• Source:JND
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Kisan Credit Card Scheme: The Reserve Bank of India (RBI) on Thursday, February 12, issued draft directions to overhaul and consolidate guidelines for the Kisan Credit Card (KCC) scheme. These draft guidelines aim to expand coverage, streamline operational aspects and address emerging requirements in the agricultural sector.

The Reserve Bank of India has invited regulated entities, members of the public and other stakeholders to submit their comments and feedback on the draft guidelines by March 6, 2026, news agency PTI reported.

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A Look At Major Changes In The Kisan Credit Scheme

The draft guidelines introduced major changes to the Kisan Credit Card (KCC) scheme.

- Standardised Crop Cycles: In a bid to ensure uniformity in loan sanction and repayment schedules, the RBI has proposed standardising crop seasons by duration. For short-duration crops, the period has been set at 12 months, while for long-duration crops, the period has been set at 18 months, Jagran.com reported.

- Extended Loan Tenure: To better align credit availability with these standardised seasons, the overall tenure of KCC has been increased to six years.

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- Scale-Base Credit Limits: The RBI has also proposed to align drawing limits under KCC with the actual scale of finance for each crop season, ensuring farmers receive sufficient credit based on the actual cost of cultivation.

- 20% Additional Component: The scope of the 20 per cent additional component, which currently covers repair and maintenance of farm assets, has been expanded to cover modern technological expenses such as soil testing, weather forecasting, and organic certification.

(With PTI Inputs)


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