THE MINISTER OF STATE IN THE MINISTRY OF FINANCE (SHRI PAWAN KUMAR BANSAL)
(a) to (d) As on 31 March 2006, a total of 590.93 lakh Kisan Credit Cards (KCCs) were issued by Cooperative
Banks, Regional Rural Banks (RRBs) and Commercial Bank in the country. With a view to enhancing coverage
under the KCC Scheme, Banks have been advised to make efforts to bring into KCC fold the farmers including
defaulters, oral lessees, tenant farmers etc. who may be outside the fold of the KCC scheme, for any reasons,
as also new farmers. The scope of the scheme has also been enlarged to cover term loans/working capital loans
for agriculture and allied activities, including a reasonable component of consumption needs of the farmers.
Banks have been further advised that the crop loans are routed only through KCC.
As regards interest rate, RBI has stipulated that interest rate on loans by Commercial Banks upto Rs. 2.00 lakhs
should not exceed the Benchmark Prime Lending Rate (BPLR). The interest rate of Cooperative Banks and RRBs
have been completely deregulated. Further, the guidelines have been issued to provide Short Term Production
Credit @ 7% per annum upto a principal of Rs. 3 lakhs during 2006-07. It has been decided to provided interest
subvention of 2% to public sector banks and regional rural banks and concessional refinance by NABARD to
RRBs and Cooperative Banks for this purpose.
(e) and (f) As and when such compliants are received, they are forwarded to the banks for necessary action.
