F.No. 3/5/2020-AC
GOVERNMENT OF INDIA
Ministry of Finance
Department of Financial Services
Jeevan Deep Building,
Parliament Street, New Delhi,
Dated: 24th September, 2021
To
1. MD & CEOs of all PSBs
2. Chairman NABARD
Subject:- KCC for Animal Husbandry, Dairying and Fisheries-reg.
Sir,
As you are aware, RBI vide their Master Circular dated 4.2.2018 extended the KCC facility to the farmers engaged in animal husbandry and fisheries for their working capital requirement. Further, keeping in view the importance of livestock sector and its contribution to overall GDP in agriculture, a separate target of Rs.61,650 crore has been earmarked for animal husbandry and fisheries within the overall term loan target of Rs.6,80,000 crore for agriculture during 2021-22.
2. To further streamline the process of credit delivery through KCC to the animal husbandry and fisheries farmers, a Standard Operating Procedure (SOP)/Guidelines for issue of separate KCC for animal husbandry, dairy and fisheries farmers have been finalised (enclosed at Annexure) in consultation with the stakeholders including Ministry of AHDF, RBI, NABARD and IBA.
3. PSBs and NABARD in respect of Cooperative Banks and RRBs are advised to use the SOP as a guiding document and determine the operational aspects of KCC in accordance with their board approved policies.
4. While issuing separate KCC for animal husbandry, dairy and fisheries, Banks may look into the operational aspects with respect to issuing KCC to crop or allied activities separately or together. It is clarified in this regard that stand-alone separate KCC for allied activities may be issued exclusively for animal husbandry, dairy , fisheries and other allied activities. In case of composite KCC, which includes credit facility for agriculture and allied activities or augmentation of credit limit on the existing KCC (agriculture) due to add on requirement for allied activities, no separate KCC should be issued.
Yours faithfully,
(A.K.Das)
Deputy Secretary
Email: [email protected]
Ph.No : 23748736
Enclosure: as above
CC:
1. Ms.Varsha Joshi, JS (CDD), DAHD wrt d.o. letter dated 05.08.21
2.CEO IBA, with the request to issue similar advisory to Private Sector Banks.
Download Draft Guideline for Animal Husbandry and Fisheries Kisan Credit Card -Applicant PDF
