W Bengal plans kisan cards to widen rural reach

Font Size

Print

Feedback

Email

Discuss

Related Articles

India deposits rice, wheat seeds in Svalbard Vault

Kolkata, Oct 23 : To bring in more farmers under the credit net of the mainstream banking system, the the West Bengal agriculture department is planning to push banks to issue 15 lakh kisan credit cards (KCCs) by 2012. The department has taken up the issue at the state-level bankers’ committee (SLBC) meeting. “By 2012, we should have at least 30 lakh Kisan credit cards from the present 15 lakh,” said Sanjeev Chopra, agriculture secretary, West Bengal. Of an approximate 68 lakh people having operational holdings, 70% are small and marginal farmers.

“The ratio of corpus to bank finance is 1.13 only, which indicates under-financing by banks,” said a top official in the state finance department. The requirement of farmer’s credit in West Bengal is about Rs 15,000 crore according to estimates by the National Bank for Agriculture and Rural Development (Nabard). While the state government eyed a disbursal of Rs 5,000 crore of rural credit this fiscal, the formal banking structure in the state could disburse only a little more than Rs 3,000 crore.

“We are talking to several banks including cooperative banks to forge a way out,” said Sanjeev Chopra. “Increasing the number of kisan credit cards will bring more people under the mainstream credit net,” he said. “The banks have infrastructure constraints and we are ready to lend our manpower to the banks for KCCs,” he said. The department is even ready to offer special incentives to the banks against KCC accounts.