Why in News?

• Recently, Finance Ministry has expressed its displeasure over the tardy progress made by banks in seeding all PM-KISAN beneficiaries with Kisan Credit Card (KCC).

Background info:

• To enable universal access to Concessional Institutional credit, Government of India has initiated a drive in Mission Mode for saturating all PM-KISAN beneficiaries with Kisan Credit Card (KCC).
• This will help all such farmers to get short term loan for crop & animal/fish rearing at a maximum interest of 4% on timely repayment.
• However, there has not been much progress in this seeding process. Accordingly, the Finance Ministry has expressed displeasure over the tardy progress made by banks, and asked them to double their efforts.

 About PM-KISAN Scheme:

• With a view to augment the income of the Small and Marginal Farmers (SMFs), the government has launched the new Central Sector Scheme, namely, “Pradhan Mantri Kisan Samman Nidhi (PM-KISAN)”.
• Under the scheme, ₹6,000 per year will be provided to farmers holding cultivable land of up to two hectares.The PM-KISAN scheme aims to supplement the financial needs of the SMFs in procuring various inputs to ensure proper crop health and appropriate yields, commensurate with the anticipated farm income at the end of each crop cycle.
• This would also protect them from falling in the clutches of moneylenders for meeting such expenses and ensure their continuance in the farming activities.

 About KISAN Credit Card Scheme:

• The Kisan Credit Card (KCC) scheme was introduced in 1998 for issue of Kisan Credit Cards to farmers so that farmers may use them to readily purchase agriculture inputs such as seeds, fertilizers, pesticides etc. and draw cash for their production needs.
• The Kisan Credit Card Scheme is to be implemented by Commercial Banks, RRBs, Small Finance Banks and Cooperatives.
• The farmers eligible under the KCC scheme include small farmers, marginal farmers, share croppers, oral lessee and tenant farmers. The Self Help Groups (SHGs) or Joint Liability Groups (JLGs) are also eligible for availing benefits under the scheme.