RBI set up a high-level committee on agricultural credit chaired by Mr. R.V. Gupta, and he recommended: (A) Abolition of stamp duty on mortgage of agricultural land (B) Modify service area approach (C) Offer farmers a composite credit package (D) Devise a liquid savings package
Choose the correct answer from the options given below:

Correct option is C

The correct answer is (C) (A), (B), (C) and (D)

Explanation:
• The R.V. Gupta Committee was constituted by the Reserve Bank of India in December 1997 to suggest measures for improving the credit delivery system to agriculture.
• The committee submitted its report in 1998 with several far-reaching recommendations.
• Recommendation A: To reduce the cost of credit, the committee suggested that state governments should abolish stamp duty on mortgages of agricultural land.
• Recommendation B: It suggested modifying the Service Area Approach (SAA) to give more flexibility to banks and borrowers.
• Recommendation C: It recommended a "Composite Credit" approach where farmers get all their credit needs (production and investment) handled through a single window or account.
• Recommendation D: It emphasized creating liquid savings mechanisms for farmers to manage their surpluses better.

Information Booster:
• One of the most famous outcomes influenced by this committee was the introduction of the Kisan Credit Card (KCC) scheme in 1998.
• The committee also suggested simplifying the loan application process and documentation.
• It advocated for the removal of the "No Dues Certificate" requirement, which was often a hurdle for farmers.

Additional Knowledge:
• The committee essentially pushed for a shift from "target-based lending" to "commercial-based lending" in agriculture.
• It recommended that banks be given the freedom to fix interest rates on agricultural loans within certain RBI guidelines.