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Karnataka Bank implements revised RBI norms on KCC
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MANGALORE: Karnataka Bank Ltd. has introduced the revised guidelines of Reserve Bank of India on Kisan Credit Card (KCC) scheme. This will help large section of farmers across India. As per the scheme which is effective from November 15, farmers can avail working capital loan in the form of overdraft for raising various crops and maintaining their farm equipments and also term loan for meeting their investment credit requirements.
The period of KCC is for five-years and farmers have the option to renew the overdraft every year with 10% increase in the limit.
The overdraft facility is useful to farmers as it is an operative account and they can credit the sale proceeds of various crops to the account and utilize it when required. Bank has also planned to introduce ATM card enabled transactions to the farmers under the scheme as per guidelines of the apex bank.
Bank is targeting to disburse Rs 1,000 crore in agriculture sector during 2012-13 and Kisan Credit Card scheme is one of the important channels for disbursing agriculture credit. As on date, the city based private sector Bank has issued 17,791 Kisan Credit Cards to farmers with aggregate amount of Rs 202.21 crore. All the 500-odd branches of the bank are empowered to lend under the KCC scheme, P Jayaram Bhat, MD and CEO said.
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