Chapter on Finance

 KISAN CREDIT CARD

  • The Kisan Credit Card (KCC) Scheme was introduced in 1998-99, as a innovative credit delivery system aiming at adequate and timely credit support from the banking system to the farmers for their cultivation needs including purchase of inputs in a flexible, convenient and cost effective manner.
  • The Scheme is being implemented by all the District Central Cooperative Banks, Regional Rural Banks (RRBs) and Public Sector Commercial Banks throughout the country.
  • A new scheme for KCC has been circulated by RBI and NABARD which provides for KCC as an ATM card which can be used at ATM/Point of sale (POS) terminals.

 RURAL INFRASTRUCTURE DEVELOPMENT FUND (RIDF)

  • The Government of India established a fund to be operationalised by NABARD in the Union Budget 1995-96 called the Rural Infrastructure Development Fund (RIDF), which was set up within NABARD by way of deposits, from Scheduled Commercial Banks operating in the cou ntry from the shortfall in their agricultural / priority sector / weaker sections lending.
  • The Fund has since been continued, with its allocation being announced every year in the Union Budget.
  • Over the years, coverage under the RIDF has been broadbased, in each tranche, and at present, a wide range of 31 activities are financed under various sectors.
  • The aggregate allocations have reached 192,500 crore including the Bharat Nirman Component sanctioned to National Rural Roads Development Agency (NRRDA) under RIDF XII-XV.

 EXPORT IMPORT BANK OF INDIA (EXIM BANK)

  • Exim Bank offers a comprehensive range of lending and service/ advisory programmes, aimed at aiding the globalisation efforts of Indian companies.
  • This enables the Bank to promote inclusion of a large cross section of Indian exporters, in the opportunities being thrown up by globalization.
  • As on date, 173 LOCS to 62 countries, with credits amounting to US$ 1003 billion are guaranteed by the Government of India.
  • Networth of the Bank as on 31.3.14 stood at 558,310 crore.

 RURAL HOUSING FUND

  • Rural Housing Fund was set up in 2008-09 to enable primary lending institutions to access funds for extending housing finance to targeted groups in rural areas at competitive rates.
  • The corpus of the fund was enhanced by 6000 crore by 2013-14.
  • During the year 2013-14, for the six month period ended 31st December 2013, the Bank disbursed Rs.1595.74 crore under this scheme.