Kisan Credit Card (KCC) Scheme-Constraints, Impacts, and Policy Interventions: A Review

Abstract

Purpose: The Kisan Credit Card (KCC) scheme serves as a crucial financial instrument for ensuring timely and affordable credit access to farmers, thereby reducing dependence on informal lending sources. However, its effectiveness is often hindered by institutional, financial, and socio-economic barriers, including complex application procedures, limited rural banking infrastructure, high loan default risks, and low financial literacy.

Research Method: The study based on secondary data, information collected various research papers, review articles, book chapter and website.

Finding: This review examines key policy interventions and best practices aimed at improving KCC adoption, accessibility, and efficiency. Recent digital transformations, such as online application portals, Aadhaar-linked verification, mobile banking, and AI-driven credit monitoring, have streamlined loan processing and enhanced financial security. Expanding KCC eligibility to tenant farmers, sharecroppers, and women farmers has further strengthened rural credit inclusivity. Additionally, financial literacy programs, community-led awareness initiatives, and Financial Literacy Centres (FLCs) have played a pivotal role in educating farmers on digital banking and credit management. While these advancements offer promising solutions, sustained efforts in technological innovation, policy reform, and financial education are essential for maximizing the KCC scheme’s impact, ensuring long-term financial empowerment and resilience among farmers in India’s evolving agricultural landscape.