Big development in rural finance
The Reserve Bank of India (RBI) has issued draft directions to revamp the Kisan Credit Card (KCC) scheme, inviting public and stakeholder comments until March 6.
This signals a potential update to one of India’s most important agricultural credit programs.
What’s Happening?
The RBI has released proposed revisions aimed at modernising and strengthening the Kisan Credit Card (KCC) framework.
Draft guidelines have been published
Banks, stakeholders, and the public can submit feedback
Final rules will be notified after reviewing comments
This is part of a broader push to make agricultural lending more efficient, transparent, and digitally aligned.
What Is the Kisan Credit Card (KCC)?
The KCC scheme provides:
Short-term crop loans
Working capital for farmers
Flexible repayment options
Access to subsidised interest rates
It is widely used by farmers for purchasing seeds, fertilisers, equipment, and meeting seasonal credit needs.
Why Is RBI Revising It?
Possible goals of the revamp include:
Better digitisation & monitoring
Stronger credit discipline
Improved risk management for banks
Wider access for eligible farmers
Streamlined operational guidelines
The update could reshape how banks issue and manage KCC loans.
Important Timeline
Draft issued: February 2026
Comments invited till: March 6, 2026
Final directions: Expected after review of stakeholder feedback