The number of Kisan Credit Card (KCC) accounts in government banks declined significantly by 1.8 per cent year-on-year to 22.5 million in fiscal 2025. Apart from this the outstanding loan amount grew by a marginal 2.2 per cent growth to ₹41,300 crore during the period. A senior government official released the report on Business Standard, however requesting to keep the identity anonymous. This sharp decline in active KCC accounts reflects various structural shifts in rural lending, reported the official.
Data from RBI and Nabard
The agriculture ministry stated that NPAs under KCCs accounts for the commercial banks have declined from 15.1% in FY22 to 14.16% by December 31, 2024. It is worth to note that the agriculture ministry presented the figures in reference to RBI and Nabard. Correspondingly, NPAs in the KCC accounts of regional rural banks and cooperative banks have declined from 9.5% and 6.9% in FY22 to 7.1% and 6.5% respectively by FY24, it stated.
Kisan Credit Card facility help farmers get timely and affordable credit for purchasing agricultural inputs such as seeds, fertilizers, and pesticides, as well as for meeting cash requirements related to crop production and allied activities.