Published on: January 2, 2023

Kisan Credit Cards

Kisan Credit Cards

Why in news? Among five States in southern India, Karnataka has the highest operative Kisan Credit Cards (KCCs) issued by cooperative banks, regional rural banks, and commercial banks


  • Andhra Pradesh secured second position followed by Telangana, Tamil Nadu and Kerala, according to the RBI’s Report on Trends and Progress of Banking in India 2021-22”

Karnataka’s Performance

  • In cooperative banks, again Karnataka topped the list with an existence of operative of 31.25 lakh KCCs
  • The recovery of loans issued by cooperative banks in Karnataka recorded at 1% against the southern region’s average of 90.9%( as on June 2020)

RRBs in various States

  • KCCs issued by Regional Rural Banks is highest in Telangana followed by Andhra Pradesh, Karnataka, and Kerala.

Commercial banks

  • Highest in Kerala Andhra Pradesh, Tamil Nadu, and Telangana(March 2022).

About Kisan Credit Cards

  • a credit scheme introduced in 1998 by Indian public sector banks
  • Model scheme : By the NABARD on the recommendations of the R. V. Gupta Committee to provide advances for agricultural needs.
  • Objective : To meet the comprehensive credit requirements of the agriculture sector ,fisheries and animal husbandry by giving financial support to farmers.
  • Participating institutions : Commercial banks, Regional Rural Banks, and state co-operative banks.
  • Scheme entails short-term credit for crops and term loans.
  • Coverage of personal accident insurance: 50,000(death and permanent disability), and Rs. 25,000 for other risks.
  • Premium : Borne by both the bank and the borrower in a 2:1 ratio.
  • Validity period : Five years, with an option to extend it up to three more years.
  • KCC credit to the farmers is of two types,
  • Cash Credit (for working capital)
  • Term Credit (for capital expenditure such as the purchase of cattle, pump sets, land development, plantation, drip irrigations), etc.