Tuesday, April 19, 2011

State Bank Of Patiala KCC

There are two modes of KCC offerings by SBP, namely
1. ACC (PBKCC – Patiala bank Kisan credit card)
2. ATL (PBKGC – Patiala bank Kisan gold card)

Scheme for financing under PBKCC – Patiala bank Kisan credit card
Scheme aims to meet production (i.e. farm inputs), ancillary needs (repair to farm, machinery and other domestic needs) and contingency needs of farming community.
All farmers irrespective of land holding with production are eligible.
Credit limit
Credits limit worked out as per scale of finance. 100% loan in addition to scale of finance for meeting ancillary needs of the farmer. Working capital requirement for allied activities and contingency requirement of 40% of production limit shall be added for calculating the limit. Working capital will be further be supplemented for the farmers owning animals.
 Hypothecation of crop upto Rs. 50,000/-
 Hypothecation of crop and mortgage of land/charge over land for cards above 50,000/- valuing 150% the loan amount.
Card is valid for 3 years
Salient features
 Personal insurance cover available upto Rs. 50,000
 ATM cards issued to illiterate farmers.

PBKGC – Patiala bank Kisan gold card
To meet term needs of farmer, to cover agricultural (other than production) and consumption needs of farmer.
Farmers having own land, with good track record irrespective of land holdings.
Quantum of loan:-
Equivalent to :
a) 5 times annual farm income
b) 50% of value of land mortaged whichever is less – maximum of Rs. 10.00 lac.
Quantum of consumption loan needs will be restricted to 20% of the overall limit sanctioned or maximum of 1.00 lac which should be calculated before deducting the term loans, outstanding in the farmers account.
80% of limit can used for creation of any productive asset other than:-
1) Purchase of land
2) Cost to farm house
3) Purchase of tractor and its accessories.
Margin security
10% hypothecation of assets.
Mortage of land valuing double the loan amount.

Salient features:-
1) Cash disbursed to full extent
2) No bill required

Details About KCC

Kisan Credit Cards were started by the Government of India, RBI (Reserve Bank of India), and NABARD (National Bank for Agricultural and Rural Development) in 1998-99 to help farmers access timely and adequate credit.
The Kisan Credit Care allows farmers to have cash credit facilities without going through the credit screening processes repeatedly. Repayment can be rescheduled if there is a bad crop season, and extensions are offered for up to 4 years. The card is valid for 3 years and subject to annual renewals. Banks in India that lend for agricultural purposes usually offer the KCC. Withdrawals are made using slips, cards, and a passbook.
KCC OFFERED BY IDBI Crop Loan with Kisan Credit Card
Credit to Farmers/ Group of farmers for Crop Loan, working capital or investment credit for viable agriculture purpose.
Who is the eligible for the Loan? All Farmers/ Owner cultivators, tenant cultivators and Share croppers / Individual farmer having agreement with institution.

The features of the scheme at a glance are:
• Type of revolving cash credit facility with unlimited withdrawals and repayments.
• Meet the production credit need, cultivation expenses, and contingency expenses
of the farmers.
• Limits based on the basis of operational land holding, cropping pattern and scale
of finance. This limit is inclusive of 20% of production credit.
• Each withdrawal to be paid within 12 months.
• Card valid for 3 years subject to annual renewals.
• Credit limits can be enhanced depending on performance and needs.
• Rescheduling is also possible depending upon the situation. If for example the
crops fail due to a natural calamity and the farmer is not able to repay his loan,
then he could get an extension of upto four years.
• Cash withdrawals through slips accompanied by card and passbook.
• A credit cum passbook would be issued.
• All branches engaged in agricultural lending could issue Kisan Credit Cards.

Borrowers with good track record over the past 2 years would be the prime customers.
New borrowers could also be included if they could get proof of operational land
holding from the Patwari.

Target group
Short-term crop loans required by existing/new borrowers

Selection methodology
The farmer would be evaluated by the bank, on financial grounds by looking at his
past record with the bank, and on personal grounds by looking at his reputation in the

Fixation of credit limit
The credit limit under the card may be fixed on the basis of the operational land
holding, cropping pattern and the scale of finance by the District Level Technical
Committee (DLTC) and SLTC. If the limit has not been fixed by the DLTC/SLTC or
the limit in the opinion of the bank is low, appropriate scale of finance for the crop
may be fixed by the bank.

Validity and repayment schedule
A card once issued would be valid for a period of 3 years. The facility may be
extended, the amount enhanced or cancelled, depending on the performance of the
farmer. Repayments are to be made within 12 months of taking the credit.

