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Progress of Kisan Credit Card Scheme in India

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AJAB Volume 3 Issue 1 2018

Amity Journal of Agribusiness

3 (1), (26-36)
©2018 ADMAA

Progress of Kisan Credit Card Scheme in India

Hardarshan Kaur & Navkiranjit Kaur Dhaliwal
Punjabi University, Patiala, Punjab, India

Abstract
The quantum of financial assistance to agriculture in India has improved manifold since the financial
reforms. The government along with RBI has introduced various schemes and programs in order to
channelize funds to rural areas of the country so that sufficient credit can be provided to farmers. It also
emphasized on the need for creative credit instruments to support farmers and that gave birth to Kisan Credit
Card Scheme. The scheme has been started in the year 1998 on the recommendations of Shri R.V. Gupta
committee. The Kisan credit card scheme is a short term credit facility in order to provide agriculture credit
in hassle free manner for production as well as consumption needs of the farmers. It facilitates in providing
financial assistance to the farmers to meet their credit needs in relation to production, consumption as well
as other allied activities throughout the year as and when required. The current paper reviews the progress
of Kisan credit card scheme in the country since inception. The main objective was to examine the period-
wise and agency-wise progress. The period of the study was from 1998-99 to 2012-13. The progress of KCC
scheme was evaluated in the terms of number of cards issued and amount sanctioned under the scheme. The
statistical techniques like mean, coefficient of variation and exponential growth rate were used to analyze
the progress of the scheme. The study showed growth of the scheme in terms of number of cards issued
and amount sanctioned during the study period. It was also found that commercial banks were ahead of
cooperative banks and regional rural banks for cards issued and amount sanctioned under KCC scheme.
Key Words: Kisan Credit Card, Agency
JEL Classification: M0
Classification of Paper: Research Paper

Introduction
Agriculture has been the basis of Indian economy where majority of the population of the
country either depends upon agriculture for their livelihood or are engaged in agriculture
occupation. Agriculture has been outpaced by the increasing technical and service sector
development in the country although it is still a major contributor to the gross domestic
product of the country. Over the period of time, the need of agriculture credit has also increased
which has given rise to formal and informal sectors of lending. The banking sector reforms
and nationalization of various banks gave rise to formal lending of credit to agriculture. The
government along with RBI has introduced various schemes and programs in order to channelize
the funds to rural areas of the country so that sufficient credit can be provided to farmers. The

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structure of agriculture credit in India comprises commercial banks, regional rural banks and co-
operative banks. The scheme Kisan credit card was started in August 1998 in order to provide
timely and hassle free credit for the production requirements of the farmers. The main purpose of
the scheme was to meet the production as well as consumption needs of the farmers. It facilitates
in providing financial assistance to the farmers to meet their credit needs in relation to production,
consumption as well as other allied activities throughout the year as and when required. Credit
assistance is required by a farmer for several purposes. This can be for the purpose of cultivation
of the crops beginning from making the land cultivable, followed by cultivating the land, sowing,
nourishing the crops, using fertilizers and pesticides etc. till the harvest of crops. The model for
the scheme was prepared by NABARD for issue of Kisan credit card with consultation of some
major banks and the scheme was circulated by RBI to be adopted by all the banks uniformly. The
main aim of the scheme was to seek the problems of farmers regarding inadequate, untimed,
uneconomic and short term credit needs. The scheme provides credit for crop production,
ancillary and non-farm activities as well as consumption needs. The scheme was implemented
throughout the country with effect from the year 1998-99.
Using the NABARD KCC scheme, the eligible farmers have been issued a Kisan Credit Card or
Pass Book. Within the prescribed limit, there can be any number of withdrawals and repayments
with the cash credit facility. In order to assess and fix the limit of a farmer, the annual total
production credit needs include other auxiliary activities in relation to crop production. Within
the due course, even the allied activities and short term credit needs pertaining to non-farming
may also be covered. The limit of a farmer is set on the base of his productive land holding, crop
pattern and financial scales and the discretion in fixing these sub- limits lies with the banks. The
limit carries a validity period of three years and it is also a subject to periodic review. The facility
even allows re-scheduling or conversion of credit due to loss to crops in case of natural disaster.
On the other hand, the promotional and progressive benefits i.e. incentive for good performance
or enhancement of credit limit due to inflation or changes in cropping pattern etc. are also given.

