Kisan Credit Card: IBA issues guidelines to waive off processing fees, all other service charges

New Delhi: The Indian Banking Association (IBA) has issued advisory guidelines requesting banks to waive off the processing, documentation, inspection, ledger folio charges and all other service charges for Kisan Credit Card /crop loans upto 3 Rs lakh.

The Kisan Credit Card Scheme aims at providing adequate and timely credit support from the banking system under a single window with flexible and simplified procedure to the farmers to meet the short term credit requirements for cultivation of crops, investment credit requirements for agriculture and allied activities and other needs.

The IBA advisory comes amidst reports that some of scheduled commercial banks are collecting a nominal amount of service charges towards processing, documentation, inspection, etc. for agriculture loans. However, some of the banks are collecting service charges which are at a bit higher. This is not irrespective of whether the loan is sanctioned or not. This often acts as a deterrent for the farmers to approach the banks for loans.