How to Open a Farmers (Krishi) Bank Savings Account?

Financial security is more crucial for farmers, allowing them to weather unexpected storms and invest in their future. To obtain full leverage of a farmer’s savings account, a person should know its features, interest rates, steps involved in opening the account, and who is eligible.

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What is a Farmers Savings Account?

A farmer savings account, also known as a Krishi savings account, is a specialised banking instrument designed exclusively for those involved in agriculture. It serves as a secure platform for farmers to manage their funds efficiently and access various banking services.

Farmers have unique financial needs due to the seasonal nature of their income and the challenges inherent in agricultural activities. A farmer savings account provides easy money management in rural areas with low requirements and convenient transactions, empowering their finances.

What are the Features and Benefits of a Krishi Savings Account?

Unlike traditional savings accounts, farmer savings accounts often come with various features and benefits, such as:

Low Half-Yearly Balance: Farmers' savings accounts often come with low half-yearly balance requirements i.e. ₹2500/-, ensuring that farmers can maintain their accounts without the burden of high fees.
Access your Account Anytime: Debit cards are often provided with farmer savings accounts, allowing for convenient access to funds at ATMs, online banking, making transactions, transferring funds, and point-of-sale terminals.
Monthly E-Statements: To keep track of their financial activities, farmers receive monthly e-statements detailing their account transactions. This digital record-keeping not only enhances transparency but also promotes financial literacy.
Free Insurance Cover: Farmer savings accounts come with complimentary insurance coverage, offering financial security. This additional benefit ensures that farmers can safeguard their livelihoods against unforeseen circumstances.
Customised Banking Experience: Some banks offer agricultural extension services and financial literacy programs tailored to the needs of farmers. This includes tailored services such as relationship program management and personalised cheques.
Easy Withdrawals: It allows easy and convenient withdrawals, ensuring that account holders can access their funds when needed. The daily withdrawal limit varies among banks, but usually, it is around ₹10,000 to ₹40,000.

How to Open a Farmers Savings Account?

african farmer opening a farmers bank savings account through mobile

Opening a farmer savings account is a straightforward process which can be done with online and offline methods involving steps, such as:

Steps to Open Farmers Savings Account Offline

The steps involved in opening a farmer's savings account through offline methods are as follows:

Step 1: Visit the Nearest Bank Branch: Go to the nearest bank branch that offers savings account services. Approach the designated account opening section in the branch.
Step 2: Terms and Conditions: Understand the terms and conditions associated with the account. You can ask the bank for any doubt.
Step 3: Form Filling and Submission: Fill out the account opening form provided by the bank, providing accurate personal details. Submit all the required documents carefully.
Step 4: Verification: The verification process by the bank may involve checking the details against government databases and physically inspecting the documents.
Step 5: Approval and Account Details: After successful verification, your account will be approved and you will receive account details and a passbook from the bank.
Step 6: Fund the Account: Deposit the minimum balance required that ranges from ₹2500 to ₹5000, often nominal in Kirshi savings accounts.

Steps to Open Farmers Savings Account Online

To open your farmer's savings account online you have to follow these simple steps:

Step 1: Visit the Bank’s Website: Access the bank's official website. Navigate to the prominently displayed online account opening section on the homepage.
Step 2: Terms and Conditions: Review and comprehend the terms and conditions linked to the account carefully You can reach out to the bank if you have any questions.
Step 3: Fill Online Form: Complete the online application form on the bank's website with accurate details. Enter all the details, and upload the necessary documents as required.
Step 4: E-KYC: Initiate the bank's electronic Know Your Customer (e-KYC) process for identity verification. Validate the provided information against government databases.
Step 5: Confirmation: Upon successful e-KYC, the bank will electronically confirm the approval of the savings account via email, SMS or call.
Step 6: Funding: No matter if you are opening the account online or offline you have to pay the same amount, i.e., ₹2500 to ₹5000 for showcasing the minimum deposit balance.

What are Documents Required to Open a Farmer's Savings Account?

The documentation process for opening a farmer savings account typically includes the following:

PAN Card: Permanent Account Number for taxation purposes.
Voter ID: Proof of identity and citizenship.
Driving License: Government-issued identification with a photograph.
Aadhar Card: Unique identification linked to biometric and demographic data.
NREGA Card: National Rural Employment Guarantee Act card for rural employment proof.
Passport Size Photos: Recent photographs of the account holder.
Certificate from the Village Administrative Officer: Verification of residence and community status.
Land Document: Proof of land ownership or cultivation.

Farmer's Bank Savings Interest Rates in India, 2023

The farmer receives interest earnings, which are subject to yearly taxation in the year they've earned. We have listed out the information from the top 3 banks as of December 2023:

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Bank	Account Name	Interest Rate (%)
HDFC Bank	Savings Farmers Account	3.00% to 3.50%
Axis Bank	Krishi Savings Account	2.75% to 3.00%
SBI	Kisan Dhan Savings Account	2.75% to 3.00%

Who is Eligible for a Krishi Savings Account?

an african farmer woman opening her farmers saving account online through mobile

Eligibility extends beyond traditional farming roles to encompass various segments contributing to the rural livelihoods of people including:

Members of Village Level Co-op Societies: Individuals associated with Village Level Co-operative Societies are eligible for farmer savings accounts. These societies play a vital role in agricultural development and community support.
Handicraft Workers: Artisans engaged in handicraft activities are considered eligible for farmer savings accounts. This inclusion recognises the diverse nature of occupations within rural communities.
Fruits and Vegetable Vendors: Vendors involved in the sale of fruits and vegetables, integral to the agricultural supply chain, are eligible to open and have access to a farmer savings account.
Members of Tribal Communities: Farmers from tribal communities are recognised as eligible account holders, acknowledging the unique challenges and contributions of tribal populations to agriculture.
Members of Rural Development Trust: Individuals actively participating in rural development initiatives and trusts are eligible for farmer savings accounts, promoting holistic community development.
Landless Laborers: Even those without direct land ownership but engaged in agricultural activities, such as landless labourers, are eligible for opening and owning farmer savings accounts.
Other Sectors: Individuals engaged in horticulture, sericulture, floriculture, and other allied sectors are eligible for farmer savings accounts. This broader eligibility ensures inclusivity across diverse agricultural activities.

Farmer savings accounts stand as a testament to inclusive banking, ensuring financial inclusivity and empowerment within the agricultural domain. By addressing the distinctive financial needs of those nurturing the fields, these accounts pave the way for sustainable rural development, fostering a robust economic landscape.

FAQs about Farmers Savings Account

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Which banks provide Kisan cards?

The Kisan card can be obtained from all Indian banks, regional rural banks, and cooperative banks. This scheme provides short-term credit limits for crops as well as term loans.

What is a Kisan Club savings account?

The Kisan Club Savings Account, provided by different banks, is tailored for farmers and includes complimentary personalised chequebooks along with phone, mobile, and internet banking services.

Can Non-farmers open a farmers savings account?

No, non-farmers typically can't open farmers' savings accounts due to eligibility requirements like residing in a rural area or being involved in any form of agricultural activities. But, it can vary between banks and states.