Progress and Performance of Kisan Credit Card Scheme in Jammu and Kashmir

Abstract

Institutional credit has played a very important role in the development of the agricultural sector. In fact, credit acted as a means to provide control over resources to enable the farmers to acquire the required capital for increasing agricultural production. The major success of green revolution in Indian agriculture to a large extent is the impact of institutional credit support to the agricultural sector in terms of expansion in inputs like fertilizers, irrigation, private capital formation, etc. The introduction of a new credit product called ‘Kisan Credit Card’ (KCC) in 1998–99 with three different sub-limits viz. production, asset maintenance and consumption needs are a step in this direction. Since inception of the scheme up to March 2012, banking system has issued 124365 numbers of KCCs in the Jammu and Kashmir state. The corresponding number of cards issued at all India level as on October, 2011 has been 1078.36 lakh. In the number of KCCs the share of commercial banks is maximum i.e. 51.32%, this is followed by 45.97% share of RRBs and only 2.71% is contributed by the co-operative banks. The total bank branches in financial year 2010–2011 were 1302 whereas it was 1449 in the financial year 1011–12. Progress in issuance of KCCs by banks in J&K for the financial year 2010–2011 the target was 27466.36 lakh and achievement was only 14.23%. In Jammu region total coverage was 37.53% in different districts whereas in Jammu district the coverage was 39.75%. Highest number of farmer's coverage under KCC in Jammu region made in Samba district (85.22%).