The FM is asking the bank secretary to submit a report on the withdrawal of KCC loans from banks

Finance Minister Nirmala Sitharaman on Tuesday asked  Financial Services Ministry secretary Vivek Joshi to submit a report within a month on why commercial banks are slowing the disbursement of  Kisan Credit Card (KCC) property loans while ensuring compliance by banks. uploading the necessary data by December 31. Launching the Kisan Rini Portal (KRP) and KCC Ghar Ghar Abhiyaan campaign to extend the benefits of KCC to every farmer, Sitharaman said that the charges and penalties imposed under KCC by both Scheduled Commercial Banks (SCBs) and cooperative sector are totally counterproductive. Although the credit sanctioned by payment banks is greater than that of the cooperative sector,  the share of payment banks in payments is smaller than that of cooperatives. 

 Active loan 

 At the beginning of the conference,  Pradhan Mantri Fasal Bima Yojana CEO Ritesh Chouhan made a presentation showing that out of ₹ 8.47 crore sanctioned, SCB’s share was 58 percent, while KCC (meaning payment) share of total active credit across all institutions by payment. banks are 37 percent. In contrast, the share of the cooperative sector was 22 percent and regional rural banks (RRBs) accounted for 20 percent of the sanctioned KCC credit. But in expenditure, the share of the cooperative sector was 46 percent and the share of RRB was 17 percent. 

 “The difference between the health amount and the payment varies considerably. SCBs seem to punish better but cost less. On the other hand, in cooperatives, the number of sanctions is lower, but the payouts are higher. He said I have to understand why there is such a strong contrast in the performance of payment banks and cooperative banks. With the agriculture ministry starting the campaign under KCC on October 1 and all banks, cooperatives, and RRBs having to upload all data by December 31, Sitharaman assured that banks will definitely meet the deadline as it covers 7.3 million KCC- beneficiaries which also includes fishermen and dairy farmers. 

  KCC Gate 

 Sitharaman said the government has allocated sufficient funds under the KCC scheme to ensure easy access to short-term loans for farmers and their participation in the scheme. In addition, he said, real-time crop assessment helps the economy and ensures that farmers get the right prices at the end of the harvest season. Speaking on the occasion, Agriculture Minister Narendra Singh Tomar said the budget of the agriculture department has increased from ₹ 23,000 crore (2013-14) to ₹ 1,25,000 crore (2023-24). He also said that as around 9 million beneficiaries have been identified and confirmed under the PM Kisan program, the  KCC Ghar Ghar Abhiyaan aims to connect around 1.5 million beneficiaries who are not yet covered under the KCC scheme.

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