The Reserve Bank of India has issued new directions for the Kisan Credit Card scheme for rural co-operative banks, setting a standardized framework for loans sanctioned by State Co-operative Banks and Central Co-operative Banks from January 1, 2027. The directions position KCC as a six-year composite facility covering short-term working capital for crop cultivation and allied activities, post-harvest and produce marketing needs, household consumption, insurance premiums and investment credit for agriculture and allied activities. The framework broadens operational detail around eligibility, limit-setting and servicing. Eligible borrowers include owner cultivators, tenant farmers, oral lessees, sharecroppers, and farmer Self-Help Groups and Joint Liability Groups. For crop and allied activity working capital, drawing limits are linked to the applicable Scale of Finance and include add-ons of 10 per cent for post-harvest expenses and household consumption and 20 per cent for maintenance, soil testing and specified technology and advisory services, plus insurance premiums where applicable. Marginal farmers may receive a Flexi KCC of INR 10,000 to INR 50,000 without linking the limit to land value. The directions also waive collateral and margin requirements for agricultural and allied loans up to INR 2 lakh per borrower, while allowing waiver up to INR 3 lakh for certain KCC loans backed by hypothecation of crops or stock with recovery tie-up arrangements. Banks may maintain separate sub-limits for crop, allied and long-term components, must monitor end use, and are required to enable KCC operations through channels including UPI, debit cards, mobile and internet banking, NEFT, RTGS and CBDC with the account holder's consent. The directions apply only to KCC loans sanctioned from January 1, 2027. Loans sanctioned before that date will continue under the existing guidelines until maturity or the next renewal.
Reserve Bank of India2026-06-19
Reserve Bank of India issues new Kisan Credit Card framework for rural co operative banks from January 1 2027
The Reserve Bank of India has set a new Kisan Credit Card framework for rural co-operative banks, applicable to loans sanctioned from January 1, 2027. It establishes a six-year composite credit facility for crop, allied and investment needs, updates limit-setting rules and allows Flexi KCC of INR 10,000 to INR 50,000 for marginal farmers. Collateral and margin are waived up to INR 2 lakh per borrower, with digital access channels including UPI and debit cards to be enabled.