Budget 2023: Agriculture schemes like Kisan Credit Card can see some major changes
The Union Budget 2023 can reform schemes like Kisan Credit Card and also expand access to include all farmers. The state-run banks have been asked to use the PM Kisan database to ensure that all farmers are included under KCC.
January 25, 2023 / 10:06 AM IST
Schemes like Kisan Credit Crad could be reformed in the upcoming Budget.
Budget 2023 can come up with incentives for some of the agriculture schemes. The government can review some of the schemes like Kisan Credit Card to plug gaps and make them more effective in helping small and marginal farmers.
In a recent report, SBI Research said that the payment of interest should be enough for renewal of KCC loans.
"Renewal for KCC loans requires payment of both principal and interest, to ensure interest subvention. It is proposed that the payment of interest should be enough condition for renewal of KCC loans of small and marginal farmers for amounts up to Rs 3 lakhs," the report said.
KCC comprises 60% of the outstanding credit by banks worth Rs 15.9 lakh crore to agri & allied activities.
The report expects Union Budget for 2023-24 to also consider a credit guarantee scheme for agriculture.
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Speaking to moneycontrol, former SBI Bank chairman, Rajnish Kumar, said that the government should reform schemes like Kisan Credit Cards which leads to high NPAs.
“A relook at the Kisan Credit Card scheme is required. The scheme is old fashioned and leads to high NPA (non-performing asset),” he said.
Recently, the secretary of Department of Financial Services under the Ministry of Finance, Dr Vivek Joshi, asked heads of Public Sector Banks to take up the PM Kisan database to expand access to KCCs by farmers.
