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Finance minister reviews progress of Kisan Credit Cards with PSBs and RRBs

The finance minister met with banks and RRBs to discuss the status of the KCCs issued to the animal husbandry, dairying and fisheries sectors.
Finance minister reviews progress of Kisan Credit Cards with PSBs and RRBs
Finance minister reviews progress of Kisan Credit Cards with PSBs and RRB (Representational image: Shutterstock)

In order to review operational and governance reforms in regional rural banks (RRBs) as well as the implementation of the Kisan Credit Cards (KCC) scheme for animal husbandry, dairying, and fisheries, Union Minister for Finance, Nirmala Sitharaman held a meeting, on Thursday, with heads of public sector banks (PSBs) and RRBs.

With the leaders of the sponsor banks and the chairmen of the RRBs, Finance Minister Sitharaman discussed the performance of the RRBs. The finance minister emphasised the vital function that RRBs in promoting financial inclusion and meeting the credit requirements of the rural economy. In order to further strengthen the RRBs and promote the post-pandemic economic recovery, Sitharaman encouraged the sponsor banks to develop a clear plan with a deadline. She also counselled IBA and sponsor banks to take the lead in RRB technical developments.

The finance minister recommended holding a workshop for RRBs so that they could exchange best practices. By the end of July, Sitharaman ordered all public sector banks to switch over to the account aggregator system. In the second session, Sitharaman met with banks and RRBs to discuss the status of the Kisan Credit Cards issued to the animal husbandry, dairying and fisheries sectors.

A special KCC saturation push was started under the Atmanirbhar Bharat Abhiyan to cover 2.5 crore farmers under KCC with a credit boost of Rs. 2 lakh crore in an effort to give the benefits of KCC loans to as many farmers as possible. It is noteworthy that as of July 1, 2022, 3.26 crore farmers (including 19.56 lakh farmers in the dairy, fishery, and animal husbandry sectors) were approved for credit up to a total of Rs. 3.70 lakh crore through the KCC plan.

The finance minister gave banks instructions to ensure that pending KCC applications are handled in a timely manner while underlining the importance of fisheries and animal husbandry to the economy during the thorough examination of performance. Additionally, FM asked banks to host camps for saturating all KCC participants in the cattle-rearing and fishery industries.

Parshottam Rupala, the Union Minister for Fisheries, Animal Husbandry, and Dairying, who was also present at the meeting, praised the banks’ efforts in providing KCC to farmers in the fisheries and animal husbandry sectors and urged them to consider the unique needs of small fishermen and those who raise cattle when sanctioning loans under the KCC scheme.

To ensure that the benefits of the KCC plan are distributed to the greatest number of eligible beneficiaries, Sitharaman gave the officials the directive to conduct regular reviews of the KCC system’s performance with all stakeholders.

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