1. Identification of District for 100% Digitalisation
- In a meeting the Reserve Bank of India Governor had with the CEOs of Public Sector Banks, the Governor had suggested the SLBC Convenor Banks to identify a District to make it 100% digital within a time frame of one year, in close co-ordination and collaboration with all stake holders including State Govt:, RBI, all Banks operating in the district etc.
- Accordingly, Thrissur District is identified for 100% Digitalisation, as per the Scheme.
- Specific issues enabling or inhibiting the delivery of service, like poor internet connectivity, data packet drops etc. may be consolidated and flagged to the authorities concerned nd followed up to its logical conclusion
- Customer awareness programmes to be conducted by way of meetings/advertisement in local media/society meetings etc
- Involvement and support from the District Administration is necessary for the successful implementation of the programme.
- In addition to the above, State Bank of India has identified Kottayam District for 100% digitalisation.
2. Doubling Farmers’ Income by 2022
- The Union Government has set a target of doubling of farmers’ income by the year 2022.
- The Inter Ministerial Committee has identified seven sources of income growth namely, improvement in crop productivity; improvement in livestock productivity; resource use efficiency or savings in the cost of production; increase in the cropping intensity; diversification towards high value crops; improvement in real prices received by farmers; and shift from farm to non-farm occupations.
- Several initiatives have already been rolled out on the recommendations of DFI Committee which inter-alia include advocating progressive market reforms through the State Governments, Encouraging contract farming through the State Governments by promulgating of Model Contract Farming Act, Up-gradation of Gramin Haats to work as centers of aggregation and for direct purchase of agricultural commodities from the farmers, e-NAM to provide farmers an electronic online trading platform, Distribution, Distribution of Soil health Cards to farmers so that the use of fertilizers can be rationalized, Increase water efficiency through Pradhan Mantri Krishi Sinchayee Yojana (PMKSY)-“ Per drop more crop”, Better insurance coverage to crops for risk mitigation under Pradhan Mantri Fasal Bima Yojana (PMFBY), providing total interest subvention up to 5 per cent (inclusive of 3 per cent prompt repayment incentive) on short-term crop loans up to Rs.3 lakh, thus making loan available to farmers at a reduced rate of 4 per cent per annum and extended the facility of Kisan Credit Card (KCC) for animal husbandry and fisheries related activities as well as Interest Subvention facilities to such categories of farmers.
3. Kisan Credit Card (KCC) Saturation Campaign
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- The KCC Saturation Campaign has kick started and a State Level inaugural function was held at Kozhikode on 6th July, 2019 in the presence of Hon’ble Minister for Agriculture.
- The Programme envisages saturation of farmers under KCC Scheme in a time bound manner.
- LDMs have been advised to liaison with the Agricultural Department at the District Level, find out the number of farmers registered in the Government portal, do a gap analysis with reference to the actual number of KCCs issued in the District and reach 100% saturation in issuance of KCCs to all farmers.
- The spirit behind the above exercise is such that by reaching the target, the District should be saturated in issuance of KCCs to farmers.
- As per guidelines, on completion of saturation of all eligible farmers in the District, a saturation certificate has to be obtained from the District Collector.
- According to the Ministry of Agriculture and Farmers’ Welfare, currently there are 6.92 crore live KCCs, against 14.5 crore operational landholdings.
- The scheme comes with an ATM-enabled RuPay debit card with facilities for one-time documentation, built-in cost escalation in the limit, and any number of drawals within the limit. RuPay card comes with an inbuilt insurance coverage of Rs. 1 Lac (accidental death or permanent disability only)
- Besides ensuring saturation, banks will also be taking steps to link Aadhaar immediately as no interest subvention will be given if the Aadhaar numbers are not seeded to KCC accounts.
- Also, the government has taken several initiatives for KCC saturation which include adding farmers engaged in animal husbandry and fisheries, no processing fee of loan under KCC and raising limit of collateral free agriculture loan from Rs. 1 lakh to Rs. 1.60 lakh.
Kisan Credit Card
- The Kisan Credit Card (KCC) scheme was introduced in 1998 for providing adequate and timely credit support from the banking system under a single window with flexible and simplified procedure to the farmers for their cultivation and other needs like purchase of agriculture inputs such as seeds, fertilizers, pesticides etc. and draw cash for their production needs.
- The scheme was further extended for the investment credit requirement of farmers viz. allied and non-farm activities in the year 2004.
- KCC covers post-harvest expenses, produce marketing loan, consumption requirements of farmer household, working capital for maintenance of farm assets and activities allied to agriculture, investment credit requirement for agriculture and allied activities.
- The Kisan Credit Card Scheme is implemented by Commercial Banks, RRBs, Small Finance Banks and Cooperatives.
Interest Subvention Scheme
Normally, farm loans attract an interest rate of 9 per cent. But the government is providing 2 per cent interest subsidy to ensure farmers get short-term farm loan of up to Rs 3 lakh at an effective rate of 7 per cent per annum. An additional incentive of 3 per cent is being given to farmers for prompt repayment of loans within due date, making the effective interest rate 4%.
4. PSB Loans in 59 minutes
The initiative reimagines and simplifies the overall process of fund raising and has been designed to ease access of credit to Individuals and MSMEs. This is a unique platform that ensures seamless In-principle loan approval.
The initiative aims at automation and digitization of various processes of Business Loan (Term Loan, Working Capital Loan and Mudra Loan) and Retail Loans (Personal Loan, Home Loan and Auto Loan) in such a way that a borrower gets an In-principle approval letter in less than 59 minutes. The borrower has been given the flexibility to choose lender.
Business Loan In-principle approvals, with /without collateral, are currently provided for value from INR 1 Lac to INR 5 Crore. The Rate of Interest starts from 8.5% onwards. The Platform is integrated with CGTMSE to check eligibility of borrowers.Mudra Loan In-principle approvals are currently provided for value from INR 10,000 to INR 10 Lacs.
Personal Loan In-principle approvals are currently provided for value up to INR 20 Lacs, Home Loan In-principle approvals are currently provided for value up to INR 10 Crores and Auto Loan In-principle approvals are currently provided for value up to INR 1 Crore.
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