Eligibility criteria for Kisan Credit Card Scheme for farmers engaged in fisheries/ aquaculture, amended

RBI on Wednesday (18.05.2022) notified all the banks that the RBI circular dated February 04, 2019, related to Kisan Credit Card (KCC) for  ‘Working Capital for Animal Husbandry and Fisheries’  stand modified. Modification of the scheme was necessitated by the Central Bank in India (RBI), as they received information that the licensing/authorisation related requirements pertaining to fishing/aquaculture in inland water bodies vary across states. “Accordingly, the eligibility criteria for inland fisheries and aquaculture under the above circular stand modified”, RBI said.

The modified instructions for KCC are as under:

“The beneficiaries must own or lease any fisheries-related assets such as ponds, tanks, open water bodies, raceways, hatcheries, rearing units, boats, nets, and such other fishing gear as the case may be and possess necessary authorisation/certification as may be applicable in respective states for fish farming and fishing-related activities and for any other state-specific fisheries and allied activities”.

In the Budget 2018-19 the Union Government had announced their decision to extend the facilities of the Kisan Credit Card (KCC) to Animal Husbandry farmers and Fisheries (AH & F) to help them meet their working capital requirements.  In pursuance of the said budget announcement, the Reserve Bank of India carried out circular asking banks to extend the facilities of the Kisan Credit Card (KCC) to Animal Husbandry farmers and Fisheries to help them meet their working capital requirements.  The new KCC facility will include the short-term credit requirements for the rearing of animals, birds, fish, shrimp, and other aquatic organisms, and the capture of fish.

Working Capital: The working capital components in Animal Husbandry, under the scale of finance, may include recurring costs towards feeding, veterinary aid, labour, water, and electricity supply. The maximum period for assessment of working capital requirement may be based on the cash flow statement or completion of one production cycle.

Drawing power: The drawing power will be worked on the basis of the latest valuation of stocks, receivables, and/or cash flows as per terms of sanction.

Repayment: The loan will be in the nature of a revolving cash credit limit. Repayment will be fixed as per the cash flow/income generation pattern of the activity undertaken by the borrower.

The scale of finance: The scale of finance will be fixed by the District Level Technical Committee (DLTC) based on local costs worked out on the basis of per acre/per unit/per animal/per bird etc. The working capital components in fisheries, under the scale of finance, may include recurring costs towards seed, feed, organic and inorganic fertilisers, lime/other soil conditioners, harvesting and marketing charges, fuel/electricity charges, labour, lease rent (if leased water area), etc. For capture fisheries, working capital may include the cost of fuel, ice, labouring charges, mooring/landing charges, etc. may form part of the scale of finance.

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