Review of Literature
Mehta et al. (2016) analysed the role of kisan credit card scheme in the rural India. The primary
motive of the study was to analyse the role of Kisan credit card scheme and provide suggestions
thereof. It was observed that Kisan credit card was very effective popular tool of rural credit to
finance the requirements of farmers in judicious manner. It was suggested that banks must make
the process easy so that the farmers in poor performing zones can also get benefit from the scheme
as well.
Gandhimathi and Sumaiya (2015) evaluated the role of kisan credit card system in the
distribution of agricultural credit in the country. It was found that among the selected variables,
rural branches of commercial banks, aggregate deposits, agriculture production, borrowing
of commercial banks from Reserve Bank of India and the introduction of KCC scheme were
significant to determine financial inclusion. Further, it was observed that the regression analysis
and logit analysis proved that KCC improved the financial inclusion in the agriculture sector.
Maurya (2015) studied the role of co-operative banks in agriculture in district Mohali (Punjab)
with the purpose to assess the impact of agriculture credit provided by co-operative banks in the
study area. Further, it also studied the attitude of borrowers and lending agents towards farmers
and assessed the impact of credit on assets, level of income, employment, savings etc. The study
was based on primary sample survey conducted on 120 beneficiary farmers. The parameters used
were utilization of land, amount of irrigation, cropping strength, output model, cultural practices,

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input arrangement, farm incomes, employment model, saving guide. It was found that almost
all the parameters under the study had significant impact on co-operative banks lending in one
way or the other. But banks failed to go long way to fulfill the credit requirements of the rural
farmers. Further, it was also found that there was increase and decrease in the rural farm credit by
institutional and non institutional agencies during the last five decades but the lending institutions
faced many problems such as over dues and defaults. It was recommended that instead of giving
cheaper credit, banks should also try to inculcate saving habit and monitoring arrangements and
controls should be tightened.
Bindage et al. (2014) studied the economic impact of kisan credit card scheme for sugarcane
crop in Kohlapur (Maharashtra). The main objective of the paper was to review the development
in the number of Kisan credit card consumers and examine the rate and adequacy of loan under
the scheme as compared to loan without KCC. For the purpose of primary survey, data has been
collected from 60 KCC users and 60 non KCC beneficiaries selected randomly. The study has been
conducted for the year 2010-11. The pre-tested and structured schedule has been used to collect
information regarding borrowings, repayment, interest and cost of borrowing etc. Growth rate
and tabular analyses had been employed in order to study the growth of KCC users and compare
cost and adequacy of credit covered with KCC and those not covered with KCC. It was found that
KCC users grew over the study period but it faced a slowdown in last few years of the study. The
cost of credit was higher for credit not covered with KCC scheme. Further, the credit was found
to be inadequate in both cases credit under KCC scheme and credit not covered with KCC. It was
recommended that the banks should make efforts to encourage and educate the farmers about the
benefits of KCC scheme as well as maximize their reach to cover all the farmers.
Godara et al. (2014) analysed the KCC scheme in the state of Haryana. The banks so selected
were state regional rural banks and state co-operative banks. The main objective was to study
the kisan credit card issued, sanctioned and disbursed by RRBs and state co-operative banks.
The compound annual growth rate was calculated to examine the performance. It was found
that the performance of regional rural banks was satisfactory as compared to co-operative banks.
Further, it was suggested to educate farmers about the scheme, banks should open more branches
and attention should be given to low performing regions and effective steps should be taken by
government to improve the performance of KCC scheme.
Patil (2014) evaluated the function of commercial banks in financial inclusion through KCC
scheme in India with the objective to analyse the bank group wise disbursement of kisan credit
cards and credit to holders. It was observed that all the bank groups had made good contribution
in financing poor farmers through Kisan credit card scheme. However, role of commercial banks
was more significant than other two groups. It was observed that co-operative banks were facing
problems due to political interference and wrong management. It was suggested that the co-
operative banks should be taken care of by reducing political interference in order to motivate co-
operative sector.
Laxyapathi (2013) evaluated the kisan credit card scheme in India and Karnataka in order
to analyse the development rate of Kisan credit card users and study the impact of Kisan credit
card on the production of the crops and income of the farmers. The respondents were randomly
selected and information was obtained by way of questionnaire. It was observed that there was
growth in the number of Kisan credit card users as new farmers were adopting this scheme every
year. Further, there was significant rise in the production of crops and as a result, increasing
yield leads towards increase in the income of farmers. It was suggested that introduction of
biometric cards, weather based crop insurance schemes, simplification of procedure to obtain loan,

