Government Boosts Farmer Support with Enhanced Kisan Credit Card Access

The Union government has unveiled a series of measures designed to bolster support for farmers, emphasizing the increased accessibility of Kisan Credit Cards (KCC). The initiative, as per the Ministry of Finance, includes digital issuance across states and union territories, aimed at enhancing financial inclusion among agricultural communities.

Under the Priority Sector Lending (PSL) guidelines set by the Reserve Bank of India (RBI), various banks, including Commercial and Regional Rural Banks, are mandated to allocate specific credit targets to agriculture. This policy ensures a designated 18 per cent of their credit is routed towards agricultural needs, with a 10 per cent sub-target for small and marginal farmers.

From 2019, the KCC scheme has expanded to meet the working capital needs of animal husbandry, dairy, and fisheries. The Modified Interest Subvention Scheme (MISS) by the government provides loans at concessional rates through KCCs, further incentivizing timely repayments with additional interest reductions to support the sector extensively.