RBI/2018-19/112
FIDD.CO.FSD.BC.12/05.05.010/2018-19
February
04, 2019
The Chairman/Managing
Director/Chief Executive Officer
All Scheduled Commercial Banks (including Small Finance Banks and excluding
RRBs)
Madam/Sir,
Kisan Credit Card (KCC) Scheme:
Working Capital for Animal Husbandry and Fisheries
Please refer to our Master
Circular - Kisan Credit Card (KCC) Scheme issued vide FIDD.CO.FSD.BC.No.6/05.05.010/2018-19 dated July 4, 2018.
It has been decided to extend KCC facility to Animal Husbandry farmers and
Fisheries for their working capital requirements. The guidelines are given
in the Annex.
2. Banks are advised to
implement the Scheme as per the guidelines.
Yours faithfully,
(Sonali Sen Gupta)
Chief General Manager
Encl: As above
Annex
1. Introduction
In the Budget 2018-19 the Union
Government had announced their decision to extend the facilities of 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 matter has been examined, and in consultation with
all stakeholders, it has been decided to extend the KCC facility for
working capital requirement for activities related to Animal Husbandry and
Fisheries.
2. Purpose:
The KCC facility will meet the
short term credit requirements of rearing of animals, birds, fish, shrimp,
other aquatic organisms, capture of fish.
3. Eligibility:
The criteria for eligible
beneficiaries under KCC for Animal Husbandry and Fisheries will be as
under:
3.1 Fishery
3.1.1 Inland Fisheries and
Aquaculture
3.1.1.1 Fishers, Fish Farmers
(individual & groups/ partners/ share croppers/ tenant farmers), Self
Help Groups, Joint Liability Groups and women groups.
3.1.1.2 The beneficiaries must
own or lease any of the fisheries related activities such as pond, tank,
open water bodies, raceway, hatchery, rearing unit, possess necessary
license for fish farming and fishing related activities, and any other
State specific fisheries and allied activities.
3.1.2 Marine Fisheries
3.1.2.1 Beneficiaries listed at
2.1.1.1 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.
3.2 Poultry and small ruminant
3.2.1 Farmers, poultry farmers
either individual or joint borrower, Joint Liability Groups or Self Help
Groups including tenant farmer of sheep/goats/pigs/poultry/birds/rabbit and
having owned/rented/leased sheds.
3.3 Dairy
3.3.1 Farmers and Dairy farmers
either individual or joint borrower, Joint Liability Groups or Self Help
Groups including tenant farmers having owned /rented/leased sheds.
4. Scale of Finance
4.1 The scale of finance will be
fixed by the District Level Technical Committee (DLTC) based on local cost
worked out on the basis of per acre/per unit/per animal/per bird etc.
4.2 The working capital
components in fisheries, under the scale of finance, may include recurring
cost 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.
4.3 The working capital
components in Animal Husbandry, under the scale of finance, may include
recurring cost towards feeding, veterinary aid, labour, water and
electricity supply.
4.4 The maximum period for
assessment of working capital requirement may be based on the cash flow
statement or completion of one production cycle.
4.5 Fisheries and Animal
Husbandry experts of the Govt. may be made members of the DLTC for giving
technical inputs for assessing the cash credit requirement.
4.6 Progressive entrepreneurs of
livestock/fisheries sector may also be included in the DLTC for providing
field level inputs while assessing the working capital requirements.
5. General Guidelines
5.1 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.
5.2 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.
5.3 Monitoring of end
use: The account/smart card for the loan issued under the scheme
is to be maintained/issued separately from the existing KCC loan to monitor
the utilization limit. The monitoring of end use of funds will be in line
with other loans (KCC on crop loans included) viz., field visits to the
site of unit/project to be carried out by the branch officials for checking
the progress of the unit. Banks will periodically review the facility and
continue/withdraw/scale down the facility based on the performance of the
borrower.
5.4 Prudential norms: The
extant prudential norms on income recognition, asset classification and
provisioning1 on allied activities will
apply.
5.5 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.
5.6 All other guidelines laid
down in Kisan Credit Card Scheme for short term crop loans will be
applicable mutatis mutandis.
1 DBR’s Master
Circular on Income Recognition, Asset Classification and Provisioning Norms
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