RBI (Reserve Bank of India) has decided to start pilot projects to digitize Kisan Credit Card (KCC) in Madhya Pradesh and Tamil Nadu.
Based on the experiment from the pilot program, the KCC lending will be extended to other districts within the two states and then gradually across the country, RBI announced in a press release.
The digitalization process of the KCC loan process is expected to increase efficiency, reduce the borrower’s costs, and substantially reduce the time to turn around (TAT).
Rural credit is closely linked to inclusive economic growth as it meets the needs of agriculture and associated industries, small-scale businesses, ancillary industries, and more.
As of now that getting this type of loan requires the customer to go to a branch of a bank in person, along with evidence of ownership of the land and other documents. In certain instances, the customer could have to visit the branch more than once.
KCC scheme was launched in 1998 in order to provide loans to farmers according to their assets for adoption by banks to ensure farmers can make use of them to easily purchase farm inputs like fertilisers, seeds, pesticides, and more. and cash out for their production requirements.......