Effectiveness of financial inclusion programmes for agricultural households: A case of Kisan Credit Card scheme in India

This study aims to examine the outreach of the Kisan Credit Card (KCC) scheme in India and to identify the determinants of access to KCC among the agricultural households. It employs the unit level secondary data from the large scale NSSO 77th round survey conducted in 2018–19 and other officially...

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Main Authors: PAVITHRA S, ALKA SINGH
Format: Article
Language:English
Published: Indian Council of Agricultural Research 2025-05-01
Series:The Indian Journal of Agricultural Sciences
Subjects:
Online Access:https://epubs.icar.org.in/index.php/IJAgS/article/view/146970
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author PAVITHRA S
ALKA SINGH
author_facet PAVITHRA S
ALKA SINGH
author_sort PAVITHRA S
collection DOAJ
description This study aims to examine the outreach of the Kisan Credit Card (KCC) scheme in India and to identify the determinants of access to KCC among the agricultural households. It employs the unit level secondary data from the large scale NSSO 77th round survey conducted in 2018–19 and other officially published data sources. Correlates of the access to KCC were identified using a probit model. The coverage of KCC scheme varied widely across the regions in India. The central and southern regions had a highest share in the operative number of KCCs at 26% each. Share in outstanding amount against KCC was at 35% and 23% respectively in the southern and northern regions. Thus, the southern region fared well both in terms of coverage and outstanding amount advanced against the KCCs. However, results from the household level data showed that despite having a fair access to institutional credit services in terms of access to a bank account, only 19.12% of agricultural households reported to have a KCC. The outreach was limited among the disadvantaged socio-economic groups and female headed households. The determinants of agricultural households’ access to KCC were age, education and gender of the household head, caste, access to extension services, landholding size, share of non-farm income, access to institutional credit facilities and major economic activity of the household. The study concludes that the outreach of the KCC scheme needs to be strengthened in case of the disadvantaged social groups and regions.
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spelling doaj-art-652432799e85451e94432012fba8c94f2025-08-20T02:07:51ZengIndian Council of Agricultural ResearchThe Indian Journal of Agricultural Sciences0019-50222394-33192025-05-0195510.56093/ijas.v95i5.146970Effectiveness of financial inclusion programmes for agricultural households: A case of Kisan Credit Card scheme in IndiaPAVITHRA S0ALKA SINGH1ICAR-Indian Agricultural Research Institute, New Delhi 110 012, India2ICAR-Indian Agricultural Research Institute, New Delhi This study aims to examine the outreach of the Kisan Credit Card (KCC) scheme in India and to identify the determinants of access to KCC among the agricultural households. It employs the unit level secondary data from the large scale NSSO 77th round survey conducted in 2018–19 and other officially published data sources. Correlates of the access to KCC were identified using a probit model. The coverage of KCC scheme varied widely across the regions in India. The central and southern regions had a highest share in the operative number of KCCs at 26% each. Share in outstanding amount against KCC was at 35% and 23% respectively in the southern and northern regions. Thus, the southern region fared well both in terms of coverage and outstanding amount advanced against the KCCs. However, results from the household level data showed that despite having a fair access to institutional credit services in terms of access to a bank account, only 19.12% of agricultural households reported to have a KCC. The outreach was limited among the disadvantaged socio-economic groups and female headed households. The determinants of agricultural households’ access to KCC were age, education and gender of the household head, caste, access to extension services, landholding size, share of non-farm income, access to institutional credit facilities and major economic activity of the household. The study concludes that the outreach of the KCC scheme needs to be strengthened in case of the disadvantaged social groups and regions. https://epubs.icar.org.in/index.php/IJAgS/article/view/146970Access to KCC, Financial inclusion, Institutional credit, Kisan Credit Card
spellingShingle PAVITHRA S
ALKA SINGH
Effectiveness of financial inclusion programmes for agricultural households: A case of Kisan Credit Card scheme in India
The Indian Journal of Agricultural Sciences
Access to KCC, Financial inclusion, Institutional credit, Kisan Credit Card
title Effectiveness of financial inclusion programmes for agricultural households: A case of Kisan Credit Card scheme in India
title_full Effectiveness of financial inclusion programmes for agricultural households: A case of Kisan Credit Card scheme in India
title_fullStr Effectiveness of financial inclusion programmes for agricultural households: A case of Kisan Credit Card scheme in India
title_full_unstemmed Effectiveness of financial inclusion programmes for agricultural households: A case of Kisan Credit Card scheme in India
title_short Effectiveness of financial inclusion programmes for agricultural households: A case of Kisan Credit Card scheme in India
title_sort effectiveness of financial inclusion programmes for agricultural households a case of kisan credit card scheme in india
topic Access to KCC, Financial inclusion, Institutional credit, Kisan Credit Card
url https://epubs.icar.org.in/index.php/IJAgS/article/view/146970
work_keys_str_mv AT pavithras effectivenessoffinancialinclusionprogrammesforagriculturalhouseholdsacaseofkisancreditcardschemeinindia
AT alkasingh effectivenessoffinancialinclusionprogrammesforagriculturalhouseholdsacaseofkisancreditcardschemeinindia