On September 19, 2022, the Federal Bank launched a pilot for instant Kisan Credit Card (KCC) lending in order to digitalize rural finance in select districts of Tamil Nadu (TN). The instant KCC was developed by the Reserve Bank Innovation Hub (RBIH), a subsidiary of Reserve Bank of India (RBI). It is digital loan scheme.
Key Points:
i.This digital loan scheme will be an easy experience for the farmers as compared to the conventional method of lending in terms of convenience and turnaround time.
ii.The platform will use e-KYC (Know Your Customer) and eSign, Application Programming Interface (APIs) developed by the Tamil Nadu E-Governance Agency (TNeGA), and credit history from bureaus to process loans to farmers in a matter of few minutes.
Earlier this month, RBI announced the pilot for KCC lending in Madhya Pradesh and Tamil Nadu in September with Union Bank of India and Federal Bank, respectively, as partner banks and with active cooperation of the State governments.
Union Bank of India launches end-to-end digitalization of Kisan Credit Card
Union Bank of India (UBI) also launched end-to-end digitalization of KCC product for farmers as part of its flagship digital transformation project ‘Sambhav’. It was launched by Ms. A Manimekhalai, MD & CEO, UBI in Harda District of Madhya Pradesh (MP), as Pilot Project.
- This product envisages to make the KCC lending process more efficient and farmer friendly.
- It is also aimed at overcoming the challenges faced by farmers like in-person visit to a bank branch, submission of land ownership and other documents, and high turn-around time in getting the KCC.
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About Union Bank of India:
MD & CEO– A Manimekhalai
Headquarters– Mumbai, Maharashtra
Tagline– Good People to Bank with
About Federal Bank:
MD & CEO– Shyam Srinivasan
Headquarters– Aluva, Kerala
Tagline– Your Perfect Banking Partner
