RBI Plans Kisan Credit Card Scheme Overhaul To Expand & Improve Farm Credit Access

ENA Sectors 2026-02-09 16:38:52 New Delhi, Feb 9 (KNN) The Reserve Bank of India (RBI) has proposed a comprehensive overhaul of the Kisan Credit Card (KCC) scheme to expand its coverage, simplify operations and better align it with the changing credit needs of agriculture and allied sectors. As part of its developmental and regulatory policy measures announced after the latest Monetary Policy Committee (MPC) meeting, the RBI said it has completed a detailed review of the KCC scheme. The review focuses on widening access, streamlining procedures and addressing emerging requirements in farming and allied activities. The central bank plans to issue revised instructions to banks, consolidating all existing KCC guidelines into a single, updated framework applicable to agriculture and allied sectors. Key Proposed Changes Among the proposed reforms is the standardisation of crop seasons across regions to ensure uniformity in credit assessment and repayment schedules. The RBI has also proposed extending the overall tenure of KCC facilities to six years, offering farmers a longer and more stable credit relationship with banks. The drawing limit under KCC will be aligned with the Scale of Finance (SoF) for each crop season, linking credit limits more closely to actual cultivation costs. In addition, eligible purposes under the scheme will be expanded to include expenses on technological interventions, such as modern equipment and agri-tech solutions. The RBI said draft guidelines incorporating these changes will be issued shortly. (KNN Bureau) 45079 https://knnindia.co.in/news/newsdetails/sectors/rbi-plans-kisan-credit-card-scheme-overhaul-to-expand-improve-farm-credit-access 2026-02-09 16:38:52 knnindia.co.in RBI Plans Kisan Credit Card Scheme Overhaul To Expand & Improve Farm Credit Access