Draft Revised Kisan Credit Card (KCC) Guidelines
RBI Invites Public Comments on Draft Revised Kisan Credit Card (KCC) Guidelines
In its Statement on Developmental and Regulatory Policies dated February 6, 2026, the Reserve Bank of India (RBI) announced its intention to issue updated Kisan Credit Card (KCC) guidelines. The objective is to merge existing instructions relating to agriculture and allied activities, widen the scheme’s reach, simplify operations, and respond to evolving needs in the sector.
Accordingly, draft directions for the KCC Scheme have been released for the following institutions:
- Commercial Banks
- Small Finance Banks
- Regional Rural Banks
- Rural Co-operative Banks
Key proposals in the draft guidelines include:
- Standardized crop cycles: Crop seasons are proposed to be defined uniformly by duration — up to 12 months for short-term crops and up to 18 months for long-term crops — to align sanction and repayment timelines.
- Longer KCC validity: The overall KCC tenure is proposed to be extended to six years, helping match loan periods with longer crop cycles.
- Drawing limits linked to scale of finance: Credit limits would be tied to the officially determined scale of finance for each crop season to better reflect actual cultivation costs.
- Support for modern practices: Expenses on technology and improved farming practices — such as soil testing, weather advisory tools, and organic or good-practice certifications — are proposed to be covered within the existing 20% additional component for farm asset maintenance and related needs.
How to submit feedback
RBI has invited comments from regulated entities, stakeholders, and the public until March 6, 2026. Feedback can be shared:
- Through the Connect 2 Regulate section on the RBI website using the relevant document links; or
- By email, mentioning “Feedback on [full name of the draft Amendment Directions and type of Regulated Entity]” in the subject line.
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