Good news for farmers as they can now apply for Kisan Credit Cards more easily. They can now receive KCC digitally, thanks to Union Bank of India and Federal Bank. Pilot projects regarding the same have been started early this week.
Under the pilot projects, the lenders will eliminate the need for physical documents like land records & in-person visits to a bank branch to get Kisan Credit Cards.
It must be noted that Union Bank of India started the pilot from Harda district in Madhya Pradesh and Federal Bank began the project in Chennai.
The projects are part of the Reserve Bank of India initiative for the digitalization of rural finance where banks are work together with Reserve Bank Innovation Hub (RBIH).
Union Bank of India said it will slowly expand it to other states across the country. MD & CEO, Union Bank of India, A Manimekhalai launched the project from Harda in presence of Rakesh Ranjan, Chief Product Manager, RBIH, senior management from the bank and over 400 farmers from the district.
Union Bank of India said that the move aims at overcoming the challenges faced by growers like the in-person visit to a bank branch, submission of land ownership / other documents & high turn-around time in getting Kisan credit card.
Manimekhalai said that a farmer will be able to apply for a KCC through his mobile phone and there will be no need to visit the bank. She added that this will reduce the Turn Around Time (TAT) as the entire sanction & disbursement process will be completed in few hours.
Meanwhile, Federal Bank said it will use digital capabilities like eKYC and eSign, APIs (Application Programming Interfaces) created by the TN-eGA, and machine learning capabilities to provide KCC to farmers in a digital manner.
