Pursuant to the announcement in the interim budget 2019, the Reserve Bank of India carried out circular asking banks to extend the facilities of Kisan Credit Card (KCC) to Animal Husbandry farmers and Fisheries to help them meet their working capital requirements. According to RBI circular FIDD.CO.FSD.BC.12/05.05.010/2018-19 dated Feb 4, 2019, the new KCC facility will include the short term credit requirements of the rearing of animals, birds, fish, shrimp, other aquatic organisms, the capture of fish.
Eligible borrowers:
- Fishers, Fish Farmers (individual & groups/ partners/ share croppers/ tenant farmers), Self Help Groups, Joint Liability Groups and women groups who are involved in Inland Fisheries and Aquaculture: The beneficiaries must own or lease any of the fisheries-related activities such as pond, tank, open water bodies, raceway, hatchery, rearing unit, possess the necessary license for fish farming and fishing-related activities, and any other State-specific fisheries and allied activities.
- Marine Fisheries: Beneficiaries listed above who own or lease registered fishing vessel/boat, possess necessary fishing license/permission for fishing in estuary and sea, fish farming/mariculture activities in estuaries and open sea, and any other State-specific fisheries and allied activities.
- Poultry and small ruminant: Farmers, poultry farmers either an individual or joint borrower, Joint Liability Groups or Self Help Groups including tenant farmers of sheep/goats/pigs/poultry/birds/rabbit and having owned/rented/leased sheds.
- Dairy: Farmers and Dairy farmers either individual or joint borrower, Joint Liability Groups or Self Help Groups including tenant farmers having owned /rented/leased sheds.
The scale of finance:
The scale of Finance will be fixed by the District Level technical committee (DLTC) which will work-out the working capital limit on the basis of per acre/per unit/per animal/per bird etc.
The assessment of scale finance for fisheries includes recurring cost towards seed, feed, organic and inorganic fertilizers, 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. For Animal Husbandry, the scale of finance will be worked out on recurring costs towards feeding, veterinary aid, labour, water, and electricity supply.
The maximum period for assessment of working capital requirement will be for the completion of one production cycle based on cash flow statement.
Other guidelines:
Prudential norms: The extant prudential norms on income recognition, asset classification, and provisioning on allied activities will apply.
Rate of Interest: The rate of interest will be as stipulated in DBR’s Master Direction – Reserve Bank of India (Interest Rate on Advances) Directions 2016.
All other guidelines laid down in Kisan Credit Card Scheme for short term crop loans will be applicable mutatis mutandis.
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