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initiatives by commercial banks as well as state governments, innovative insurance products can
make Kisan credit card scheme more farmer friendly and efficient instrument of credit delivery.
Sharma et al. (2013) analysed the kisan credit card scheme among the beneficiary farmers and
also studied the impact of same in Sehore (Madhya Pradesh). The main objective of the study was
to review the adoption behavior of beneficiary farmers. 120 respondents were selected randomly
and data was collected through survey method. The adoption behavior was measured in terms of
borrowed amount, repayment pattern, income generation, gross income from crops and utilization
of credit etc. It was revealed that the attitude of the beneficiaries was satisfactory towards Kisan
credit card scheme. The short term loan had positive impact on the income generation, gross
income from crops and productivity of crops. Further, the borrowers were regular in repayment
of the loan except few defaulters and all were utilizing the credit for the production purpose only.
Shinde (2013) studied the impact of Kisan credit card scheme on farm economy and factors
influencing adoption of scheme and constraints faced by the farmers. The secondary data was
used and analyzed by using percentages and averages. The statistical tool of Cobb Douglas
production function was used in order to assess the resource use efficiency. The factors which
were influencing the adoption of Kisan credit card scheme were found by using a binary logit
model and the Garrett’s ranking technique was used to rank the problems faced by the users.
It was found that kisan credit card was popular product among farmers with great interstate
variation in numbers and social economic factor was affecting the holding of Kisan credit card.
It was suggested to train the borrowers regarding the procedure of obtaining Kisan credit card
scheme to get more positive impact.
Thakur and Barman (2013) studied the basis of poor performance of disbursement and
recovery of loan under the Kisan credit card scheme in the state of Assam. For the purpose
of study, 150 farmers and 15 bank officials were randomly selected to take opinion on low
disbursement and poor recovery of KCC credit. The data was collected by using semi structured
open ended. It was found that lengthy paper work, weak recovery of loan, unawareness,
insufficient credit limit, lack of motivation from bank officials, timeliness of credit and procedural
difficulties for availing loans were the major reasons of poor disbursement of Kisan credit cards.
Poor awareness among farmers for loan utilization, casual approach of bank follows up, weak
government policy, misutilization of loan, involvement of commission agents were found to be the
main reasons for poor recovery of loans under Kisan credit card scheme.
Olekar (2012) addressed the problems and constraints in effective implementation and quick
coverage of Kisan credit cards with the specific objectives to analyze the disbursement of loans
and volume of turnover of Kisan credit card, to assess the impact of Kisan credit card and cost
of credit, to examine the constraints in implementation of the scheme and to suggest measures
towards modification of the scheme. The research was conducted on 50 Kisan credit card holders
and bank officers with the help of interviews and questionnaires in the state of Karnataka. The
data was analyzed by using percentages, ratios and averages. The study finding could not
establish any relationship between issue of Kisan credit card and increase in crop loan volumes.
The cost effectiveness of Kisan credit card was not fully evident. Banks reported difficulty in
maintaining crop wise loan issued and outstanding data and details of non borrowers. The field
visit showed variance of the actual crop grown and crop considered under the limit. Money
lenders crucial role in financing posed the problem for banks in strengthening the progress of
Kisan credit card. It is recommended that co-operatives should be given flexibility in fixing the
realistic credit limits. Further RBI should increase support to NABARD to enable it to refinance

