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10. DISBURSEMENT:
a) The issuing Branch would maintain the ledger account in respect of each Kisan Credit Card account and all the operations in the account will be through issuing Branch.
b) The card holders in general can draw cash upto Rs.25,000/= of the total sanctioned limit. However, the sanctioning authority may permit drawal in cash for higher limits depending upon the track record and association of the farmer with the Branch. However, it should be indicated in the sanction.
c) Withdrawal in the Kisan Credit Card account will be through cheque issued to the beneficiary or withdrawal slip specially printed for the purpose (green colour).
d) At the time of withdrawal and deposit, the beneficiary should present the passbook for recording the transactions.
e) Though drawals in the account are expected as per seasonality of the crops / sub-limits, yet, some flexibility may be allowed to enable the farmer to purchase inputs at convenient time when availability / prices are favourable.
f) Submission of invoices / quotations should not be insisted upon as limit / sub-limits are expected to be used on the basis of scale of finance.
g) The consumption loan is to be considered alongwith crop loan and under no circumstances only the consumption loan is to be considered to the farmers in isolation.
11. SUPERVISION AND FOLLOW-UP:
a) Pre-sanction inspections should be carried out in all cases. In cases of schematic lending, where finance is granted through tie-up recovery arrangement with a sugar factory or a processing unit, inspection at random basis in 10 percent cases should be carried out.
b) Similarly, post-disbursement inspections should also be carried out to ascertain end use of funds. In case of schematic lending also, post disbursement in atleast 10 percent accounts should be carried out.
12. REPAYMENT:
The sale proceeds should be routed through the cash credit account. Market linkages, wherever possible, should be ensured.
13. CROP INSURANCE:
a) Crops financed should be insured as required by law or as covered under various schemes.
b) Crop Loan portion of the finance should be covered under the Rashtriya Krishi Bima Yojana (RKBY) of the Agriculture Insurance Company of India Ltd. (AIC).
c) Insurance premium should be debited to the relative loan account and claims if any be credited to the beneficiary’s account promptly.
14 PERSONAL ACCIDENT INSURANCE:
a) Kisan Credit Card holders should be covered under Personal Accident Insurance scheme.
b) The Personal Accident Insurance scheme / policy covers the KCC holders upto the age of 70 years and whose names are declared by the Bank and in respect of whom the premium is paid by the Bank to the Insurance Company.
c) Risk Coverage – The benefits under the scheme are as under:
i) Death due to accident (within 12 months of the accident)
caused by outward, violent and visible means : Rs.50,000/=
ii) Permanent total disability : Rs.50,000/=
iii) Loss of two limbs or two eyes or one limb and one eye : Rs.50,000/=
iv) Loss of one limb or one eye : Rs.25,000/=
d) Annual premium of Rs.15/= per KCC holder is to be paid by the Bank to the designated Insurance Company. The Service Tax is waived for this cover.
e) Branches should send the particulars of cards issued as on last day of each month along with Credit Note towards premium by debiting Branch P & L Commission and card holder’s account in 2:1 proportion to the Zonal Office for doing the consolidation as well as submission of premium to the designated Insurance Company.
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