It is about how Kisan Credit Card for Financial inclusion for marginalized groups as well as financial plan for flood proofing value chains. How technology innovation can be helpful in disaster mitigation.

1. Kisan Credit Card
for
Financial inclusion for marginalized groups as well as financial plan
for flood proofing value chains.
Sunita Nhemaphuki & Damber Khanal
R & D Innovative Solution Pvt. Ltd.
Date : 29 Sep, 2023

2. Introduction
Kisan Credit Card is a digital payment
tool specifically designed for farmers,
aiming to provide them with timely and
adequate credit support for their
agricultural needs. It can be used to
make payment to more than 6000
merchants around the country.
This credit card allows farmers to
access credit to meet their agricultural
expenses, including purchasing inputs
such as seeds, fertilizers, equipment and
managing other farming expenses. This
initiative enables them to break free
from the cycle of exploitative informal
lending and gain better control over
their agricultural operations.

4. Current Status
Currently following banks are providing the services
for Kisan Credit Card
Nepal Investment Mega Bank, Nabil Bank
Global IME Bank, Prabhu Bank
Majority of them being female .
From rural and semi urban areas.
Loan size from 50K to 500K
The first Kisan Credit Card in Nepal, was launched by Mega Bank
( now Nepal Investment Mega Bank) in Oct 4, 2020.

5. Wider aspects of Kisan Credit Card to enhance
resilience of the agriculture value chain
Although KCC is primarily designed to provide credit to
farmers for agricultural purposes it can
be integrated into a broader financial plan for
flood-proofing value chains in the agricultural sector.
it can play a crucial role in enhancing the resilience
of the agricultural value chain against the impact of
floods.

6. KCC for flood proofing value chains.
• Early warning systems:
The accurate data (i.e. address, mobile no) of the farmers from a particular area
helps to deliver early warning systems precisely to a specific target.
• Access to timely credit :
In the context of flood-proofing value chains, this credit can be utilized to
implement preventive measures and preparedness strategies ahead of the
flood season. Farmers and other stakeholders in the value chain can use the
credit to invest in flood-resistant infrastructure ( storage facilities), and
implement other measures to minimize flood-related damage.
• Insurance Premium Payments:
KCC can also be used to pay insurance premiums for crop and property
insurance coverage. Having insurance coverage against flood-related damages
can be a significant financial safeguard for the value chain. In case of flooding,
insurance claims can help cover losses incurred by farmers and other actors in
the chain, ensuring a quicker recovery process.

7. Input Procurements:
With the KCC, farmers can purchase
necessary inputs such as seeds, fertilizers,
and pesticides well in advance of the flood
season. This allows them to plan their
planting schedules and other agricultural
activities in a way that mitigates the impact
of floods. By having the necessary inputs on
hand before the floods, farmers can resume
their operations more quickly after the water
recedes.
.
KCC for flood proofing value chains.
Post Flood Recovery
After a flood event, the KCC can
help farmers and value chain participants
access the funds needed to restore their
operations. This could include replenishing
lost inputs, and restarting agricultural
activities. The credit available through the
KCC can speed up the recovery process and
reduce downtime.

8. Governments, Development
Partners and financial institutions
can work together to provide
special KCC schemes for timely
and effective delivery of relief
packages.
Timely & Collaborate
Delivery of Relief Support
KCC for flood proofing value chains.
These card
are the
property of
respective
banks.

9. Capacity Building
& Education
Financial literacy and Capacity
building programs can be
integrated into the KCC
framework. Farmers can
receive training on effective
utilization of credit for flood
mitigation and recovery
strategies. This could involve
workshops on risk
management, crop
diversification, and sustainable
agricultural practices
KCC for flood proofing value chains.

10. By aligning the Kisan Credit Card program with flood-proofing initiatives,
stakeholders can ensure that credit is not only used for agricultural inputs but
also for investments that increase the overall resilience of the value chain
against flood events. This approach integrates financial resources, risk
management strategies, and agricultural practices to create a holistic solution
that addresses the challenges posed by floods.

11. Lets collaborate together for agriculture transformation
Thanks
Sunita Nhemaphuki, Email : sunita@agrinepal.com Tel: +977-9851140610,
www.agrinepal.com