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Inclusion of Credit under KCC under direct financing for Agriculture

RBI/2011-12/219
RPCD.CO.Plan.BC. 22 /04.09.01/2011-12

October 13, 2011

The Chairman/Managing Director/
Chief Executive Officer
[All Scheduled Commercial Banks (excluding Regional Rural Banks)]

Dear Sir/ Madam,

Inclusion of Credit under KCC under direct financing for Agriculture

Please refer to para 1.1.3 of our circular RPCD.CO.Plan.BC.No.10/04.09.01/2011-12 dated July 1, 2011 on lending to priority sector in terms of which working capital and term loans for financing production and investment requirements for agriculture and allied activities are treated as direct finance to agriculture under priority sector.

2. As credit under the Kisan Credit Card is primarily for agricultural purposes, it is clarified that such credit would be treated as direct finance for agriculture under priority sector lending.

Yours faithfully,

(Deepali Pant Joshi )
Chief General Manager-in-Charge

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