Gujarat’s banks have reported a significant rejection rate of 43% for Kisan Credit Card (KCC) applications in the animal husbandry and fisheries sectors, as per the latest report from the State Level Bankers’ Committee (SLBC). The rejection figures, outlined in the report, reveal that of the 3.07 lakh KCC animal husbandry applications received, approximately 1.33 lakh applications were rejected, while 1.34 lakh were sanctioned.
The fisheries sector in Gujarat mirrors a similar scenario, with 43% of the 16,661 applications received being rejected, and 8,150 applications sanctioned. Reasons for rejection in the fisheries sector include the absence of a valid fishing license and applicants solely engaged in trading activities.
The extension of the KCC facility to the fisheries and animal husbandry sector by the Centre in 2018-19 aimed to support these sectors financially. However, a considerable number of rejections were attributed to reasons such as applicants being defaulters, providing incomplete or incorrect information, and multiple applications for the same milch animal, among other factors.
Concerns over the high rejection rate of KCC applications in the Animal Husbandry and Fisheries sectors were raised during the SLBC meeting on December 12, 2023. Officials urged banks to find effective solutions to reduce the rejection rate and ensure wider financial inclusion in these vital sectors.
