·       Introduced in 1998 as a vital initiative to provide timely and adequate credit to farmers for various agricultural activities and allied purposes, following the recommendations of the R.V. Gupta committee.

·       Aims to address the short-term credit requirements of farmers comprehensively, covering expenses such as farming operations, post-harvest costs, marketing, consumption, maintenance of farm assets, and investments in agricultural ventures.

·       The scheme is facilitated by various financial institutions, including Commercial Banks, Regional Rural Banks (RRBs), Small Finance Banks, and Cooperatives, ensuring widespread coverage and accessibility.

Features:

·       Provision of an ATM-enabled RuPay debit card for convenient access to funds.

·       Streamlined processes and simplified documentation procedures to facilitate hassle-free credit access.

·       Government initiatives such as interest rate reductions and rewards for timely repayment to make agricultural loans more affordable and encourage responsible borrowing practices.

·       Mandatory linking of Aadhaar to avail interest rate reductions, ensuring transparency and compliance.

·       Initially focused on providing credit for farming activities, the scope of the scheme was expanded in 2004 to cover investment credit requirements beyond traditional farming practices.

·       Further extended in 2018-19 to include fisheries and animal husbandry farmers, reflecting the government’s commitment to diversifying and strengthening agricultural financing mechanisms.