Union Bank of India launches digitalization of Kisan Credit Card: As part of the flagship Digital Transformation initiative “Sambhav,” Union Bank of India announced an industry-first, end-to-end digitalization of the Kisan Credit Card product with a farmer-focused objective. By digitalizing the KCC financing process, the company hopes to increase its effectiveness and farmer friendliness.
Union Bank of India launches digitalization of Kisan Credit Card
Under the direction of the Reserve Bank of India (RBI), Union Bank of India and Reserve Bank Innovation Hub (RBIH) have launched a Fintech initiative called “Digitalization of Kisan Credit Card” (KCC) with the goal of addressing issues that farmers face, such as the need to visit a bank branch in person, provide proof of land ownership and other documents, and wait a long time to receive the KCC.
What are the advantages of KCC’s digitalization?
- The ability to start a journey simply from a mobile device. Going to a branch won’t be necessary anymore.
- There is no need to submit any documents. Verification of farmland will be done online.
- As the full sanction & distribution procedure is finished in a few hours, the Turn Around Time (TAT) decreases.
- KCC’s digitalization will bring a revolution in rural financing.
What is Kisan Credit Card?
- The Kisan Credit Card (KCC) scheme was introduced in 1998 and calls for banks to issue Kisan Credit Cards to farmers based on their holdings. Farmers can then use these cards to easily buy agricultural inputs like seeds, fertilizer, pesticides, and other things, as well as to withdraw cash for their production needs.
- It is implemented by Small Finance Banks, Commercial Banks, RRBs, and Cooperatives.
- The Kisan Credit Card initiative intends to provide farmers with flexible and streamlined credit support from the banking system under a single window for their farming and other requirements as listed below:
- Cost after harvest
- To fulfill the short-term financial needs for crop cultivation
- Loan for product marketing
- Requirement for investment loan in agriculture and related sectors
- Consumption needs for a household of farmers
- Working capital for agrarian-related activities and farm asset maintenance
|Current Affairs April 2022|