J&K surpasses 10.8 lakh KCC mark, but credit size still low
Srinagar, June 15: Jammu and Kashmir has achieved a significant milestone in credit inclusion, with over 10.8 lakh active Kisan Credit Cards (KCCs) issued across the Union Territory.
This data, as per the minutes of the 15th meeting of the Union Territory Level Bankers’ Committee (UTLBC), reflects combined figures from both the crop and animal husbandry and fisheries (AH&F) sectors.
As of December 31, 2024, the total number of active KCCs under the crop segment stood at 8,49,193 with a sanctioned credit of Rs 7,783.74 crore and an outstanding balance of Rs 5,795.59 crore. In the AH&F category, 2,32,897 active KCCs were recorded, with Rs 1,942.29 crore sanctioned and Rs 1,546.73 crore outstanding. The total number of active KCCs in J&K, combining both segments, thus reached 10,82,090 by the end of the calendar year.
The minutes of the UTLBC meeting also noted that a total of 61,316 fresh KCCs were issued during the first nine months of FY 2024–25, with 23,480 issued for crop-related credit and 37,836 for animal husbandry and allied activities. This marks a substantial increase from 19,305 and 20,381, respectively, during the corresponding period of the previous year, indicating a growing reliance on formal credit systems among the farming population.
The General Manager of UTLBC informed the House that outreach under the KCC scheme is being intensified through initiatives like the Kissan Sampark Abhiyan, with special focus on including left-out PM-Kissan beneficiaries. He reported that 6.05 lakh smart cards have been issued to KCC holders, although more work remains to ensure universal smart card coverage, as per the minutes of the meeting.
A detailed credit distribution analysis presented at the meeting showed that 22 percent of active KCC accounts have sanctioned limits below Rs 10,000, while only a marginal share—less than 0.5 percent—have credit limits exceeding Rs 3 lakh. The bulk of accounts fall between Rs 10,000 and Rs 1 lakh, highlighting the need for upward revision of credit limits.
The Chief Secretary of Jammu and Kashmir, while reviewing the figures, pointed out that despite the increase in coverage, overall credit growth to the agriculture sector remains sluggish. He urged banks to strengthen lending under the KCC framework by offering term loans, distributing smart cards to all beneficiaries, and increasing average ticket size. He also called for wider awareness of the Government’s 3 percent Prompt Repayment Incentive (PRI) that rewards timely repayment of KCC loans.
Concurring with the observation, the Chief General Manager of NABARD emphasised the need for a realistic estimation of credit requirements through rightsizing of crop loans. He said that the final Scale of Finance (SOF) for FY 2025–26 has been prepared with this objective and will be circulated to all stakeholders within a fortnight.
Another major update shared during the meeting was the Reserve Bank of India’s directive to raise the collateral-free limit on agricultural loans from Rs 1.60 lakh to Rs 2.00 lakh per borrower. The committee underlined the importance of disseminating this information to farmers through targeted outreach campaigns by both banks and the agriculture department.
As per the resolutions adopted in the 15th UTBLC meeting, banks have been tasked with saturating all eligible farmers under the KCC scheme, improving the average credit limits, ensuring time-bound issuance of smart cards, and initiating awareness drives about collateral-free loan enhancements and interest subvention benefits.
