(a) the maximum limit of loan sanctioned through Kisan Credit Cards (KCCs);
(b) the number of applications for KCC lying pending as on date, bank, State/ UT-wise including Maharashtra; and
(c) the steps taken by the Government to expeditiously process the pending KCCs?
The Minister of State in the Ministry of Finance
(a) to (c): The credit limit/ loan amount under Kisan Credit Cards (KCC) is fixed by Banks as per guidelines prescribed in the Master Circular dated July 3, 2017 issued by RBI. The short term credit limit under KCC for the first year is determined based on 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 and/or accident insurance including personal accidental insurance scheme (PAIS), health insurance & asset insurance. The limit for second and subsequent years (3rd, 4th and 5th year) is arrived based on first year limit for crop cultivation purpose plus 10% of the limit towards cost escalation / increase in scale of finance and estimated term loan component for the tenure of Kisan Credit Card, i.e., five years.
The short term loan limit arrived for the 5th year plus the estimated long term loan requirement will be the Maximum Permissible Limit (MPL) and is to be treated as the Kisan Credit Card limit.
NABARD has reported that the data pertaining to number of applications for KCC pending with the banks is not maintained centrally. However, Government fixes agriculture credit disbursement targets for the banking sector every year and banks have consistently surpassed these targets.