What are the key changes in the RBI's draft Kisan Credit Card guidelines?

The draft guidelines propose a single framework for agriculture, extend loan tenure to six years, standardize crop cycles, align drawing limits with cultivation costs, and include expenses like soil testing and organic certification.

How will the Kisan Credit Card scheme be updated regarding loan tenure?

The loan tenure for the Kisan Credit Card scheme is proposed to be extended to six years, which is particularly beneficial for farmers growing long-duration crops.

What new expenses can farmers cover with KCC funds under the revised guidelines?

Under the draft rules, farmers can use KCC funds for expenses such as soil testing, real-time weather information, and certification for organic or good agricultural practices.

Home / Business and Economy / RBI Revamps Kisan Credit Card Scheme for Farmers

RBI Revamps Kisan Credit Card Scheme for Farmers

13 Feb

Summary

RBI proposes a single, streamlined framework for agriculture and allied activities.
Loan tenure extended to six years, matching crop cycles and income timelines.
Draft rules include expenses like soil testing and organic certification.

RBI Revamps Kisan Credit Card Scheme for Farmers

The Reserve Bank of India (RBI) has released draft guidelines to overhaul the Kisan Credit Card (KCC) scheme, consolidating agriculture and allied activities under one framework. These revisions seek to broaden credit access and enhance farm loan flexibility.

The proposed framework introduces standardized crop cycles, with short-duration crops following a 12-month cycle and long-duration crops an 18-month cycle. This aims to create uniform loan sanction and repayment schedules for farmers.

A significant proposal is extending the KCC loan tenure to six years. This change will benefit farmers growing long-duration crops, allowing repayment schedules to better align with actual crop cycles and income.

Drawing limits will now be based on the official scale of finance for each crop season, ensuring credit accurately reflects cultivation costs. The scheme also expands eligible expenses to include soil testing, weather information, and certifications for organic farming practices.

The RBI is accepting public comments on these draft directions until March 6, 2026, before finalising the new rules.

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