Indian co-ops offer more KCCs than commercial rivals

by Richard Kilner

Story link: Indian co-ops offer more KCCs than commercial rivals

Despite controlling a larger share of agri credit, India’s commercial banks are some way behind their co-operative rivals when it comes to Kisan Credit Cards.

The KCCs have existed for 10 years, and were designed to enable a more flexible form of credit for farmers that would be easy and inexpensive.

Over that decade, the industry has issued 7.07 crore KCCs, with 3.31 crore issued by co-operative firms.

By contrast, commercial banks have issued only 2.73, under 40% of the total.

The banking system as a whole appears to be on target to hit the 5 million farmer credit mark, supplying them with Rs 2,25,000 cr of credit.

The importance of the agricultural sector has been focused upon by the government, leading to cooperative banks and RRBs being advised to identift and cover every type of farmer, particularly those that may have fallen outside the KCC plan.