KCC Rules: RBI made important changes in the rules of Kisan Credit Card, will be implemented from January

RBI Changes KCC Rules: The Reserve Bank of India on Friday made important changes in the criteria of Kisan Credit Card Scheme. Under this important decision, uniformity will be brought in the programs for sanctioning and repaying loans. For this, RBI has completely made the old definition of crop season uniform. These new Commercial Bank-KCC Scheme Instructions 2026 will be applicable across the country from the month of January next year.

The central bank said that these instructions are to ensure adequate and timely loan support from the bank system. The main objective of this important change is to help the farmers engaged in farming and related activities. With this, all the important needs of the borrowers related to working capital and investment loans can be easily met. This will provide immense economic and social benefits to the entire agricultural sector and crores of farmers of the country.

New definition of crop season

The new definition of crop season has been made in strict accordance with the income recognition and asset classification rules. According to these new instructions, the duration of the crop season for short-term crops has now been fixed at 12 months. Whereas for long-term crops, this period has been increased to 18 months, which is a matter of relief for the farmers. Crop season means the entire period from sowing of the crop to its harvesting and finally marketing.

Suggestions were sought from the public

The central bank had issued its draft instructions on the revised KCC scheme in February this year. Through this, RBI had sought necessary suggestions from the general public and all concerned parties regarding this scheme. The Central Bank has outright rejected some suggestions to increase the limit of unsecured loans. The bank said that this limit has already been increased in December 2024 and there is no proposal to increase it as of now.

Rebate on mortgaging gold and silver

Farmers can voluntarily pledge their gold or silver for agricultural loans up to Rs 2 lakh. This will not at all be considered a direct violation of any guidelines related to unsecured loans in the agricultural sector. The Government of India had started the Kisan Credit Card Scheme to provide easy access to funds to the farmers. Under this, easy loans are given at very affordable interest rates for farming, animal husbandry and fish farming.

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Big benefit to farmers from the scheme

Under this important scheme, farmers are not required to mortgage their property for loans up to a fixed limit. With the help of KCC, crores of farmers of the country are able to easily fulfill all their farming needs on time. With these new rules of RBI, the loan process between banks and farmers will become even more transparent. After the implementation of these rules from January, there will be a huge improvement in the loan distribution system in the agriculture sector.