Banking amenities for farmers are set to undergo a makeover. It is quite likely that both small and big farmers are expected to receive plastic smart cards. These cards can be used in ATMs, POS terminals for cash withdrawal and making payments.
Finance ministry has asked Indian Banks’ Association to prepare a plan in this respect, under which over 53 lakh kisan credit cards can be converted to smart cards. The cards are then used as regular credit cards.
Kisan credit cards are the standard passbooks given to the customer by public sector banks with all loan details on which credit and debit entries are frequently updated.
The finance ministry official said, “We have asked IBA to look into the issue of converting KCCs into technology-enabled smart cards that would facilitate easier banking transactions by the farming community whether through ATMs, merchant outlets or banking correspondents in villages”.
All security features have to be included in these smart cards in order to prevent their misuse.
Allen CA Pareira, chairman and MD of Bank of Maharashtra, said the smart-card system would assist banks fulfill farmers’ requirements. He added, “We are examining the feasibility of moving over to the smart-card system. The card would help in storing land records and determining the eligibility and fresh limits for farmers more easily”.
Gobinda Bannerjee, GM of Punjab National Bank, handling agriculture loans, said, “The move would reduce crowding in bank branches since farmers would not have to go to bank branches for cash withdrawals. There are ATMs of banks in rural areas. Many merchants in towns where farmers go to purchase inputs have swipe machines. Smart cards would also eliminate the hazards associated with carrying cash for purchases.”