The Role of Data Analytics in Kisan Credit Card for Sustainable Development

Abstract

Agriculture is the main occupation in India as the large population is living in rural areas and having agriculture as their livelihood. According to the United Nations Development Programme, sustainable development in agriculture means national food security, upgrading the living standard of farmers, and conservation of the natural resources. The green revolution has called for high credit requirement for the purchase of high yielding seeds, irrigation systems, fertilizers, and chemical pesticides. Along with crop yields, the cost of production has raised drastically calling huge credit requirement. This huge credit requirement was not met by the cooperatives or commercial banks for their own limitations.The introduction of Kisan Credit Card (KCC) during the budget of 1998 has played a significant role in delivering the variable credit requirements in a flexible, easy, and timely credit The plan was launched by NABARD and Reserve Bank of India. The scheme aims to reduce farmer's dependency on informal banks for credit which is often lucrative yet very expensive. The card is offered by cooperative banks, regional rural banks, and public sector banks. Although KCC was a noble idea to help needy farmers, it has become a tool that is being misused by many, including people who are financially well off, and in this paper, we will discuss the misuse of Kisan credit card. The aim of this paper is to study the impact of Kisan credit card on agriculture development and how Kisan credit card has achieved sustainable development and what are the roadblocks still prevailing in achieving sustainable development and how the use of data analytics and artificial intelligence can help banks to provide Kisan credit card to farmers after analyzing their behavior and make sure that credit is being utilized only for agriculture development that can lead to sustainable development.