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Rupay-Kisan Credit Cards Transform Agricultural Landscape in Gujarat's Panchmahal and Banaskantha Districts

The ongoing pilot phase of Rupay-Kisan Credit Cards has witnessed a good increase in the flow of funds within the rural cooperative banking sector in both districts within a short span.

Shivam Dwivedi
Rupay-Kisan Credit Cards Transform Agricultural Landscape in Gujarat's Panchmahal and Banaskantha Districts (Photo Source: https://www.adccbank.in/)
Rupay-Kisan Credit Cards Transform Agricultural Landscape in Gujarat's Panchmahal and Banaskantha Districts (Photo Source: https://www.adccbank.in/)

To enhance the accessibility and capacity of Rural Co-operative Banks and provide essential liquidity to members of rural Co-operative Societies, a pioneering pilot project has been initiated in the Panchmahal and Banaskantha districts of Gujarat State.

Under the ambit of this progressive initiative, bank accounts for all members of cooperative societies are being established in the respective District Central Cooperative Banks, with the distribution of Rupay-Kisan Credit Cards (KCCs) to account holders being a key focus.

The distribution of Rupay Kisan Credit Cards under the pilot project in Panchmahal and Banaskantha districts of Gujarat by the respective District Central Cooperative Banks is as follows:

  • Panchmahal: 66,234 cards

  • Banaskantha: 28,801 cards

  • Total: 95,035 cards

The Rupay Kisan Credit Card, a vital component of the Kisan Credit Card Scheme, is specifically designed to offer credit support to farmers in the agricultural and allied sectors. The Kisan Credit Card Scheme aims to provide timely and need-based credit assistance to farmers for both cultivation and non-farming activities, ensuring a cost-effective approach.

Additionally, dairy and fishery farmers are also eligible for credit support under this scheme, as per the established guidelines. The versatile card can be utilized for ATM, POS, and E-commerce transactions. Farmers benefiting from the Rupay-Kisan Credit Card now enjoy access to credit support at a significantly low interest rate, effectively set at 4%. Moreover, the card can be employed to meet various financial and incidental consumption requirements.

Notably, dairy farmers can avail credit limits up to Rs. 1.6 lakh without the need for collateral. The increased utilization of Rupay KCC in both districts through Micro-ATMs with Bank Mitra dairy cooperatives has facilitated a surge in fund flow through cooperative banks, fostering collaboration among cooperatives.

  S. No.

Activity

June

2023

September

2023

Growth

Percentage

1.

No. of transaction

55.6 thousand

196.81 thousand

354%

2.

Amount of transaction

Rs.27.76 crore

Rs.72.04 crore

260%

 

The augmentation is evident in terms of the amount and number of transactions facilitated through Rupay Kisan Credit Cards. This transformative initiative holds the promise of significantly elevating the financial well-being of farmers and strengthening the rural cooperative banking system in Gujarat.

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