Finance Ministry has decided to look into detail the matter of issuance of Kisan Credit Cards (KCCs) by banks. It is sensed that the number of cards being issued as read in bank books is not the same as the actual number of farm lending accounts maintained by banks.
Banks are continuously under pressure of meeting agricultural lending targets set by the government. It is assumed that they might have been issuing multiple cards to the same farmer so as to increase the number of cards issued in their books.
"We have asked banks to report only the active KCCs. It has been found that there is a lot of duplication," a finance ministry official said.
"Generally farmers get KCCs through their co-operative banks but for bigger loans they approach a regional rural bank or commercial bank, where another account is opened," said an official with National Bank for Agriculture and Rural Development (Nabard). "Since there is no mechanism to link the accounts with the existing KCC number, another card is issued," he added.
According to an official of State Bank of India, a farmer cannot benefit even if he holds more than one card. This is because he can take loan from one bank at a time and in case he needs loan from another bank he has to get a no dues certificate from the parent bank where he held his first card.