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the consumption sub limits. For maintenance of proper data, the Management Information System
should be strengthened.
Parwate et al. (2012) investigated the utilization of kisan credit card among farmers in Raipur
(Chhattisgarh). The data was collected through personnel interview from a sample of 120 farmers
which were randomly selected from 12 villages. To analyze the data, four point scale was used. It
was found that 95.66 per cent, farmers utilized the Kisan credit card benefits for crop insurance
and 85.33 per cent utilized full credit limit for the purpose and 40 per cent of farmers utilized the
loan facilities under Kisan credit card for the whole cropping season. It was recommended that for
increasing the productivity for sustainable development, efforts should be made to popularize the
use of the Kisan credit card.
Patra et al. (2012) examined the impact and determinants of credit under kisan credit card
scheme in India. The study was conducted in Cuttack district of Orissa state in India and the
parameter used was number of cards issued. Sample farmers were randomly selected according
to their land holding size. The data was analyzed using statistical tools such as mean, standard
deviation, percentage share, weighted average, growth rate, etc. It had been found that kisan
credit card scheme was effectively providing institutional loan to farmers which in turn raised
the number of new borrowers every year. Cost of cultivation was found to be most significant
determinant of credit requirement. It was further suggested that banks should take initiatives for
promotion of self help groups, farmers Club and innovative insurance products and should have
more productive approach to make Kisan credit card a farmer friendly efficient instrument for
credit delivery system.
Santhi (2012) studied the impact of Kisan credit card scheme on the farmers in Kanyakumari
district. It was found that there was no relationship between the crop loan volumes and Kisan
credit card. It was observed that most of the Kisan credit card-holders were not aware about the
benefits and uses of Kisan credit card scheme.
Uppal and Juneja (2012) evaluated the performance of various banks in issuing Kisan credit
cards and limit via Kisan credit cards for the period 2009 to 2011. The main purpose of this paper
was to study the features of kisan credit card, agency wise and state wise progress of Kisan credit
card. For the analysis, commercial banks, state regional rural banks and state co-operative banks
were selected. For the analysis, statistical techniques like arithmetic mean, percentage and growth
rate were used. For the performance evaluation, parameters like number of Kisan credit cards
issued and amount sanctioned were selected. The study found that commercial banks were most
successful in pleasing the aims of NABARD followed by regional rural banks. Overall average
percentage growth rate of all the bank groups was 0.323 per cent which showed the efficient
performance of Indian Banking industry in serving agriculture. It was further suggested that by
strengthening the co-operative banks, more growth rate in issuing Kisan credit card could be
achieved.
Mahavir (2010) evaluated Kisan credit scheme in Belgaum (Karnataka) and Sangli
(Maharashtra). The main idea of this paper was to study the growth of KCC users, impact of
scheme on crop productivity, cost effectiveness of scheme and constraints in the operation of
scheme. The data was analyzed through percentages, averages, arithmetic mean, growth rate and
the cobb-douglas production function. The sample farmers and bank managers were interviewed.
The compound growth rate of KCC issued in Karnataka and Maharashtra was 28.69 per cent per
annum and 24.96 per cent per annum respectively as there was consistent growth in KCC issued.
In Belgaum, the growth rate was negative for number of accounts issued and amount sanctioned
and in Sangli, number of accounts was positive and amount sanctioned showed negative growth
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rate. There was not much impact of KCC scheme on the crop productivity rather it depended
upon the size of holding and utilization of resources as well. The cost of credit was higher in the
non- Kisan credit card category as compared to that in the Kisan credit card. The main constraints
identified were the high interest rates, non availability of credit other than production activities
and inadequacy of credit. It was suggested to educate farmers about the scheme to achieve more
growth. The KCC scheme should be extended to cover term loans and loans other than crop loans.
Rao et al. (2005) examined the Kisan credit card scheme and initiatives taken by Orissa state
co-operative bank. The data was collected from the managers and staff members of co-operative
banks at Bhubaneswar, Akhandeswar and Sishupalgarh and few borrowers. It was observed that
Orissa state co-operative bank was first to start Kisan credit card scheme after launching of the
scheme by Indian government. Kisan credit card was popularised among farmers by Orissa co-
operative bank by bringing technology close to ruralites. It was found that the computerization
of all co-operative banks and district level committees to review the implementation of Kisan
credit card scheme and to conduct Kisan credit card holders meeting once in a year to deliberate
issues were initiatives taken by Orissa co-operative bank. . It was suggested that co-operative bank
should make efforts to have positive interventions for improving the scheme, efforts to increase
in number of accounts, incentives for sincere borrowers, to provide adequate credit, to have some
scheme for post harvest credit, to finance leased farmers, to provide term loans, loans for allied
activities, to reduce transactional cost and to make use wider network connectivity.
Sahu (2004) examined the institutional finance for agriculture at macro and micro level to study
the trends of institutional credit to agriculture before and after the introduction of the banking
sector reforms. For the purpose of the study at macro level, 14 states on the basis of population
and net domestic product were selected. The kalahandi district of Orissa had been chosen for
micro level analysis. It was found that during the last decade, the flow of credit to agriculture
sector had declined significantly due to increased lending rates. The association of agriculture
credit flow was negative with investment in government securities, credit subsidy and proportion
of credit provided by the co-operatives. It was found that in most of the states, the growth of
agriculture credit was higher during pre-reform period in comparison to the reform period.
The district level analysis was similar to that of the state level analysis in most of the findings.
The analysis of flow of credit in Kalahandi district revealed that bankers were giving preference
to lending for non-agricultural activities. It was also found that poor recovery, inadequate
infrastructure support and low credit absorption capacity of the agricultural borrowers were main
constraints in the supply of agricultural credit. It was recommended that better credit delivery
system and reduction in cost of lending should be adopted.

