Understanding Progress of KCC: A State-Wise Analysis of the Cooperative Banks

Abstract

Despite the rise of the service industry, agriculture and it's allied activities still remain the backbone of the Indian Economy. But the idea of establishing good financing is often road blocked by challenges of illiteracy and lack of a credit delivery system in the rural areas where most of the agricultural activities take place. Kisan Credit Card (KCC) has been the initiative to remedy that. This simple card-cum-passbook has helped connect the rural farmers to banking institutions and as a result have channelized much needed funds. Based on various factors indigenous to the different states of India, the KCC has seen varying degrees of success. When a study was conducted to analyze this success it was found that the Southern and Eastern regions have seen a rise in the number of KCC operators whereas all the other regions have experienced a decline over the period of 2018-19. Furthermore the amount outstanding has fallen in two regions specifically the western and the northern part of India.