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General Credit Card (GCC) Scheme
1. The Scheme
The Scheme shall cover general credit needs of bank constituents in rural and semi-urban areas and shall be referred to as the 'General Credit Card (GCC) Scheme'.
2. Objectives
The objective of the scheme is to provide hassle-free credit to banks’ customers based on the assessment of cash flow without insistence on security, purpose or end-use of the credit. This is in the nature of overdraft or cash-credit with no end-use stipulations.
3. Participating banks
The Scheme may be implemented by all Scheduled Commercial Banks and RRBs at any of their branches.
4. Nature of financial accommodation: Cash withdrawal
The credit facility extended under the Scheme will be in the nature of revolving credit. The GCC-holder will be entitled to draw cash from the specified branch of bank up to the limit sanctioned and in fact, this may be the only feasible mechanism in many cases.
5. Quantum of limit
Banks would have flexibility in fixing the limit based on the assessment of income and cash flow of the entire household. However, the total credit facility under GCC for an individual should not exceed Rs.25,000/-
6. Interest rate
Interest rate on the facility may be charged, as considered appropriate and reasonable.
7. Flexibility in use of credit
The borrowers would be eligible for availment of the credit facilities provided under GCC, as per their requirement, without any insistence on security and the purpose or end-use of the credit.
8. Priority sector lending status
Fifty per cent of credit outstanding under GCC up to Rs.25,000/- will be eligible for being treated as indirect agricultural financing. The eligibility criteria will be subject to review.
9. Form of GCC
It is not necessary that GCC should be linked to purchase and GCC may not necessarily be in the form of a card. GCC can be issued in the form of a Pass Book, if the holder of GCC desires to operate cash withdrawals from bank-branch.
10. Flexibility
Banks may consider appropriate modification provided the essential features of the scheme are maintained and prior approval of the Reserve Bank obtained.
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