Karnataka Bank implements RBI’s revised guidelines to KCC scheme

Karnataka Bank implements RBI’s revised guidelines to KCC scheme

Mangalore Today News Network

Mangalore, Nov 28, 2012: The Karnataka Bank Limited’s implementation of RBI’s revised guidelines for Kisan Credit Card (KCC) scheme will be of great help to farmers all over the country. This scheme, which was brought into effect on Nov 15, provides farmers working capital loan to raise crops and maintain their farm equipment and term loans to meet their investment credit requirements.

The KCC is a 5-year scheme with the option to renew the draft every year with a 10% limit increase. The overdraft facility helps farmers because it is an operative account, which allows them credit sales proceeds of crops and use it whenever required. The bank is also planning to introduce ATM card enabled transactions under the scheme according to the RBI guidelines.

The bank’s goal is to distribute Rs. 1000 crore in the agricultural sector in 2012 – 13 through the Kisan Credit Card Scheme. So far, the bank has issued 17,791 KCC cards to farmers with an aggregate amount of Rs. 202.21 crore. The bank has around 500 branches, each of which has the power to lend under the KCC scheme.