Read, Digital Desk : Loans given by the government on this credit card, now RBI has made new changes The Reserve Bank of India (RBI) has made changes in the rules of Kisan Credit Card (KCC) scheme. RBI has changed the rules for identifying the crop season to unify it, which will apply to loan sanctioning and repayment deadlines. RBI (Commercial Banks – KCC Scheme) Directions 2026 will come into force from next year i.e.
January 2026.
In a press release, the RBI said that these directions are being issued for providing adequate and timely credit to agriculture and allied activities by the banking system under KCC scheme to enable them to meet the working capital and investment credit requirements of the borrowers engaged in these activities.
Change in definition of crop season RBI has changed the definition of crop season according to Income Recognition and Asset Classification (IRAC) norms. The RBI said that for the purpose of KCC scheme, a crop season means the duration between sowing, harvesting and marketing of a crop which can be 12 months for a short term crop and 18 months for long term crops. Draft guidelines for the revised KCC scheme were issued by the RBI in February to elicit public comments and stakeholder views.
While rejecting the suggestions to increase the unsecured loan limit to agricultural credit, the RBI said the limit had already been enhanced through December 2024, and there is no current proposal for an upward revision.
Although voluntarily furnishing collateral in the form of gold or silver, to secure agriculture loan of up to Rs 2 lakh for agricultural and allied activities, may not be in contravention of the guidelines regarding unsecured credit to agriculture. Eligible beneficiaries for Kisan Credit Card All individual farmers and joint borrowers who are owner-cultivators; Self-Help Groups (SHGs) and Joint Liability Groups (JLGs), which are groups consisting of tenant farmers and share croppers; and Tenant farmers, oral lessees and share croppers. Meanwhile, the central government had also increased the limit of Kisan Credit Card (KCC) loan from April 1, 2025-26. In this, crop loan limit has been increased from 3 lakh to 5 lakh, and fisheries and allied sector loan limit has been increased from 2 lakh to 5 lakh.
Short-term agriculture loans up to Rs 3 lakh are being provided at 7% interest.
Due to a further incentive of 3% interest for timely repayment, the cost of borrowing comes down to 4% in that regard.
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