Rupay Kisan Credit Card : In an effort to enhance the outreach and capabilities of Rural Co-operative Banks and provide essential liquidity to members of rural Co-operative Societies, a pioneering pilot project has been initiated in the Panchmahal and Banaskantha districts of Gujarat State. This initiative aims to strengthen the financial landscape in rural areas and empower farmers through accessible credit facilities.
As part of this innovative project, bank accounts for all members of cooperative societies are being established in the respective District Central Cooperative Banks. Furthermore, Rupay Kisan Credit Cards (KCCs) are being distributed to account holders, marking a significant step towards financial inclusion and support for the agricultural sector.
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The distribution details of Rupay Kisan Credit Cards under the pilot project in Panchmahal and Banaskantha districts are as follows:
- Panchmahal: 66,234 cards
- Banaskantha: 28,801 cards
- Total: 95,035 cards
The RuPay Kisan Credit Card, a vital component of the Kisan Credit Card Scheme, is provided to farmers holding accounts under the scheme. This initiative aims to offer timely and need-based credit support to farmers for both farming and non-farming activities in a cost-effective manner. Additionally, the scheme extends credit support to dairy and fishery farmers in accordance with established guidelines. The versatility of the card allows it to be used for ATM, POS, and E-commerce transactions.
With the introduction of the Rupay Kisan Credit Card, farmers now benefit from credit support at a significantly reduced interest rate, effectively standing at 4%. Moreover, the card serves as a tool for farmers to meet various financial and consumption requirements. Notably, dairy farmers enjoy the added advantage of not requiring collateral for credit limits up to Rs. 1.6 lakh.
The increased utilization of Rupay KCC in both districts, facilitated through Micro-ATMs with Bank Mitra dairy cooperatives, has fostered a surge in funds flowing through cooperative banks. This collaboration among cooperatives is instrumental in strengthening the financial fabric of rural communities.
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The impact of the pilot phase is evident in the substantial growth in the number and amount of transactions through Rupay Kisan Credit Cards:
Number of transactions:
- June 2023: 55.6 thousand
- September 2023: 196.81 thousand
- Growth Percentage: 354%
Amount of transactions:
- June 2023: Rs. 27.76 crore
- September 2023: Rs. 72.04 crore
- Growth Percentage: 260%
This initiative, spearheaded by the Minister of Cooperation, Shri Amit Shah, signifies a commendable stride towards financial empowerment and inclusion in rural Gujarat. The success of this pilot project showcases the potential for transforming rural economies through innovative financial solutions and cooperative collaboration.