card (KCC) Scheme


3. Marginal Farmer raising Single Crop in a year

1. Assumptions:

1.
2.
3.
4.

Land holding: 1 acre


Crops grown: Paddy ( Scale of finance plus crop insurance per acre : Rs.11000/-)
There is no change in Cropping Pattern for 5 years
Allied Activities to be financed One Non Descript Milch Animal ( Unit Cost Rs:
15000)

2. Assessment of Card Limit:

(i) Crop loan Component (Cost of cultivation for 1 acre of Paddy)


Add: 10% towards post harvest/household expense/consumption
Add: 20% towards farm maintenance

: Rs.11000
: Rs. 1100
: Rs. 2200

Total Crop Loan limit for 1st year

: Rs.14300A1

(ii) Term Loan Component


Cost of One Milch Animal

: Rs.15000 B

1st Year Composite KCC Limit : (A1) + (B)

: Rs.29300

2nd Year :
Crop loan component:
A1 plus 10% of crop loan limit (A1) towards cost escalation/
increase in scale of finance [14300+(10% of 14300= 1430)]

: Rs.15730A2
A2
Rs.15730

2nd Year Composite KCC Limit : A2+B ( 15730+15000)

: Rs.30730

3rd Year :
Crop loan component:
A2 plus 10% of crop loan limit (A2) towards cost escalation/
increase in scale of finance [15730+(10% of 15730= 1570)]

: Rs.17300..A3
Rs.17300 A3

3rd Year Composite KCC Limit : A3+B ( 17300+15000)

: Rs.32300

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ADV: 72 / 2014-15 dated 21/08/2014

CO: RBD

Master circular on Revised Kisan Credit Card (KCC) Scheme


4th Year :
Crop loan component:
A3 plus 10% of crop loan limit (A3) towards cost escalation/
increase in scale of finance [17300+(10% of 17300= 1730)]

: Rs.19030..A4
Rs.19030 A4

4th Year Composite KCC Limit : A4+B ( 19030+15000)

: Rs.34030

5th Year :
Crop loan component:
A4 plus 10% of crop loan limit (A4) towards cost escalation/
increase in scale of finance [19030+(10% of 19030= 1900)]
5th Year Composite KCC Limit : A5+B ( 20930+15000)

Maximum Permissible Limit / Composite KCC Limit

: Rs.20930..A5
Rs.20930 A5
: Rs.35930
Say Rs.36000

: Rs.36000

Note:
Drawing Limit will be reduced every year based on repayment schedule of the term loan(s)
availed and withdrawals
withdrawals will be allowed up to the drawing limit
All the above costs estimated are illustrative in nature. The recommended scale of finance /
unit costs may be taken into account while finalizing the credit limit.

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ADV: 72 / 2014-15 dated 21/08/2014

CO: RBD

Master circular on Revised Kisan Credit Card (KCC) Scheme


Annexure II
Additional guidelines
guidelines for documentation and product codes
Documentation:
In accordance with the securities prescribed for the advances, appropriate documents from the
following have to be taken.
 Agreement for hypothecation - Agricultural loans (Direct/Allied Activities) - D-68
 Agreement of Guarantee - D-57
 Equitable Mortgage - D-32/D32/D-33/D33/D-34/D34/D-34A or
Registered Mortgage - D-67
 Disposal of proceeds letter - D-7
 For renewal of KCC short term limit, application Form II (2) ( given in Annexure 4.8, Rural
Banking Manual 2008)
In case of tie-up arrangement
 Letter addressed by the borrower to sugar mill or procuring agency (F(F-118)
 Letter addressed by sugar mill or procuring agency to Bank (F(F- 119)
For Short term and Term loan components of KCC limit, necessary documents / forms / requirement
are to be obtained as mentioned in the Documentation manual (Ref Chapter 5 Page 5.79 to 5.85).
Product Codes:


KCC loans for crop production purposes sanctioned to farmers up to Rs.3.00 lakh
will continue to be charged at 7% ROI as per extant Interest subvention scheme for shortterm crop loans of the Govt. of India.

Accounts eligible under Interest subvention scheme should be opened under


KISAN CREDIT CARD 7% (5503 0005) product code only.

