Agricultural Finance And The Scheme Of India Essay

â€Å"They say, an Indian agriculturist is born in debt, lives in debt and dies in debt.† This proverb still holds true in most parts of India. Yet, Indian farmers have to take loans for agriculture, medical treatments, marriage ceremonies, etc. State Bank of India is not only the storehouse of the country’s wealth but also the reservoir of resources necessary for economic development. Economic development in developing economies like India, requires the development of agriculture and small-scale industries in rural areas. In this research work, the main emphasis is given on agricultural finance and the scheme of KISAN CREDIT CARD, offered by STATE BANK OF INDIA, is critically analysed. It is referred to as â€Å"the scheme to cover term loans for agriculture and allied activities.† Kisan Credit Card (KCC) emerged as an innovative credit delivery mechanism to meet the production credit requirements of the farmers in a timely and hassle free manner. Launched in 1998-99 by then finance minister Yashwant Sinha, the KCC scheme aims at providing adequate and timely support to the farmers for their cultivation needs including purchase of inputs in a flexible, cost effective and hassle free manner. TABLE: INFORMATION OF KISAN CREDIT CARD ISSUED BY SBI FROM 2004-2010 S.N YEAR CARDS APPROVED CARDS DISTRIBUTED TOTAL CARDS REMAINING TILL 31st MARCH O/S AMOUNT AS ON 31st MARCH NO. AMOUNT (in lakhs) NO. AMOUNT (in lakhs) NO. AMOUNT (in lakhs) 1 2004-05 657 419.19 657 419.9 1963 841.81 2Show MoreRelatedDevelopment Role of Rbi1196 Words   |  5 Pageswell as extension of banking service to all, through the thrust on financial inclusion. Rural Credit Given the predominantly agrarian character of the Indian economy, the Reserve Bank’s role has been to ensure timely and adequate credit to the agricultural sector and other economic activities in rural area at affordable cost. 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