Union Bank of India on Monday launched end-to-end digitalization of Kisan Credit Card (KCC) product for farmers as part of its flagship digital transformation project ‘Sambhav’.
The product, which seeks to make the KCC lending process more efficient and farmer friendly, is aimed at overcoming the challenges faced by farmers like in-person visit to a bank branch, submission of land ownership and other documents, and high turn-around time in getting the KCC.
At the launch event, A Manimekhalai, MD & CEO, Union Bank of India, emphasised the importance of KCC digitalisation in transforming rural financing.
The benefits of KCC digitalisation, which begins with initiation of the farmer-borrower’s journey directly through mobile handset, include no need for a branch visit, no requirement for document submission, online farmland verification, and reduced transaction time, with the disbursement getting completed in a couple of hours, she said.
According to the bank’s statement, digitalization of KCC is the Bank’s Fintech initiative in collaboration with the Reserve Bank Innovation Hub (RBIH) under guidance of Reserve Bank of India (RBI).
Based on the learnings from the pilot, the bank plans to expand the digitalization of KCC lending to other districts of Madhya Pradesh and gradually across the country.
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