Introduction

The Kisan Credit Card (KCC) scheme is a landmark in the history of rural credit in India. The
mechanism of credit cards has been one of the key products developed to expand the outreach of
banks and simplify the credit delivery system. The announcement relating to the introduction of
Kisan Credit Card scheme was made by the Union Finance Minister during the budget speech for the
year 1998-99. NABARD formulated a Kisan Credit Card scheme for uniform adoption by the banks
so that the farmers may use the card to readily purchase agriculture inputs such as seeds, fertilizers,
pesticides etc. and draw cash for their production needs. The model scheme was circulated to
Commercial Banks, Co-operative Banks and Regional Rural Banks in August 1998. It is appropriate
to study the impact of this scheme since it has completed more than one decade. Hence, the present
study was formulated with the specific objectives to analyze the growth in the number of Kisan
Credit Card users, to analyze cost of credit and the adequacy of credit provided under KCC in
comparison with credit without KCC. Kisan Credit Card Scheme aims at providing adequate and
timely credit support from the banking system to the farmers for their cultivation needs including
purchase of inputs in a flexible, hassle free and cost effective manner. Given the benefits accrued to
the farmers on account of KCC, the initiatives of Orissa State Cooperative Bank (OSCB) were
noteworthy. Incidentally, the Orissa State Cooperative Bank was the first bank in the country to
introduce the Kisan Credit Card scheme immediately after its announcement and ensured
dispensation of entire crop loan in the State of Orissa through the KCC. The OSCB has introduced
the KCC scheme incorporating features similar to that of the KCC schemes of other banks.

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Literature Review

Tiwari Dheeraj (2012): studied on Kisan credit cards to double up as debit cards. He analysed that
the nearly 10 crore farmers who hold Kisan credit cards (KCC) be able to use their card as a deposit
account and a debit card. This helping the governments scale up its financial inclusion plan quickly
without relying on bank accounts alone. KCC, which had been instrumental in faster delivery of
credit to farmers, was like an overdraft account with a bank that had to be operated through a cheque
book or withdrawal slip. The card used only to store the details of the account. It aimed at providing
more financial freedom to farmers who were use this at various points of sales. It was reducing the
need for multiple accounts in the bank. Banks were giving interest credit to farmers with credit
balances in KCCs to encourage them to remit farm sale proceeds into their KCC account. Then,
farmers avail the full credit amount in one goes and end up paying higher interest amount. If it
becomes a debit card, they used it as and when required and pay substantially lower interest burden.
The Kisan credit card scheme, which was administering by Nabard, introduced in August 1998. By
the end of September 2011, 5.12 lakh crore had been lent through KCCs. A task force set up
under Nabard had suggested that the KCC technology-enabled, and the credit limit be fixed for five
year based on the banker's assessment of total credit needs of the farmer for a full year. Currently,
credit limit for three years fixed. Within this limit, banks carve out sub limits to cover short term,
medium term and consumption needs.