Objectives of the Study

The main intention of the paper was (i) to review the period-wise progress of Kisan credit card
scheme (ii) to study the agency-wise progress of Kisan credit card scheme.

Research Methodology
For the purpose of the study, the period-wise and agency-wise progress have been studied. The
data has been taken for the financial years of 1998-99 to 2012-13. The progress has been calculated
by using mean, coefficient of variation and exponential growth rate and presented in the form
of tables. The data has been accumulated from various reports of NABARD and publications of
Reserve Bank of India. The agency-wise analysis has been done for commercial banks, regional
rural banks and co-operative banks providing Kisan credit card scheme during the period.

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Analysis
Period-wise Progress of Kisan Credit Card Scheme
Kisan credit card scheme was brought in the budget speech made by Finance minister of India
for the year 1998-99 and was implemented in the same year. Since then, the scheme has made
rapid progress and upto March 2013, all the banks have issued 1285.82 lac cards in various states
throughout the country. The period-wise progress of KCC scheme has been reviewed on the
basis of selected indicators like number of kisan credit cards issued and amount sanctioned. The
period-wise progress of Kisan credit card scheme in India for the year 1998-99 to 2012-13 has been
presented in Table 1.
Table 1: Period-wise Progress of Kisan Credit Card Scheme in India
Year No. of Cards Issued Amount Sanctioned
(In lac) (Rs. in crore)
1998-99 7.84 2310
1999-00 51.34 7548
2000-01 86.52 16427
2001-02 93.41 25858
2002-03 82.43 26277
2003-04 92.47 21785
2004-05 96.80 34186
2005-06 80.12 47601
2006-07 85.11 46729
2007-08 84.70 49987
2008-09 85.92 46669
2009-10 90.05 57678
2010-11 101.69 72625
2011-12 117.60 91680
2012-13 129.82 126280
MEAN 84.79 44909.33
C.V. (%) 36.66 73.28
EGR (%) 26.37 22.72

Table 1 explains that the mean value of number of cards issued by all the banks throughout
the country was 84.79 and mean value of amount sanctioned was Rs. 44,909.33 crore. The number
of cards issued was 7.84 lac in the year 1998-99 which increased to 129.82 lac in the year 2012-
13 and registered a growth rate of 26.37 per cent during the period. The amount sanctioned
under the Kisan credit card scheme was Rs. 2310 crore in the year 1998-99 which increased to Rs.
126280 crore in the year 2012-13 and registered a growth rate of 22.72 per cent during the study
period. The number of cards issued showed more consistency (36.66) as compared to the amount
sanctioned (73.28) during the period. Thus, the kisan credit card scheme has shown growth during
the period of study in terms of number of cards issued and amount sanctioned under the scheme.

