Kisan Credit Card Scheme MCQ - Practice Questions with Answers

Statement 1 is correct because the scheme was extended in 2019 to cover working-capital needs of animal husbandry, dairying and fisheries. Statement 2 is incorrect: the eligible borrower list expressly includes tenant farmers, oral lessees and sharecroppers, along with owner-cultivators and specified farmer groups. Hence only statement 1 is correct.

The Kisan Credit Card is a revolving cash-credit account, not a subsidy or one-time grant. A farmer may withdraw and repay repeatedly within the sanctioned limit through channels such as bank branches, cheques, cards, business correspondents and mobile banking. Its flexible credit design is therefore the defining feature in option B.

The National Bank for Agriculture and Rural Development formulated the Model Kisan Credit Card Scheme, in consultation with major banks, on the recommendation of the R. V. Gupta Committee. The Reserve Bank of India then circulated it to commercial banks on 5 August 1998, so formulation and circulation must not be confused.

For the first year, the base is the district scale of finance for the crop multiplied by cultivated area. The calculation then adds 10% for post-harvest, household and consumption requirements, 20% for repairs and maintenance of farm assets, and the relevant insurance costs. Therefore the 10%-and-20% pairing in option C is correct.

The chronology is exact: investment credit for allied and non-farm activities was added in 2004; electronic Kisan Credit Card delivery through RuPay followed the 2012 simplification and restructuring; working-capital coverage reached animal husbandry and fisheries in 2019; and the Kisan Rin Portal was launched on 19 September 2023. Thus a-2, b-4, c-1, d-3 is correct.