• For loan amount upto Rs. 10,000: NIL
• For amount over Rs. 25,000: 15% to 25%

• Loan Amount security to be furnished
• Upto Rs. 10,000 DPN (demand promissory note) / loan agreement is needed only
• Rs. 10000 and upto Rs. 25,000 Hypothecation of crops is required.
• Above Rs. 25,000 Hypothecation of crops and mortgage of land (or) third party
guarantee is needed

This is subject to change.
Amount of Interest for Repayment period:

Upto one year Exceeding one year
• Upto Rs. 25,000 11 % 11 %
• Above Rs. 25,000-Rs. 2,00,000 12 % 12 %
• Above Rs. 2,00,000-Rs. 25,00,000 13.5% 13.5%
• Rs. 25,00,000 and above
(Depending on Credit Risk Rating) 13.25% to 15.5% 13.25% to 15.5%
By March 20, 2001, around 1,32,44,397 cards had been issued by agencies all over the
country, with the amount sanctioned close to Rs. 24615.17 crore. Contributions of
cooperative banks, RRB’s and commercial banks have been 67.35%, 5.7%, and 27%

NABARD/RBI Initiative

Financial Inclusion (FI) has been RBI’s policy priority
FI seen as a tool for inclusive growth ensuring equality of opportunity for all
The focus has been in facilitating the process that a range of appropriate financial products and services is available to underprivileged sections at an affordable cost.

Financial Inclusion – Phases & Steps Taken
Steps Taken
 Co-operative Movement
 Setting up of State Bank of India
 Nationalisation of banks
 Lead Bank Scheme
 RRBs
 Service Area Approach
 Self Help Groups
Process: Phases
1) 1950-70: Consolidation of the
Banking sector & Facilitation
of Industry and Trade
2) 1970-90: Focus on channelling of credit to neglected sectors and weaker sections
3) 1990-2005: Focus on Strengthening the financial institutions as part of financial sector reforms
4)2005 onwards: Financial Inclusion was explicitly made as a policy objective

Steps Taken by RBI- Credit Delivery Focus
 From 1994-95, public sector banks in India have been formulating Special Agricultural Credit Plans (SACP) with a view to achieve distinct and marked improvement in credit flow to agriculture
 The Kisan Credit Card (KCC) scheme was introduced from 1998-99
 Credit innovations like micro finance have also evolved as socially significant and commercially attractive models of credit delivery
 The early 1990s saw the emergence of the Self Help Group concept –
 The pilot programme started by NABARD in 1992 and actively supported by the Reserve Bank saw the banks taking a key interest in promoting the programme
 The SHG- Bank linkage programme has so far become the largest microfinance programme in the country
 As on March 31, 2008, a total of 3.6 million SHGs with a total outstanding bank loan of Rs.17,000 crore were credit linked with the banks
 As on March 31, 2008, a total of 5.0 million SHGs were having savings bank accounts with the banking system of which the commercial banks had the maximum share (56.0 per cent) followed by the RRBs (28.0 per cent) and cooperative banks (16.0 per cent

List Of Banks Offering kisan Credit Card

Allahabad Bank - Kisan Credit Card (KCC)

Andhra Bank - AB Kisan Green Card

Bank of Baroda - BKCC

Bank of India - Kisan Samadhan Card

Canara Bank - KCC

Corporation Bank - KCC

Dena Bank - Kisan Gold Credit Card

Oriental Bank of Commerce -Oriental Green Card (OGC)

Punjab National bank - PNB Krishi Card

State Bank of Hyderabad -KCC

State Bank of India -KCC

Syndicate Bank -SKCC

Vijaya Bank -Vijaya Kisan Card


Provision of timely and adequate credit has been one of the major challenges for banks in India in dispensation of agricultural and rural credit to the farmers. Constant innovation is required in order to achieve the aim. Agricultural credit cards are not a new concept in the field of agricultural banking in India. The scheme had already been introduced in a number of public sector banks in a few states much earlier. These schemes were niche-marketed and were exclusively preserved for the privileged class of farmers and the small and marginal farmers did not have much access to them.
Similarly cash credit facilities were being extended by several public sector banks and cooperative banks to farmers with the view to improving their access to credit. Again this scheme was used only selectively. The KCC scheme was started by the
Government of India (GOI) in consultation with the RBI (Reserve Bank of India) and NABARD (National Bank for Agricultural and Rural Development) 1998-99 to join the features of both these schemes and to overcome their shortcomings.