In a major boost to the rural economy, Finance Minister Nirmala Sitharaman, while presenting the Union Budget 2025-26, announced an increase in the loan limit under the Modified Interest Subvention Scheme for Kisan Credit Cards (KCC). The loan cap for farmers, fishermen and dairy farmers availing credit through KCC will be raised from Rs 3 lakh to Rs 5 lakh, benefiting 7.7 crore individuals engaged in agriculture and allied activities.
Additionally, the government has unveiled a strategic initiative to reposition India Post’s extensive rural network—comprising 1.5 lakh rural post offices and supported by 2.4 lakh Dak Sevaks and India Post Payments Bank—as a key driver of rural economic growth. This transformation will enhance financial accessibility in remote regions, fostering entrepreneurship and strengthening last-mile connectivity.
Further, India Post will be developed into a large-scale public logistics organisation to cater to the growing needs of Viswakarmas, emerging entrepreneurs, women-led businesses, self-help groups, MSMEs and large enterprises. This initiative is expected to significantly improve supply chain efficiency across rural and urban markets.
In a parallel effort to reinforce the cooperative sector, the government has pledged additional support to the National Cooperative Development Corporation (NCDC) to strengthen its lending operations, ensuring better financial assistance for cooperatives across the country.
These budgetary measures underscore the government’s commitment to empowering rural communities, fostering entrepreneurship and driving inclusive economic growth.
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