The Reserve Bank of India has issued draft Directions to revise and consolidate the Kisan Credit Card (KCC) scheme for agriculture and allied activities, opening the proposals for public comment as part of its plan to expand coverage, streamline operations and address emerging requirements. The draft guidelines standardise crop seasons in months for loan sanction and repayment schedules by defining short duration crops as 12 months and long duration crops as 18 months. To better align loan tenure with crop seasons, particularly longer duration crops, the proposed KCC tenure is extended to six years. Drawing limits under KCC are aligned with the scale of finance for each crop season to reflect the actual cost of cultivation, and eligible components within the existing 20% additional component for repairs and maintenance of farm assets are expanded to include specified technological interventions such as soil testing, real-time weather forecasts and organic or good agricultural practices certification. Separate draft Directions have been issued for commercial banks, small finance banks, regional rural banks and rural co-operative banks, with comments due by 6 March 2026 via the RBI website’s Connect 2 Regulate channel or by email using the subject line specified in the consultation.
Reserve Bank of India 2026-02-12
Reserve Bank of India launches consultation on revised Kisan Credit Card scheme with six-year tenure and standardised crop seasons
The Reserve Bank of India has released draft Directions to revise the Kisan Credit Card scheme, aiming to expand coverage and streamline operations, with public comments due by 6 March 2026. Key proposals include standardizing crop seasons, extending KCC tenure to six years, and aligning drawing limits with cultivation costs, while expanding eligible components for farm asset maintenance.