The Government of India, in the year 2018-19, extended KCC facility to fisheries and animal husbandry farmers to help them to meet their working capital requirements. Detailed guidelines were issued by the Reserve Bank of India (RBI) on 4 February 2019 covering eligibility criteria, funding scope, etc. Banking authorities have been instructed to issue his KCC within 14 days of receiving a farmer's completed application.
Purpose
KCC facilities meet short-term credit requirements for raising fish, shrimp, and other aquatic life.
Eligibility
The criteria for KCC livestock and fisheries eligible beneficiaries are:
Fishermen, fish farmers (individual and groups/partners/farmers/farmers), self-help groups, co-responsibility groups, women's groups. Beneficiaries own or lease fishing-related activities such as ponds, tanks, open water, carrier trucks, hatcheries, breeding units, etc., and hold necessary licenses for fish farming and fishing-related activities, and all other state-specific fishing must have cooperation activity.
Beneficiaries listed in (A) above who own or lease registered fishing vessels/boats are eligible for estuary and offshore fishing, estuary and offshore aquaculture/marine farming activities, and all other state-specific holds the necessary fishing licenses/permits for fishing and related activities.
Funding levels are determined by the District Technical Committee (DLTC) based on local costs calculated on per acre/per unit/per animal basis.
The components of working capital in fisheries include seeds, feed, organic and inorganic fertilizers, lime/other soil conditioners, harvesting and marketing costs, fuel/electricity costs, labor costs, rental costs (water may include recurring expenses such as leased area).
For captive fisheries, working capital may include fuel, ice and labor costs. Mooring and landing costs may also be eligible for financing.
Government fisheries and livestock experts. May be appointed as a member of the DLTC to provide technical input for evaluating caching requirements.
Advanced livestock/fisheries entrepreneurs are also included in the DLTC and can provide field level input while assessing working capital requirements.
For the prevailing KCC holders the benefits of notice subvention and early repayment encouragement will be acceptable up to the credit limit of Rs. 3 lakhs including fisheries activities.
While the new card holders will have credit limit of Rs. 2 lakhs to meet their working capital necessities for fisheries activities.
Interest subsidy will be accessible for fisheries farmers as per the prevailing guidelines, i.e. @2% per annum at the time of disbursal of loan and extra @3% per annum in case of rapid repayment as additional incentive.
The short-term component of the KCC Limit features a revolving cash credit facility. There is no limit to the number of debits and credits. Banking authorities have been instructed to issue a KCC to him within 14 days of receiving the completed application form from the fish farmer.
Dr. Mahendra Kumar Yadav
Assistant Professor,
School of Agriculture
SAGE University, Bhopal (M.P.)
