On August 26, 2019, The country’s central bank, Reserve Bank of India(RBI) has issued guidelines on Interest Subvention Scheme (ISS)for Kisan Credit Card (KCC) to Fisheries and Animal Husbandry farmers during the year 2018-19 and 2019-20.
Key points:
i. The RBI directed the central Government to operate the interest subvention guidelines.
ii. Apart from existing KCC holders for crop loans, the farmers involved in activities related to Animal Husbandry and Fisheries, through a separate KCC will get at a concessional interest rate of 7% per annum during the years only 2018-19 and 2019-20 for the short loan up to Rs. 2 lakh. The Interest subvention is available for animal husbandry and fisheries farmers at the rate of 2% per annum at the time of disbursal of loan.
iii. The additional interest subvention of 3% per annum given to farmers, who repaying in time i.e up to the due date fixed by the banks for repayment of the loan, whichever is earlier. This subvention will also provided to the farmers repaying promptly would get short-term loans at the rate of 4 % per annum during 2018-19 and 2019-20.
iv. The interest subvention will be provided on a maximum limit of Rs 2 lakh short-term loan to farmers involved in animal husbandry &fisheries. The farmers already possessing KCC for raising crops and involved in animal husbandry and fisheries activities can avail a sub-limit for such activities.
Nonetheless, the interest subvention & prompt repayment incentive benefits will be available only on an overall limit of ₹ 3 lakh per annum on availing short term loan for the crop , animal husbandry, and fisheries activities.
v. The RBI also directed the banks to make Aadhar linkage mandatory for availing short-term loans for Animal Husbandry and Fisheries in 2018-19 and 2019-20.
vi. The ISS will be placed on the ISS portal / DBT (Direct Benefits Transfer )platform & it will be put on DBT mode on ‘In-Kind/services’ basis.
vii. The banks are asked to make aware of the people about scheme so that the eligible farmers can avail the benefits.
viii. The interest subvention scheme will be launched by the Ministry of Agriculture and Farmers Welfare for settling claims arising from 2018-19.
ix. The banks also directed to submit the category wise data of beneficiaries under the scheme to RBI and report the same on ISS portal.
x. On July 2, 2019, Kisan Credit Card (KCC) has been extended by the Government to fisheries and animal husbandry farmers in order to assist them to meet their working capital needs.
About KCC:
KCC is a credit scheme introduced in August 1998 by Indian banks. This model scheme was prepared by the National Bank for Agriculture and Development (NABARD) on the recommendations of R.V. Gupta committee to provide term loans and meet agricultural needs.
About RBI:
♦ Headquarters: Mumbai
♦ Established: 1 April 1935
♦ Governor: Shaktikanta Das