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Agency-wise Progress of Kisan Credit Card Scheme

The Kisan credit card scheme has been carried out by all the commercial banks, regional rural
banks and co-operative banks throughout the country. The position of progress made by these
agencies in regard to Kisan credit card scheme in terms of number of cards issued for the year
1998-99 to 2012-13 is presented in Table 2.
Table 2: Agency-wise Progress of Kisan Credit Card Scheme in India
Year No. of Kisan credit card Issued (In lac)
Commercial Proportion RRBs Proportion Co-operative Proportion Total
Banks in total (%) in total (%) Banks in total (%)
1998-99 6.22 79.34 0.06 0.77 1. 55 19.77 7.84
1999-00 13.66 26.61 1.73 3.37 35.95 70.02 51.34
2000-01 23.90 27.62 6.48 7. 49 56.14 64.89 86.52
2001-02 30.71 32.88 8.34 8.93 54.36 58.20 93. 41
2002-03 27 32.76 9.64 11.69 45.79 55. 55 82. 43
2003-04 30.94 33.46 12.73 13.77 48.78 52.75 92. 47
2004-05 43.96 45.41 17.29 17.86 35. 56 36.74 96.80
2005-06 41.65 51.98 12.49 15. 59 25.98 32. 43 80.12
2006-07 48.08 56.49 14.09 16. 56 22.98 27 85.11
2007-08 46.06 54.38 17.73 20.93 20.91 24.69 84.70
2008-09 58.34 67.90 14.1 4 16. 46 13. 44 15.64 85.92
2009-10 53.13 59 19.49 21.64 17. 43 19.36 90.05
2010-11 55.83 54.90 17.74 17. 45 28.12 27.65 101.69
2011-12 68.04 57.86 19.95 16.96 29.61 25.18 117.60
2012-13 82.43 63.5 20.48 15.78 26.91 20.73 129.82
MEAN 42 - 12.73 - 35.96 - 84.79
C.V. (%) 48.62 - 52.47 - 36.10 - 36.66
EGR (%) 14.27 - 22.84 - -2.67 - 26.37

Table 2 explains that during the period 1998-99 to 2012-13, the mean value of number of
cards issued under Kisan credit card scheme in India was the highest in commercial banks (42
lac) followed by co-operative banks (35.96 lac) and RRBs (12.73 lac). The growth rate of number of
kisan credit cards issued was found the highest in RRBs (22.84%) followed by commercial banks
(14.27%), while the co-operative banks showed a negative growth rate (-2.67%). The number of
cards issued by the commercial banks was 6.22 lac in the year 1998-99 which increased to 82.43 lac
in the year 2012-13. The proportion of commercial banks in total number of cards issued decreased
from 79.34 per cent in the year 1998-99 to 63.50 per cent in the year 2012-13. The number of cards
issued by RRBs was 0.06 lac in the year 1998-99 which increased to 20.48 lac in the year 2012-13.
The proportion of regional rural banks increased from 0.77 per cent in the year 1998-99 to 15.78
per cent in the year 2012-13. The number of cards issued by co-operative banks was 1.55 lac in the
year 1998-99 which increased to 26.91 lac in the year 2012-13. The proportion of co-operative banks
in total number of cards issued increased from 19.77 per cent in the year 1998-99 to 20.73 per cent
in the year 2012-13. The variation was the highest in RRBs (52.47) followed by commercial banks
(48.62) and co-operative banks (36.10) during the period of study.