Kumar Rajiv (2011): studied on Kisan Credit Cards to all farmers. He analysed that the state
government aims at distribution of 100 percent Kisan Credit Cards (KCC) among the desirous
farmers in the state. The government saw as its main agenda to promote agriculture in the state. The
deputy chief minister said that with regard to issue KCC to the desiring farmers, the state
government had already provided the necessary guidelines to the concerned banks. As an added
incentive to farmers, they were charging with only 3 per cent interest rate against the normal 7 per
cent if they repay their loan within the stipulated timeframe. As regards the progress of KCC
distribution under the district as more than 50,000 KCCs had already been distributed against the
targeted 40,000 farmers prompting it to revise up to 60,000. The good thing, however, was that the
loan recovery rate had been very good under the scheme in the district.
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Sen Sarbajeet (2010): studied on Kisan credit cards likely to become smart. He analysed that
farmers, both big and small, were getting plastic smart cards from banks that had be swiped at
automated teller machines, points of sale and hand-held machines to withdraw cash and pay for
goods and services. The finance ministry had asked the Indian Banks Association to devise a plan in
consultation with banks to convert more than 53 lakh Kisan credit cards in circulation into smart
cards so that they were function as normal credit cards for farmers. Despite being called credit
cards, Kisan credit cards had actually been the traditional passbooks issued by public sector banks
with loan details, using which credit and debit entries periodically updated. A total of 53,13,085
Kisan credit cards had been issued by banks as on March 31, 2010. The smart were loaded with a
pre-sanctioned credit limit for each farmer against which withdrawals can be made through ATMs.
Officials said the IBA also studied the security features that need to be incorporated in the smart
cards so that they were not misusing by anyone. If rural people had been able to punch in 10 digits
while making calls on mobile phones, there was no problem in punching in the four-digit personal
identification numbers in ATMs. The card was help in storing land records and determining the
eligibility and fresh limits for farmers more easily. There were ATMs of banking in rural areas.
According to a recent RBI study, while regional rural banks often place a cap of about Rs 1,00,000
as credit limit on KCCs, commercial banks give liberal limits to farmers on the basis of their
credibility or if they provide adequate security.
Kumar Ravi (2009): studied on Kisan Credit Card (KCC) to be provided to every farmer in Jammu
and Kashmir. He analysed that in a bid to enhance agricultural activities, the Jammu and Kashmir
government announced provision of Kisan Credit Card (KCC) to every farmer in the state. The
scheme launched to make available financial support to the farming community, the minister said
while distributing the cards among 1,000 farmers. The Minister said the scheme was benefit the
farmers by boosting agriculture activities and helping them to meet timely the short term credit and
loans for the produce of marketing. They had been to synchronies ourselves with latest AgriHorti
techniques utilised across the globe for making the agriculture as profitable activity. He said the
government made a comprehensive plan to tap ground water resources for irrigation facilities to the
J&K.

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Sharma Ankit (2008): studied on Kisan Credit Card Allowing easy credit access to farmers. He
analysed that non availability of timely credit had been a major drawback for the agricultural sector
of India. As a part of these efforts, agricultural credit cards got introduced in the agricultural lending
system. The KCC scheme formulated by Government of India (GOI) after consultation with Reserve
Bank of India (RBI) and National Bank for Agricultural and Rural Development (NABARD). The
Union Budget of 1998-99 announced the idea to develop a model scheme for issuing Kisan Credit
Cards to farmers. The scheme circulated to commercial banks by RBI and cooperative banks
by NABARD. The major objective behind setting up of the scheme was to allowing for adequate and
timely support to farmers in agricultural activities by banks in a cost effective manner. The card had
been designed with the aim to provide benefits to farmers. A credit cum passbook also provided with
KCC to the farmer. The card had a repayment period of 12 months. The validity of the card lies for 3
years. Personal Accident Insurance up to Rs.50,000 offered to the card holder under Personal
Accident Insurance Scheme (PAIS).
Singh Harpreet (2007): studied on an analytical study of Kisan Credit Card Scheme in Punjab. He
analysed that the procedure, adequacy and efficiency of credit extended under the Kisan Credit Card
Scheme (KCCS) had been studied by selecting rural branches of Punjab and Sind Bank in the
Ludhiana zone (Punjab). It had been found that KCCS had enabled the timely and adequate credit to
the farmers. The KCC-farms had been observed to be performing better than non-KCC farms. About
73 per cent KCC beneficiaries had been found exploring other sources of credit also. Besides
exploring co-operatives, 30.8 per cent of the small and 29.0 per cent of the medium KCCbeneficiaries had been noted to be in the grip of money-lenders. Regarding simplification of
procedures for extending credit under KCCS, the study had been suggested issuing of landpassbooks, which accepted as a valid title for the purpose of land mortgaging.

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Rao Prabhakara (2006): studied on Can Banks Kisan credit card scheme. He analysed that Canara
Bank launched its new technology-enabled revised Kisan Credit Card Scheme (KCC Scheme). The
credit card was giving to farmers for meeting comprehensive needs of their farm and household
expenses also. The National Payment Corporation of India (NPCI) had been developed the debit
cards for Kisan credit card borrowers under its brand name of 'RuPay' cards. The credit facility of
Kisan Credit Card enabled through debit cards were helping farmers not only avail the loan from the
bank but also was providing the convenience of drawing cash from ATMs of Canara Bank as well as
others. The card also was facilitating the farmers to buy agriculture inputs like seeds, pesticides from
the dealers (who were member establishments) by swiping the cards. The programmes well-attended
and 100 debit (Rupay) cards distributed to the farmers, on the first day itself, the bank said. Canara
Bank had been planned to cover all its KCC farmers under the new scheme.

