Economics • Banking & FinanceMedium
What is the primary objective of implementing the Kisan Credit Card (KCC) scheme through commercial and cooperative banks in the rural districts of Himachal Pradesh?
A. To provide timely, adequate, and flexible institutional credit to farmers for cultivation and allied agricultural needs✓ Correct Answer
B. To finance luxury urban real estate developments
C. To collect municipal property taxes on behalf of village panchayats
D. To subsidize international leisure travel for agrarian households
💡 Solution & Explanation
The Kisan Credit Card scheme simplifies access to short-term formal credit for farmers to purchase seeds, fertilizers, and equipment, reducing reliance on informal lenders. It caters specifically to agricultural working capital rather than urban real estate or leisure travel. Interest subvention schemes further lower borrowing costs for prompt repayers in hilly tracts.
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