Kisan Credit Card Scheme in Fisheries Sector

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:

A. Inland Fisheries and Aquaculture

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.

B. Marine Fisheries:-

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.

Scale of Finance

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.

Credit Limit for interest subvention and prompt repayment incentive:

 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.

Disbursement:

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.)