January 20, 2021 | Investopaper
Agricultural Development Bank has been distributing ‘Kisan Credit Card and App’ to farmers since Wednesday. This is also a provision declared in the monetary policy. “Farmers’ credit cards will be provided through the Agriculture Development Bank to provide financial resources as well as agricultural information to farmers,” the monetary policy states.
Credit card will be operated as per the instructions of NRB. But even if it is called a credit card, the farmer will have to keep the prescribed amount in the bank account at the beginning. The bank claims that it is issuing ‘Kisan Credit Card and App’ with the objective of connecting farmers and agricultural produce business in the banking system. Through Kisan Credit Card, farmers will get all kinds of payment facility through electronic medium (QR code).
Similarly, the bank is preparing to provide information about weather, fertilizers, seeds, agricultural tools, markets, etc. related to agriculture through Kisan App.
Commercial banks are required to invest at least 15 percent of their total investment in agriculture by Ashad 2080. Out of which, minimum 11 percent investment will have to be made in agriculture till 2078 BS and 13 percent till 2079 BS. However, there have been complaints that the loans have not been distributed evenly and have not reached the target group. That is why the leadership of agricultural credit has been given to the Agricultural Development Bank.
NRB has set a time limit for the flow of agricultural credit through the quarterly review of monetary policy. There is a provision for NRB to take action if the loan does not flow in the specified area as per the instructions.