For farmers to get a Kisan Credit Card or KCC easily, Union Bank and Federal Bank have started pilot projects, on Monday, said, lenders. These initial stage small-scale projects will make sure that farmers do not need a bank visit or any physical document shows.
Farmers To getting Kisan Credit Card Digitally Through These Banks
The public sector Union Bank of India has commenced the project in the Harda district of Madhya Pradesh. While as a private sector lender Federal Bank started its project from one of the locations in Chennai. The projects are being governed under the rural finance digitization initiative where banks are coordinating with the Reserve Bank Innovation Hub (RBIH).
Pilot Project of Union Bank of India
According to Union Bank of India, the lender will expand its pilot project on a massive scale to other states also. The project was launched from Harda by A Manimekhalai, MD & CEO, Union Bank of India while “Rakesh Ranjan, Chief Product Manager, RBIH, senior management from the bank and more than 400 farmers from the district” were present.
“It is aimed at overcoming the challenges faced by farmers like an in-person visit to a bank branch, submission of land ownership and other documents, and high turn-around time in getting the KCC. Based on the learnings from the pilot, it is planned to expand the digitalization of KCC lending to other districts of Madhya Pradesh and gradually across the country”, a statement from Union Bank of India.
The bank asserted that this end-to-end digitalization of Kisan Credit Card (KCC) is being completed under a major transformation process named ‘Sambhav’. Manimekhalai Added, “digitalization of KCC will help transform rural financing. One can apply for a KCC with the help of a mobile handset only and there is no need to visit a branch. She added that “the process needs no document submission as farmland verification will be done online.”
“The Turn Around Time (TAT) reduces as the entire sanction and disbursement process gets completed in a couple of hours,” she said.
“Will use digital capabilities such as eKYC and eSign, APIs (Application Programming Interfaces) developed by the TN-eGA and machine learning capabilities to offer KCC in a digital manner,” said Federal Bank.
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Rajesh Bansal, CEO, of RBIH said, “In India, rural credit is closely linked to economic growth. In this context, we at RBIH have developed a pilot project for the end-to-end digitalisation of the Kisan Credit Card (KCC) lending, in association with RBI.”
