/Head Office: Shri Vishnu Commercial Complex

NH-30, New Bypass, Near BP Highway Services Petrol Pump,

Asochak, Patna-800030
Phone – 0612-2385114

L&A Department

TO ALL OFFICES Date: 22-06-2022

In supersession of Loans & advances

Circular No 11/19 07-03-2019

Loan & Advances Circular No. 13/2022

REG: RENEWAL/ Enhancement-DBGB KISAN CREDIT CARD (KCC)

Detailed guidelines regarding DBGB Kisan Credit Card Scheme (KCC) have been
circulated to all Offices vide Loan & Advances Circular No. 09/20 dated 20-03-20.
Moreover some KCC related guideline also circulated to all Offices vide Loan &
Advances Circular No. 08/20 dated 20-03-20, 11/19 dated 07-03-19, 28/19 dated 27-06-
2019 &Circular Letter 03/22 dated 07-05-22.

KCC is important loan scheme for development of agriculture sector. KCC loan
portfolio is 48.50 % of bank Loan & Advances, so credit quality of KCC loans are
important for the bank. Guidelines on the captioned scheme have been updated in
the light of guidelines issued by RBI/NABRD as per the attached Annexure.

Incumbent In-charge of the branches and all offices are advised to adhere to
guidelines contained in the scheme for financing under DBGB Kisan Card and boost
agriculture advances. This circular will be effective till further instruction.

GENERAL MANAGER

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 Annexure
KCC account may be categorized in mainly three category:-
1. Regular Account
2. Overdue Account
3. NPA Account

Again KCC account may be categorized on basis of Loan limit & documentation and
accordingly account may be renewed/ enhanced as per below condition:
1. Regular account
a) If Loan document is legally enforceable and there is no need to increase
loan limit:
For KCC renewal, a request letter and BC from borrower should be obtained
and renewal of KCC account should be done for 5 year.
b) If Loan document is legally enforceable and there is need to increase loan
limit:
For KCC Loan limit enhancement, a new KCC booklet, LPC/Affidavit/Receipt
(as applicable) and BC from Borrower should be taken and accordingly limit
should be enhanced on basis of Scale of Finance.
2. Overdue
In this case, above guideline (1. a/b as applicable) may be followed and
account should be renewed.
3. NPA
In this case, above guideline (1. a/b as applicable) may be followed and
account should be renewed.

Other guideline:
1. RENEWAL/ ENHANCEMENT OF THE KCC LIMIT:
i. The card is valid for a period of 5 years, subject to an annual review.
ii. The review may result in continuation of the facility, enhancement of the
limit or cancellation of the limit / withdrawal of the facility, depending
upon increase in cropping area / Scale of finance.
iii. The card will be renewed on merits of the case at least one month before
expiry of the current card on a simple hand written request from the
cardholder.
iv. If the renewal is with the same limit, it may be renewed by issuing fresh
card along with a sanction letter to the card holder. While renewing
existing KCC, a hand written application should be taken from Borrowers
and if particulars of his/her land holdings with nature of rights are on Bank’s
record, local enquiries may be made to verify the present position and in
case there is no adverse change, loan may be considered without asking
for fresh copies of revenue records/ LPC. Self-declaration may be taken for
loan upto ₹1,60,000.00 for renewal of KCC regarding no change in land
Holding & Cropping Pattern.
v. If there is any variation (enhancement) in the existing limit, fresh
documents are to be obtained.
vi. Branches will obtain the documents for the full Sanctioned Amount
calculated for the 5th years. However, the operative limit may be
enhanced every year but no fresh documents are required. The borrower

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 should be intimated about every successive revision in the operative limit
and his consent be also obtained each time on the format given in the
Appendix IV.
vii. When the bank has granted extension and/or re-schedulement of the
period of repayment on account of natural calamities affecting the
farmer, the guidelines issued for providing relief and rehabilitation
assistance to people in areas affected by natural calamities are to be
followed
viii. NPA account may be renewed/ enhanced as per above mentioned
guideline.

2. LPC Requirement:
• For establishing ownership/ cultivation rights, LPC is not mandatory for loan
upto ₹1,60,000.00. Instead of LPC, an Affidavit regarding Land Record may
be taken along with land revenue receipt (Malgujari Rashid).
If the Land Revenue Receipt (Malgujari Rashid) belongs to Father/Grand
Father/ Great Grand Father of the Applicant, in that situation processing
officer should take self-attested copy of batwara/ Vanshwali/Panchnama
from borrower.

