The Reserve Bank of India has issued new Kisan Credit Card directions for commercial banks, setting a consolidated framework for KCC loans sanctioned from Jan. 1, 2027. The framework applies to domestic operations of covered commercial banks and recasts KCC as a six-year composite facility spanning short-term credit for crops and allied activities and longer-term investment credit. Loans sanctioned before that date will continue under existing guidelines until maturity or the next renewal. The KCC limit will be the Composite Maximum Permissible Limit, combining the sixth-year short-term limit with estimated long-term credit. For crop cultivation, drawing limits are to be based on the notified Scale of Finance multiplied by cultivated area, plus 10 percent for post-harvest expenses and household consumption, 20 percent for repairs, maintenance, technology and certification-related working-capital costs, and any relevant insurance premium. Eligibility covers owner cultivators, tenant farmers, oral lessees, sharecroppers, and relevant self-help groups and joint liability groups, with analogous treatment for allied activities and a Flexi KCC of INR 10,000 to INR 50,000 for marginal farmers. Collateral and margin must be waived for agricultural and allied loans up to INR 200,000 per borrower, with a waiver up to INR 300,000 for certain KCC loans against hypothecation of crops or stock with recovery tie-up arrangements. Banks may maintain separate sub-limits or loan accounts under the composite facility and must enable account operations through channels including UPI, debit cards, mobile and internet banking, NEFT, RTGS and central bank digital currency, subject to explicit customer consent. Banks must submit quarterly KCC data within 15 working days of quarter-end. The directions also repeal the earlier KCC circulars listed in the appendix, while term loans requiring a tenor longer than six years are to be handled outside the KCC framework.
Reserve Bank of India2026-06-19
Reserve Bank of India issues new Kisan Credit Card directions for commercial banks from January 2027
The Reserve Bank of India has issued new Kisan Credit Card directions for commercial banks, effective for loans sanctioned from Jan. 1, 2027. The rules establish a six-year composite KCC facility covering crop and allied working capital and investment credit, update limit-setting and collateral rules, and require digital access and quarterly reporting. Existing loans remain under current rules until maturity or renewal.