Banks in Karnataka have instructed field-level functionaries to complete the exercise of reaching out to all farmers in the State with credit by the month-end. The Ministry of Finance recently directed all State-level bankers' committee (SLBC) convenors to prepare a rapid action plan for covering all farmers across States to provide credit-linkage to all farmers by September 30.

“The Ministry of Finance has given instructions to issue credit to farmers — through issue of kisan credit cards (KCCs) and also give overdraft facility without much formalities,” a senior SLBC – Karnataka official told Business Line . Banks can issue overdraft facility of Rs 2,000.

Since banks have been covering farmers through various schemes, most farmers are already under the banking fold, pointed out Ms Shubhalakshmi Panse, Executive Director, Vijaya Bank. SLBCs would provide details of areas where farmers do not have KCCs or credit facility yet, and “banks would issue the cards,” she added.

Mr Ramnath Pradeep, Chairman and Managing Director, Corporation Bank, said, “We have already issued instructions to the field-level functionaries to complete the exercise as we are already covering villages for financial inclusion.” Corporation Bank has also instructed zonal officers to interact with branches and “we have also formed a team at the head office to interact with zonal offices through video-conferencing,” he added. This, he explained, would help address issues on an immediate basis.

Karnataka Vikas Grameena Bank, a Dharwad-based regional rural bank (RRB), sponsored by Syndicate Bank, has constituted a small group of officers/managers at every regional office to meet every alternate day to review the progress on credit flow for crop production.

Mr C. Sambasiva Reddy, Chairman, KVG Bank, said that a detailed survey has been initiated in all the nine districts of north Karnataka to find out the number of farmers who are financially excluded. “The bank is also taking the assistance of SHGs, farmers' clubs, NGOs and the State agricultural department to complete the task,” he said. KVG Bank has, so far, issued 2.46 lakh KCCs and has disbursed loans of Rs 1,451 crore so far. Since June 2011, the bank has issued 8,000 fresh cards.

Pragathi Gramin Bank, a Bellary-based RRB sponsored by Canara Bank, plans to launch its rapid action plan from September 15. The bank has 372 branches spread across eight districts — Bellary, Chitradurga, Chikkaballapura, Davanagere, Kolar, Koppal, Raichur and Shimoga. The bank has so far issued 1.2 lakh KCC and disbursed about Rs 700 crore.

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