Kumar Sonali (2005): studied on Kisan credit cards fail to attract farmers. He analysed that Jammu
and Kashmir Government report pointed out that till 2004-end, not more than 74,301 cards issued in
the state involving a disbursement of Rs 283.7 crore. The banks to be blamed for the slow delivery
of credit to farmers. Agriculture department officials said many factors together responsible for the
scheme failing to attract farmers. Officials also added that one of the main reasons behind farmers
showing little interest in KCC that the latters rate of interest almost same as that of other loans.
The KCC scheme stipulates that the rate of interest had what the Central Advances Department
(CAD) fixed. Officials said the KCC scheme had begun picking up pace in the last few years. The
response to the credit card scheme had been poor when it launched. In 2005-06, as many as 11261
credit cards issued. Also the National Bank for Agriculture and Rural Development (NABARD) was
pushing the banks to give extensive coverage to the credit card scheme.

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Bansal Pwan (2004): studied on Kisan Credit Card. He analysed that the government said that
Farmers, who took agriculture loans through the Kisan Credit Card, covered under the Rs 60,000crore loan waiver scheme. Minister of state for finance Pawan Kumar Bansal said, the loan-waiver
scheme had been applicable to production credit and short-term inventory credit taken on the Kisan
Credit Card. Over 7 crore Kisan Credit Cards had been issued to farmers. The aim of the
Government had been to extend the Kisan Credit Card to all eligible farmers in the country. All
categories of farmers eligible for a Kisan Credit Card from the co-operative banks, regional rural
banks and commercial banks throughout the country.
Singla Naresh (2003): studied on efforts to improve the lot of farmers. He analysed that as part of
its efforts to improve the lot of farmers, Jammu and Kashmir State Cooperative Bank (JKSCB) had
been issued about 66,500 Kisan Credit Cards. Cooperative Banks of the State had been issued
around 66,500 Kisan Credit Cards to farming community of the State. The total deposits of
Cooperative Bank, which had been a network of 265 branches, reached Rs 2508.87 crore. Lauding
the efforts of JKSCB for increasing profits by 40 percent, the Minister advised all cooperative banks
in the State to switch over to the core Banking Platform by end of the current financial year. The
minister also stressed on the need to improve the credit-deposit ratio of the banks so as to reach the
national benchmark. The government was taking up a special drive to expand the Kisan Credit Card
(KCC) cover among farmers. Rs 11,535 crore of the state's entitlement of Rs 33,000 crore under
KCC had been disbursed and the drive was aimed at disbursing the remaining Rs 21,465 crore. KCC
had been a credit limit of Rs 50,000 for individual farmers and carries an interest rate of 7 per cent.
Timely payment entitles the debtor to a 3 per cent rebate.

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BIBLIOGRAPHY

http://articles.economictimes.indiatimes.com/2012-01-09/news/30607547_1_kisan-credit
debit-kcc

http://articles.timesofindia.indiatimes.com/2011-12-24/patna/30554576_1_kccs-paddyfarmers

http://www.deccanherald.com/content/260850/canbanks-kisan-credit-card-scheme.html

http://www.financialexpress.com/news/kisan-credit-card-borrowers-to-come-under-loanwaiver/285945/

http://www.indianexpress.com/news/kisan-credit-cards-fail-to-attract-farmers-jk-govtreport/428585/0

http://www.indianjournals.com/ijor.aspx?target=ijor:aerr&volume=17&issue=2&article=msc
abs-007

http://www.inflibnet.ac.in/ojs/index.php/KJAS/article/viewFile/787/750

http://www.moneylife.in/article/canara-bank-launches-technology-enabled-kisan-credit-cardscheme/26717.html

http://post.jagran.com/Kisan-Credit-Card-KCC-to-be-provided-to-every-farmer-in-Jammuand Kashmir-1343819086

http://www.rupeetimes.com/article/credit_cards/kisan_credit_card_allowing_easy_credit_acc
ess_to_farmers_4964.html

http://www.uyirvani.com/forums/topic/82841-superhit-old-bollywood-songs-from-1960s-to2000-

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