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Kisan Credit Card (KCC) Fisheries Scheme


Why is it in the news?

  • The Department of Fisheries has integrated the Kisan Credit Card (KCC) Fisheries scheme into the JanSamarth Portal to enhance credit accessibility for fishers, fish farmers, and stakeholders nationwide.
·       JanSamarth Portal is an innovative online platform facilitating direct linkage between lenders and beneficiaries, enabling citizens to access loans from 13 Central government schemes categorized across four loan categories efficiently.

About KCC Fisheries Scheme

  • Initiated in 2018-19, the KCC Fisheries Scheme extends the benefits of the Kisan Credit Card facility to fishers and fish farmers, specifically designed to cater to their working capital needs in the fisheries sector.
  • Encompasses various categories of farmers engaged in fisheries, including individuals, joint borrowers, Joint Liability Groups, and Self-Help Groups, aiming to provide financial assistance and support for their operations.
  • Provides substantial subsidies to facilitate credit accessibility: An annual interest subsidy of 2% to reduce the financial burden on borrowers; and an additional subsidy of 3% for timely repayment, incentivizing responsible credit management.
About Kisan Credit Cards (KCC) Scheme

·       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.

 

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