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Informist, Friday, Jun. 19, 2026

--RBI releases revised directions for kisan credit card scheme 

NEW DELHI – The Reserve Bank of India Friday released the final directions for the revised kisan credit card scheme, with the new norms set to be implemented from Jan. 1. With the revised directions, the central bank aims to expand coverage, streamline operational aspects, and address emerging requirements of the kisan credit card scheme.

"These directions are issued with a view to laying down the framework for adequate and timely credit support from the banking system to be provided under the KCC (kisan credit card) Scheme to meet the working capital and investment credit needs of borrowers engaged in agriculture and allied activities, through a composite facility, requiring simple and standard procedure," the RBI said. 

Considering operational and implementation challenges at the field level, the kisan credit card loans sanctioned prior to Jan. 1, 2027, will continue to be governed by the existing scheme guidelines till maturity or next renewal, the RBI said. In the revised guidelines, the crop season--the period up to harvesting and marketing of the crops raised--has been standardised at 12 months for 'short duration crops' and 18 months for 'long duration crops', the RBI said.

The RBI has extended the tenure of the kisan credit card to six years from five years earlier. The term-loan component under the kisan credit card will be repayable within a period of six years depending on the type of activity or investment, as per the bank's credit policy applicable for investment credit, the central bank said. 

"If the nature of investment involves a tenure longer than six years, the term loan may be treated as a separate facility outside the KCC framework," the RBI said.

The central bank said that banks will have to waive collateral security and margin requirements for agricultural loans including loans for allied activities up to INR 200,000 per borrower. "However, the voluntary pledge of gold and silver as collateral for agriculture loans up to the collateral-free limit will not be considered as a violation of the guidelines on collateral-free lending to the agriculture sector," the RBI said. "Banks shall obtain and retain explicit declaration from the borrower in such cases."

Banks will decide the collateral security and margin requirements for loans above INR 200,000 as per their credit policy and in adherence with RBI guidelines issued from time to time, the central bank said. 

The RBI has allowed marginal farmers to be eligible for a flexible credit card limit of INR 10,000 to INR 50,000, as per assessment of the bank without relating it to the value of the land. "The credit limit shall be based on crops grown, post-harvest warehouse storage related credit needs, other farm expenses, consumption needs and investment requirements for agriculture and allied activities," the RBI said.  End

Reported by Shubham Rana

Edited by Akul Nishant Akhoury

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