Accounts with short term limit beyond Rs 3.00 lakh and accounts which are not
eligible to be covered under Interest Subvention scheme, if any, are to be opened under any
one of the following product codes depending upon the limit
KCC (50000) BASE RATE (5903 0017)
KCC (200000) BASE RATE (5903 0018)
KCC (500000) BASE RATE (5903 0019)
KCC ABOVE 500000- BASE RATE (5903 0020)

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ADV: 72 / 2014-15 dated 21/08/2014

CO: RBD

Master circular on Revised Kisan Credit Card (KCC) Scheme


For Term Loan components of the KCC limit, accounts are to be opened under the relevant product
codes as applicable to type of activities.
Annexure III
ACTION POINTS FOR BRANCHES
 Henceforth, all fresh loans including renewal of agricultural loans (short term and long
term) have to be considered under the new KCC scheme only.
 During village visits / pre season campaigns by BM/RDO, the farmers requests for KCC are to
be ascertained for fresh loans /renewal of KCC.
 All existing KCC accounts may be converted into new KCC scheme during the tenure of the
limit at the option of the farmers.
 New farmers are to be asked to submit land revenue record, photographs and KYC
documents.
 Branch Manager/RDO should process the proposal with due diligence.
 Branch to ensure that the farmers have the following limits:
The short term cash credit limit cum savings account in the nature of revolving cash
credit facility. There is no restriction on number of debits and credits up to the
drawing limit at any point of time.
Investment requirement of farmers in the nature of term loans.
 Upon sanction, branch shall inform farmers to execute loan documents.
 Upon execution of documents at branch, the branch should apply for Kisan ATM cum Debit
card to CO: ATM Card Section immediately. The screen for submitting Kisan card requests is
provided in the URL http://10.100.6.215/atmnet/kisan.asp
 On receipt of Kisan card, capturing of bio-metrics of the farmers is to be ensured and
activated for all the KCC holders. While delivering card to the farmers, they should be
educated / guided adequately to operate the accounts as per their need.
need
 Branch should disburse the loan immediately in cases where charge on land is not required
to be created. Where charge is to be created on land, loan limit is to be disbursed after
completion of charge creation.
 Proposed electronic Kisan Cards (ATM cum Debit cards) under RUPAY platform may be
issued to KCC farmers in their existing accounts also (other than overdue accounts)
facilitating them to operate the account at their convenience.
 Kisan card is specific to each KCC account. Hence, while renewing the existing accounts for a
tenure of five years, care should be taken to ensure that same account number is maintained
by obtaining appropriate documents. Card validity period is five years.
 Where farmers have no access to any ATMs, cash withdrawals should be allowed at branches
as allowed hitherto.

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ADV: 72 / 2014-15 dated 21/08/2014

CO: RBD

Master circular on Revised Kisan Credit Card (KCC) Scheme


 Farmers who are issued ATM cum Debit Card should also be allowed to draw from the branch,
if they so desire. However, they may be encouraged and educated to utilize the ATM facility
wherever available.

 Branches should ensure regular follow


follow up of advances for proper conduct of the accounts
to maintain asset quality.
 Branches should issue Kisan Credit cards to all the eligible farmers in their command area
during the ensuing Kharif season.
FOR ZONAL OFFICES
 To conduct the meeting of Branch Managers and RDOs to sensitize them about the revised
Kisan Credit Card scheme and its importance.
 To identify strategic locations for installing bio metric ATMs and provide necessary
infrastructure to suit the current requirements i.e new delivery channels of disbursement of
agricultural credit by biometric enabled ATM cum debit card.
 To ensure that necessary arrangements have been made (including deployment of
officials/RDOs to the needy branches) in rural and semi-urban branches for uninterrupted
credit flow to meet the seasonal demand.
 To print and supply pamphlets/leaflets in local language on revised KCC scheme and ensure
distribution of the same to farmers by branches.
 To fix weekly targets to branches to cover all the eligible households during the ensuing Kharif
season itself and to monitor the issue of KCC ATM cum debit cards as per the identified list in
each and every village.
 To review the progress on a daily basis and render proper guidance/support to branches
wherever needed.
 To participate in pre season credit campaigns, monitor the branches for proper and effective
conduct of the same

 To ensure distribution of Kisan ATM cum debit cards to all eligible farmers through wide
publicity.

*****************************

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