Under the Kisan Credit Card scheme, short-term credit support is given to farmers for which of the following purposes?
1. Working capital for maintenance of farm assets
2. Purchase of combine harvesters, tractors and mini trucks
3. Consumption requirements of farm households
4. Post-harvest expenses
5. Construction of family house and setting up of village cold storage facility
Select the correct answer using the code given below:

1, 2 and 5 only

1, 3 and 4 only

2, 3, 4 and 5 only

1, 2, 3, 4 and 5

APEDIA

UPSC Prelims

2020 • 04 Oct, 2020 • Paper-1

Under the Kisan Credit Card scheme, short-term credit support is given to farmers for which of the following purposes?
1. Working capital for maintenance of farm assets
2. Purchase of combine harvesters, tractors and mini trucks
3. Consumption requirements of farm households
4. Post-harvest expenses
5. Construction of family house and setting up of village cold storage facility
Select the correct answer using the code given below:

Correct Answer

1, 3 and 4 only

Core Objective of KCC: The Kisan Credit Card scheme was launched specifically to provide adequate and timely 'short-term' credit to farmers under a single windo......

💡 Analysis & Explanation

Core Objective of KCC ▼

The Kisan Credit Card scheme was launched specifically to provide adequate and timely 'short-term' credit to farmers under a single window for their day-to-day cultivation and allied needs.

Eligible Short-Term Expenses ▼

According to RBI and NABARD guidelines, KCC limits cover crop production expenses, post-harvest expenses (Point 4), working capital for farm maintenance (Point 1), and crucially, a portion of the loan is specifically designated to meet the essential consumption requirements of the farmer's household (Point 3).

Exclusion of Long-Term Capital ▼

Purchasing massive heavy machinery like combine harvesters and tractors (Point 2) or building permanent structures like family houses and cold storage facilities (Point 5) demand extensive 'long-term' capital investment loans, not short-term KCC revolving credit.

Conclusion ▼

Thus, points 1, 3, and 4 accurately reflect the short-term financing nature of the scheme.

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