Question

What is the full form of KCC, a scheme introduced by the Government of India for the benefit of the farmers?
A. Kissan capital card
B. Kissan credit card
C. Krishak credit card
D. Krishak capital card
E. None of these.

Answer 1

Hint: It is a facility given by the government to the farmers which allows them to obtain goods and services before payment, based on the trust that the payment will be made in the future.

Complete answer:
KCC is the abbreviation of Kissan Credit Card. Kissan Credit Card is a large-scale systematic plan brought by the Government of India in the year 1998 of August month. R.V.Gupta recommended this scheme to National Bank for Agriculture and Rural Development(NABARD) to provide term loans for agricultural needs. Kisan credit card was a thing aimed at dealing with all or nearly all elements or aspects requirements of the agriculture sector and by 2019 for fisheries and animal husbandry by giving financial support to farmers. Regional rural banks, state cooperative banks, and all commercial banks are the participating institutions. Kissan credit card provides a short term facility to obtain goods and services which has credit limits for crops, and term loans. Farmers having Kissan Credit Cards are covered under personal accident insurance up to 50,000 rupees for death and permanent disability, and up to 25,000 rupees for other risks. Premium is borne in a 2:1 ratio by both, the bank and the borrower. The Kissan Credit Card comes with a validity of five years which can be further extended up to three more years. Kissan credit card offers credit to farmers in two types, 1. Cash credit 2. Term credit.
The features of Kissan Credit Card are-
Get interest at a saving bank rate on the credit balance in the KCC account.
Free ATM cum debit card (State Bank Kisan Card) for all KCC borrowers.
Notified crops / notified areas are covered under crop insurance for all KCC loans.
Quantum of loan for 1st year will be assessed on the basis of the cost of cultivation, post-harvest expenses, and farm maintenance cost.
For subsequent 5 year loans will be sanctioned on the basis of the increase in the scale of finance.

The correct answer is option B.

Note: Kissan credit card provides a facility where collateral security is waived for a limit up to 1.60 lacs. A sanctioned KCC limit will be considered for the purpose of fixing collateral security requirements. A simple interest at 7% p.a will be charged for one year or up to the repayment due date, whichever is earlier. In case of non-repayment within the due dates, interest is applied at the card rate.