On Debit Balance : As advised by Head Office from time to time
On Credit Balance : Rate of interest payable will be as per Savings Bank interest rate and follow the Savings Bank Rules except opening a separate account.
Where finance is considered only for a specific crop, say sugarcane through tie-up with a sugar factory and farmer has obtained finance for other crops from other Bank / Co-operative society, such farmer can be financed for sugarcane crop provided dues certificate is submitted and there are no overdues. In such cases, other financing Bank / Co-operative society should be advised of the liabilities with us.
Wherever crop insurance is available, coverage needs to be obtained.
In case of default, the special facilities under the scheme should be immediately withdrawn and the limit should be treated as normal crop finance which would broadly mean –
Kisan Credit Card facility being in the nature of cash credit accommodation for agricultural purposes, the prudential norms as applicable to such facilities would apply to the KCC accounts.
In other words, the credit card account would be deemed to be a Non-Performing Asset (NPA) if it remains out of order for a period of two crop seasons / one crop season (as the case may be, depending on the duration of the crops) after the repayment due date.
The crop seasons after the due date should refer to only those two consecutive crop seasons in which the farmer usually undertakes crop production.
An account will be treated as out of order in the following circumstances
There are no credits in the account continuously for two crop seasons as on the date of balance sheet, or
The credits in the account are not sufficient even to cover the interest debited in respect of the account for two crop seasons, or
The outstanding remains continuously in excess of the limit for two crop seasons as on the date of balance sheet.