Kisan Credit Card and its Impact on Financial Inclusion in India

Jyoti Mishra¹ & Dr. Amar Kumar Chaudhary²¹Research Scholar Ranchi University
²Associate professor University Dept. of Commerce Ranchi University, India

DOI – http://doi.org/10.37502/IJSMR.2022.5206

Abstract

The Kisan Credit Card (KCC) scheme is an innovative step to help Indian farmers for fulfilment of country’s agricultural production needs by accessing the short term credit from the nationalized financial institutions. The KCC enables the farmers to purchase various agriculture products like seeds, pesticides, fertilizers and also facilitates for cash withdrawal to enhance the access to finance for the farmers and Financial Inclusion (FI) in India. As India’s general economic development has accelerated in recent years. Although KCC credit growth varies by district and slow considerably in certain regions. These trends are expected to persist in Indian agriculture unless sufficient funds or technical solutions are made to boost agricultural output. The purpose of this article is to conduct a systematic assessment for the Kisan (Farmer) Credit Card Scheme (KCCS), which was introduced by the Indian government in 1998-1999 to ease agricultural credit to farmers. Additionally, contribute to financial inclusion via KCC loans. Local governments and financial institutions should provide an encouraging environment that enables farmers and geographical regions to increase their credit process ability, while simultaneously accelerating credit flow and debt recovery.

Keywords: Agricultural productivity, Kisan credit card, Kishan credit card scheme, financial inclusion.

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