Kisan Credit Card-A Financial Innovation in Agriculture Credit Market

Kisan Credit Card is a pioneering credit delivery innovation for providing adequate and timely credit to farmers under single window, with flexible and simplified procedure, adopting whole farm approach. The purpose behind launching this innovative product is to provide hassle free credit to farmers in there need. The process of financial reforms emphasised on the need of evolving some novel credit interventions from the financial institutions to support the farmers. In this backdrop, launching of Kisan Credit Cards (KCCs) in 1998–99 was one of the innovative credit delivery mechanisms introduced in the country to promote financial inclusion. The introduction of modern technology in agriculture sector has led to intensive use of inputs, resulting in manifold increase in the requirement of production credit. To increase the flow of credit to agricultural and allied sectors from formal sources. It has been the constant endeavour of NABARD to cover all the farmers under the KCC About 1262 lakhs of Kisan Credit Cards have been issued up to end of2012-13 by the banks throughout the country and the overall cumulative sanctioned amount was 754230 crores. The commercial banks have issued the total highest number (47 percent) of KCCs amongst the three agencies followed by co-operative banks (38 percent) and followed by RRBs (14 percent). Overall CAGR of total KCCs issued was 8.9 per cent and overall CAGR of total amount sanctioned was 24.35 per cent. The KCC scheme has played a catalytic role in facilitating farming and boosting farm income.