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The amount sanctioned by different agencies during the period 1998-99 to 2012-13 is shown in
Table 3.
Table 3: Agency-wise Progress of Kisan Credit Card Scheme in India
Year Amount Sanctioned (Rs. in crore)
Commercial Proportion RRBs Proportion Co-operative Proportion Total
Banks in total (%) in total (%) Banks in total (%)
1998-99 1473 63.77 11 0. 48 826 35.76 2310
1999-00 3537 46.86 405 5.37 3306 47.77 7548
2000-01 5615 34.18 1400 8. 52 9412 57.30 16427
2001-02 7524 29.10 2382 9.21 15952 61.69 25858
2002-03 7481 28. 47 2955 11.25 15841 60.28 26277
2003-04 9331 42.83 2599 11.93 9855 45.24 21785
2004-05 14756 43.16 3833 11.21 15597 45.62 34186
2005-06 18779 39. 45 8483 17.82 20339 42.78 47601
2006-07 26215 56.10 7373 15.78 13141 28.12 46729
2007-08 20421 40.85 9074 18.15 20492 40.99 49987
2008-09 25865 55. 42 7632 16.35 13172 28.22 46669
2009-10 39940 69.25 10132 17. 57 7606 13.19 57678
2010-11 50438 69. 45 11468 15.79 10719 14.76 72625
2011-12 69510 75.82 11520 12.57 10640 11.61 91680
2012-13 101090 80.05 13260 10.50 11920 9.44 126280
MEAN 26798.33 6168.47 11941.2 44909.33
C.V. (%) 104.63 72.09 45.70 73.28
EGR (%) 28.86 38.93 8.80 22.72

Table 3 reveals that the mean value of amount sanctioned was the highest in commercial
banks (Rs. 26798.33 crore) followed by co-operative banks (Rs. 11941.2 crore) and RRBs (Rs.
6168.47 crore) during the study period. The growth rate of amount sanctioned was the highest
in RRBs (38.93%) followed by commercial banks (28.86%) and co-operative banks (8.80%). The
amount sanctioned by commercial banks was Rs. 1473 crore in the year 1998-99 which increased
to Rs. 101090 crore in the year 2012-13. The proportion of commercial banks in total amount
sanctioned by various agencies under kisan credit card scheme increased from 63.77 per cent in
the year 1998-99 to 80.05 per cent in the year 2012-13. Further, the amount sanctioned by RRBs
was Rs. 11 crore in the year 1998-99 and was Rs. 405 crore in the next year which increased to
Rs. 13260 crore in the year 2012-13. The proportion of regional rural banks increased from 0.48
per cent in the year 1998-99 to 10.50 per cent in the year 2012-13. The amount sanctioned by co-
operative banks was Rs. 826 crore in the year 1998-99 which increased to Rs.11920 crore in the
year 2012-13. The proportion of co-operative banks in total amount sanctioned was 35.76 per cent
in the year 1998-99 which decreased to 9.44 per cent in the year 2012-13. However, the variation
was the highest in commercial banks (104.63) followed by RRBs (72.09) and co-operative banks
(45.70). The proportion of commercial banks was the highest followed by regional rural banks and
co-operative banks in the total amount sanctioned by various agencies under kisan credit card
scheme.

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Conclusion
Thus, the kisan credit card scheme has shown growth during the period of study in terms
of number of cards issued and amount sanctioned under the scheme. As far as agency-wise
progress of Kisan credit card scheme is concerned in terms of number of cards issued and amount
sanctioned, the commercial banks were ahead of co-operative banks and RRBs during the period
of study.

References
Bindage, A.B., Patel, R.R., Makani, R. M., Sante, P.R., & Raut, V.P. (2014). Economic Evaluation of Kisan
Credit Card Scheme for Sugarcane Crop in Kohlapur District of Maharashtra. Karnataka Journal of
Agricultural Sciences, 27(3), 360-362.

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Authors’ Profile
Hardarshan Kaur did her MBA (Finance) in 2009 and M.Phil (Commerce) in 2012 from Punjabi
University, Patiala, India. At present she has completed her Ph.D from Department of Commerce, Punjabi
University, Patiala, India. She has presented papers in various national and international seminars and
conferences. She has a book in her credit and published numerous research papers as well.

Navkiranjit Kaur Dhaliwal did her M.Com in 1995, M.A (Pb. Admn) in 1996, LL.B ( Two Years) in 2000
and Ph.D in 2008 from Punjabi University, Patiala, India. She has been in teaching profession since past
more than 17 years. She has number of research papers and a book in her credit. She has presented papers in
various national & international seminars and conferences.

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