Introduction
Handicraft activities occupy an important position in the economic structure of J&K State. Being environment friendly, these activities are best suited to the state as they are more labour intensive and less capital intensive in nature, thus having scope for employment generation at a large scale. The Kashmir handicraft products have earned worldwide fame for their attractive designs, functional utility and high quality craftsmanship. In absence of other manufacturing industries in the state, handicrafts remained a key economic activity from time immemorial. The artistic imagination and craftsmanship of the Artisans reflected through a wide range of products, has delighted the connoisseurs world over for centuries. Crafts like Shawls, Crewel, Namdha, Chain Stitch, Wood Carving, Paper Machie, Costume Jewellery, Kani Shawls and the Carpets hold a significant share in the overall production and export of the State. Silken carpets in particular constitute a specialty having no parallel in quality and design at national level and, therefore, occupy an important position in the international market. The handicraft sector of the state has great contribution towards foreign exchange earnings of the country.

Artisan Credit Card Scheme:
The Artisan Credit Card Scheme has been devised by Indian banks Association (IBA) to provide hassle free credit facility to artisans. The scheme approved by R.B.I. and the Development Commissioner (Handicrafts) has been adopted by the Banks for implementation.

Objective
The objective of the ACC scheme is to provide adequate and timely assistance from the banking institutions to the artisans to meet their credit requirements of both investment needs as well as working capital, in a flexible and cost effective manner. The scheme would be implemented both in rural and urban areas.

• All artisans involved in production/ manufacturing process are eligible
• Thrust in financing clusters of artisans and Self Help Groups (SHGs)
• No collateral security
• Beneficiaries will be issued with a photo card indicating sanctioned limit and validity period of credit facility.
• Credit limit would be fixed based on assessment of working capital requirements.
• A maximum of credit limit of Rs. 2.00 lacs.
• Beneficiaries registered with Development Commissioner (Handicrafts) would be eligible for coverage under group insurance scheme.

Eligibility

• All artisans involved in production/ manufacturing process (and otherwise eligible for credit facilities, for carrying out the proposed activities under any existing bank schemes) would be eligible.
• Preference would be given to artisans registered with Development Commissioner (Handicrafts).
• Thrust of financing would be on clusters of artisans and artisans who have joined to form Self Help Groups.
• Beneficiaries of other Government sponsored loan schemes will not be eligible for coverage under ACC scheme.

Issue of Cards:

• Beneficiaries will be issued a photo card indicating sanctioned limit and validity period of credit facility.
• Will also be issued a passbook or a credit cum passbook incorporating name, address, borrowing limit, validity period, etc.

Fixation of credit limit:

• Credit limit would be fixed on the basis of assessment of working capital requirements as well as cost of tools and equipments required for carrying out manufacturing process.
• The maximum credit limit to be sanctioned under the scheme would, however, be Rs. 2.00 lacs.
• The limit is to be utilized as revolving cash credit and will provide for any number of drawls and repayments within the limit. As the limit sanctioned would normally have a validity of 3 years the need to accommodate incremental working capital requirements may be kept in view.

Margin

Validity/ renewal of limits

• The ACC limit could normally be valid for a period of three years subject to the annual review of the bank. For the purpose of annual review the borrower may not be required to submit any financial statement. Based on assessment of performance during the inspection by the field staff and operations in the account, the review exercise may be carried out annually and decision on continuation or otherwise of the limit sanctioned may be taken.
• Need for enhancement in the limit sanctioned may also be considered as a part of the review. No fee will be charged for review/ renewal of the limit.

Security

• As per the guidelines of RBI from time to time or the bank’s policy in this regard
• The current RBI instructions do not permit banks to take collateral security for the quantum of finance envisaged under the scheme.
• However, the assists financed would be hypothecated and towards this necessary security documents would be obtained as per the norms.

Rate of interest:

• As per RBI norm/bank policy.

Insurance Cover

• Beneficiaries who are registered with Development Commissioner (Handicrafts) would be eligible for coverage under group Insurance scheme and the premium paid by the Government and the beneficiaries in the ratio of 60:40 respectively or as mutually agreed between the office of the Development Commissioner (Handicrafts) and the Insurance Company.
• Insurance cover may be arranged for the assets financed as per existing practices in the banks.
• Bank who is member of credit Guarantee Trust Fund for Small Industries (CGTSI) would be eligible for credit guarantees cover under the scheme.

Implementation of the Handicrafts (Year wise Target and Achievements)

For more information, please visit: http://www.jkhandicrafts.com/

Bankwise Progress As of March 2020

Districtwise Progress As of March 2020