Instant Kisan
credit card

Mission

To enable frictionless agri-credit for 120 million farmers across India.

Paperless Process

Reduced TAT

Reduced Costs

 Technology (DLT) allows stakeholders to share accurate and reliable information digitally. Smart contracts supported by DLT allow for automated execution of conditions once pre-set criteria are met, reducing manual intervention and paperwork. However, the widespread adoption of DLT has been limited.

RBIH consulted with leading public and private sector banks to identify key issues with adoption. Major concerns that were identified were vendor lock-in with a single DLT fabric and lack of live use cases at scale. To address these concerns, RBIH conceptualized an interoperable DLT platform for the financial ecosystem.

Key Observations From The POC

Enhanced Performance & Scalability

DLT platforms performed faster as compared to the existing bank portals

Better Security & Access Control

DLT platform had secure access and only authorized users can be onboarded

Increased Robustness & Maturity

Every fabric partner was able to inject multiple transactions into the fabric

Proposed Process for New

KCC Applicants

A farmer applies for KCC through online mode/ BC mode/ visits a bank branch by providing KYC documents and land record number.
The verification of the applicant is done using online e-KYC/ through a micro ATM or bank branch.
The API integration between the Bank and Land Revenue records of the State Government is done.
The Bank verifies the land records from the State Govt database.

a. Loan eligibility is calculated
b. The automated scale of finance
c. Loan contract signed using e-sign
d. Loan disbursement to the
bank account

The digitalization of KCC lending is having a transformative impact on the rural credit delivery system. By making the process faster and more efficient, it increases access to credit for unserved rural communities. The pilot was launched in September 2022 in selected districts in Madhya Pradesh and Tamil Nadu, with Union Bank of India and Federal Bank participating, respectively. Based on the insights gained from the pilot, it is intended to extend the digitization of KCC lending to additional districts in these two states, and eventually across all of India.

AgriFin Program PDF

Instant Kisan Credit Card is helping to widen and deepen agri-credit for small and marginal farmers. The process entails automation of various processes within banks and integration of their systems with the service providers. The pdf linked below highlights the issues with the current KCC process that we are trying to solve, and the impacts of out proposed digitalization process.

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