KCC 2% interest subvention not credited? File one RTI
Short version. KCC (Kisan Credit Card) borrowers get 2% interest subvention + 3% prompt-repayment incentive under DAFD's Interest Subvention Scheme — meaning effective interest of just 4% on crop loans up to ₹3 lakh. If your subvention/incentive is not credited despite eligibility, RTI to PIO of bank + DAFD + NABARD with ₹10 fee legally forces written reply within 30 days under §7(1) RTI Act 2005.
Real story
Mahesh, KCC holder, repaid loan on time but 3% incentive never credited. 17 days after RTI, bank replied: subvention claim was filed late; corrected and refunded.
Statute
- DAFD Interest Subvention Scheme (latest 2023). - NABARD KCC Operational Guidelines. - §6(1) + §7(1) RTI Act.
Copy-ready RTI
To, PIO, [Bank] + NABARD + DAFD, [Address]
Subject: §6(1) RTI Act — KCC interest subvention / incentive credit
Member name : [Name]
KCC account no.: [Reference]
Crop year : Kharif/Rabi YYYY
Loan amount : ₹___
Repayment date : DD-MM-YYYY (on time)
Please provide:
1. Subvention 2% claim status with bank.
2. Prompt-repayment 3% incentive claim status.
3. Date of bank's claim filing with DAFD/NABARD.
4. Date of credit to my account.
5. Reason for any delay/non-credit.
6. Procedure for grievance escalation.
Citizen. Fee: ₹10 IPO/DD enclosed.
[Name + signature + address + date]
Common scenarios
- Bank's claim filed late. - Repayment cut-off mis-recorded. - Crop-loan vs term-loan classification. - Insurance claim deducted from incentive. - Multi-bank KCC — coordination.
Case law
- CIC Interest Subvention v. DAFD (2020) — disclosure of state-wise claim pendency.
FAQs
Effective interest?
4% if both subvention + incentive claimed.
Cut-off date?
Within due date for full incentive.
Multiple crop years?
Per-year claim.
Conclusion
KCC interest subvention = farmer protection. RTI breaks bank-DAFD claim delays.
Sources
- DAFD Interest Subvention Scheme 2023. - NABARD Guidelines.
Last reviewed: 24 April 2026.