RBI Proposes Revised KCC Guidelines

• 13 Feb 2026

On 12th February 2026, the Reserve Bank of India released draft revised guidelines for the Kisan Credit Card (KCC) scheme to expand coverage, standardise operations and better align farm credit with crop cycles and cultivation costs.

Key Points

• Revised Policy Framework: The draft Master Directions consolidate existing guidelines on agriculture and allied activities and will apply to Commercial Banks, Small Finance Banks, Regional Rural Banks and Rural Co-operative Banks.
• Standardised Crop Cycles: Crop seasons have been standardised for uniformity, with short-duration crops treated as 12-month cycles and long-duration crops as 18-month cycles for loan planning and repayment.
• Extended Loan Tenure: The overall tenure of KCC loans has been increased to 6 years to better match credit availability with longer crop production cycles.
• Alignment With Cultivation Costs: Drawing limits under the scheme will now be linked with the scale of finance for each crop season to ensure farmers receive credit based on actual input costs.
• Improved Credit Planning: The revised framework aims to streamline loan sanction and repayment schedules by aligning them more closely with agricultural timelines.
• Expanded Coverage Goal: The proposed changes are intended to strengthen agricultural financing by making credit access more responsive to farmers’ evolving needs.