General Credit Card (GCC)

Source: Reserve Bank of India Master Circular.

Reserve Bank of India has introduced special credit cards known as General Credit Cards, which are issued to specific category of rural / semi-urban people for their agriculture production needs and other small business needs.

All Credit Cards (e.g. Artisan Credit Card, Laghu Udyami Card, Swarojgar Credit Card, and Weaver’s Card etc.) catering to the non-farm entrepreneurial credit needs of individuals are covered by General Credit Card Scheme.

Objectives

The objective is to increase flow of credit to individuals for entrepreneurial activity in the non-farm sector provided through the General Credit Card.

Eligibility

All non-farm entrepreneurial credit extended to individuals, which is eligible for classification under the priority sector guidelines.

Coverage

The scheme shall cover the entire country.

Nature of financial accommodation

The GCC, preferably, may be issued as a Smart card / Debit card (Biometric smart card compatible for use in the ATMs / Hand held Swipe Machines and capable of storing adequate information on entrepreneur’s identity, assets and credit profile etc.). Wherever the accounts are not digitized, the GCC may be issued as a card/pass book or a credit card cum pass book incorporating the name, address, photograph of the holder, particulars of borrowing limit, validity period etc. for the time being which will serve both as an identity card as well as facilitate recording of the transactions on an ongoing basis.

Quantum of credit limit

There will be no ceiling on the loan amount as long as the loan is for the purpose of non-farm entrepreneurial activity and is otherwise eligible for classification as priority sector. The limits should be fixed on the basis of risk assessment on a case to case basis.

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