 issued the final revised Kisan Credit Card (KCC) framework.jpg)
Reserve Bank of India (RBI) issued the
final revised Kisan Credit Card (KCC) framework
¨
Reserve Bank of India
(RBI) issued the final revised Kisan Credit Card (KCC) framework on 19 June
2026.
¨
The revised directions
will come into effect from 1 January 2027.
¨
The framework was
finalised after public consultations on the draft directions issued in February
2026.
¨
The Kisan Credit Card
(KCC) Scheme provides short-term institutional credit to farmers and borrowers
engaged in agriculture and allied activities.
¨
The scheme aims to
provide timely credit for crop production, post-harvest expenses, and working
capital requirements.
¨
These crop season norms
are aligned with the Income Recognition and Asset Classification (IRAC) norms
used by banks.
¨
Banks will continue to
waive collateral security and margin requirements for agricultural and allied
activity loans up to ₹2 lakh per borrower.
¨
Voluntary pledging of
gold or silver as collateral for agricultural loans up to the ₹2 lakh
collateral-free limit will not be treated as a violation of collateral-free
lending guidelines.
¨
For KCC loans above ₹2
lakh, banks will determine collateral and margin requirements according to
their credit policies and RBI guidelines.
¨
The RBI did not approve
the proposal to increase the ₹2 lakh collateral-free lending limit, which was
last revised in December 2024.
¨ Marginal farmers owning up to one hectare of land will be eligible for a flexible credit limit of ₹10,000 to ₹50,000.
¨ The credit limit will be based on the bank's assessment and will not depend on the value of the land.
