Sa-Dhan Newsletter Volume 4 Issue 2

Community Based Organisations

Report of the Committee on Issues pertaining to Rural Credit

(Chairman Shri Anant Geete)

RPCD.NO.PLFS. BC./ 77 / 05.02.02 (Geete Committee)/ 2002-03

March 27, 2003

The Chairman / Managing Director

All Scheduled Commercial Banks

You are requested to kindly take appropriate action in respect

Dear Sir,

to the recommendations as indicated in the Annexure for

immediate implementation. Please advise us the action by

Report of the Committee on Issues pertaining to Rural

your bank, at an early date.

Credit (Chairman Shri Anant Geete )

Please acknowledge receipt.

Hon'ble Finance Minister had constituted a 'Committee on

issues pertaining to rural credit' under the Chairmanship of

Shri Anant Geete, the then Minister of State for Finance, to

Yours faithfully,

look into issues relating to rural agriculture credit with

Sd/-

emphasis on credit to small and marginal farmers and

working of Kisan Credit Card Scheme. The Committee in its

Report submitted to the Government of India has made certain

recommendation, inter-alia, relating to Kisan Credit Card

(Deepali Pant Joshi)

General Manager

Scheme. Certain procedural modifications relating to Kisan

Credit Card Scheme and agricultural lending, in the light of

Encl: Annexure

the Committee's recommendations are detailed in the Annexure.

Endt. RPCD.PLFS.No./ 184 / 05.02.02 (Geete Committee)/

2002-03 of date

Incidentally, the Committee has also observed, inter alia, that

Copy forwarded for information:

in spite of instructions to the contrary, some banks are

As per mailing list.

reported to be compounding interest on agricultural loans. In

this connection we invite a reference to the existing instructions

Sd/-

regarding compounding of interest on agricultural advances

and reiterate that interest on current dues i.e. crop loans and

instalments not fallen due in respect of term loans in respect

(A.K.Bhandari)

Deputy General Manager

of direct agricultural advances should not be compounded.

ANNEXURE

Sr.No.

Recommendation

Action for banks

1.

Time taken for issuance of KCC:-Bank branches should

A reference is invited to our circular letter RPCD.

indicate the information and other requirements to the

PLFS. NO. /148/ 05.05.09/2001-02 dated November

borrower in one instance. Information regarding the

15, 2001 advising banks, inter-alia, to display at

requirements to be fulfilled for becoming eligible for issue

branches the contents, operations and benefits of

of a KCC should be displayed prominently in the bank

KCC Scheme. Branches may also display information

branches. This would facilitate the farmers to fulfill the

regarding the requirements to be fulfilled for being

requirements to the satisfaction of bankers. Complete

eligible for KCC.Applications complete in all respects

applications should be promptly accepted and the KCC

may be promptly accepted and KCC be issued within

should be issued within 10/15 days.

15 days of the receipt of the application.

2.

Insistence on opening of Savings Bank Account:-Instructions

Branches may be advised that opening of S.B.A/C

to the effect that opening of SB account is not a

is not a precondition for issue of Kisan Credit Card.

precondition for issue of KCC should be reiterated.

3.

Fixation of KCC credit limit:-Credit limits are to be fixed

Credit limits may be fixed as per the norms

as per the norms stipulated for sanction of crop loans.

stipulated for sanction of crop loans. In this

connection a reference is invited to the instructions

contained at para. 6(ii) of the Model Scheme

enclosed to our circular RPCD.PLFS.BC.NO./20 /

05.05.09/ 98-99 dated August 5, 1998.

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