THE MINISTER OF STATE IN THE MINISTRY OF FINANCE AND COMPANY AFFAIRS
(SHRI ANANDRAO VITHOBA ADSUL):
(a) No, Sir. Banks estimate the number of eligible farmers from the data on the ground
level borrowings of banks loans.
(b) National Bank for Agriculture and Rural Development (NABARD) have reported that since
inception 2,61,94,845 Kisan Credit Cards {KCCs) have been issued by the banking sector
comprising public sector banks, co-operative banks and regional rural banks, as on
31st August, 2002 (latest available).
(c) To expedite the process of issuing KCCs to small and marginal farmers,banks
have been instructed to consider issue of KCCs for production credit even below
Rs. 5000/- at their discretion. Instructions have also been issued to all banks to ensure
the issue of KCCs to ail eligible farmers in a time frame of three years i.e. by March
31, 2004. Banks have been advised to launch intensive publicity campaign to generate
greater awareness about KCC particularly among small and marginal fanners.
(d) and (e) RBI has reported that ft had conducted an in-house study through its
regional offices on the implementation of KCC Scheme in commercial banks. The findings
of the study revealed that the scheme has been well received by farmers in terms of
timelessness, hassle-free operations as also adequacy of credit including for consumption.
Bankers were of the view that the scheme has resulted in reduction of both transaction cost
and documentation. However, the operational problems in implementation and in outreach
so as to cover all eligible farmers under the scheme have been on account of lack of
updation of land records, small land holding and illiteracy of borrowers, etc. RBI has
also advised all scheduled commercial banks to rectify the deficiencies which emerged
in the Study.