 For loans upto ₹50,000.00, copies of revenue extracts may not be insisted
upon and in lieu thereof, branches may accept the following revenue
documents for short term loan:
(i) Extract from the latest Revenue/ Agricultural Pass Book issued by State
Revenue Department.
OR
(ii) Receipt issued by the State Revenue/ Land Possession Certificate
(LPC)/Irrigation Department for payment of land revenue or irrigation
charges or any other document issued by State Revenue Department
containing details of ownership/ cultivation rights, kila/ plot number, area
of land and other requisite details. LPC should not be more than Nine
months old. Guidelines.
OR
(iii) In case a farmer is already availing crop loan/term loan from our Bank
and particulars of his/her land holdings with nature of rights are on Bank’s
record, local enquiries may be made to verify the present position and in
case there is no adverse change, loan may be considered without asking
for fresh copies of revenue records every time upto three years.
OR
(iv) A simple Application-cum-verification report containing details of land
duly countersigned by Revenue Officials, viz., Patwari/ Naib Tehsildar/
Tehsildar/ C.O., etc.
OR
(v) An affidavit containing details of land tilled/crops grown. However,
farmer will give an undertaking in the affidavit that he has not raised any
loan from other banks/financial institutions.

 For limit above ₹1,60,000.00, the guidelines in vogue are to be followed.

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3. Service Area Approach:
Since all PMKISHAN beneficiaries has to be covered under KCC scheme as well,
hence Service area approach is not applicable for KCC loan.

4. EXTENT OF LIMIT:
Landless Farmers, Share Croppers, Tenant Farmers and Oral lessees can be
given KCC loan though JLGs also, upto ₹50,000.00 per individual.

5. Obtaining of “No Dues Certificate”:

a. “No Dues Certificate” is not to be obtained for agricultural loans from
individual borrowers (including SHGs and JLGs) in rural and semi urban areas.
However, for loans above ₹1,60,000.00, affidavit to this effect be obtained
from such borrowers.
b. For borrowers in urban areas and borrowers other than above “No Dues
Certificate”/ ‟Affidavit‟ is not to be obtained for agricultural loans up to
₹1,60,000.00.
c. However, for agricultural loans above ₹1,60,000.00, obtaining of Affidavit in
lieu of "No Dues Certificate" is allowed.
RBI has advised Banks to encourage use of alternative framework of due
diligence as part of credit appraisal exercise other than the „ No Dues
Certificate ‟ which could, among other, consist of one or more of the following:
• Credit history check through credit information companies.
• Self -declaration or an affidavit from the borrower
• CERSAI registration
• Peer monitoring Information sharing among lenders
• Information search (writing to other lenders with an auto deadline)

6. LOANING POWERS:
Loaning powers should be exercised as per Loans & Advances Circulars issued
from time to time presently as per L & A circular No. 64/20 dated 04.08.20. All
branches (including Loaning Power seized) may utilize their vested loaning
power of their respective scale for renewal/ enhancement of KCC Loan
account.

7. FIXATION OF LIMIT:
Need based credit is to be provided to the farmers depending upon scale of
finance for respective crops duly approved by the concerned State Level
Technical Committee. However, Regional Offices have the freedom to decide
the scale of finance and State Level Technical Committee norms should only be
used as a broad indicator.

The credit limit under the Kisan Credit Card may be fixed as under:
• 1st Year-Scale of finance for the crop (as decided by State Level Technical
Committee) x Extent of area cultivated + 10% of limit towards postharvest/
household/ consumption requirements + 20% of limit towards repairs and
maintenance expenses of farm assets + crop insurance and/or accident
insurance including health insurance & asset insurance.

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 • 2nd & subsequent year: First year limit for crop cultivation purpose arrived at
as above plus 10% of the limit towards cost escalation/ increase in scale of
finance for every successive year (2nd, 3rd, 4th and 5th year) and estimated
term loan component for the tenure of Kisan Credit Card, i.e., five years.

8. AADHAR Seeding
To ensure hassle free benefits to farmers under Interest Subvention Scheme,
branches are advised to ensure mandatory AADHAR linkage for availing short-
term loans.

9. Data Cleansing
KYC/ e-KYC is mandatory for all KCC Loan. All data cleansing (M/F, Category-
Gen/SC/ST/OBC, SF/MF/OF, Adress, ID proof, AAdhar Seding, ROI etc.) related
to KCC loan should be completed while renewal/ enhancement of KCC Loan.
All ID proof related data must be filled in respective filed, so that credit
information data could be sent to CICs/ Credit Rating Agencies.

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