Kisan Credit Card Scheme To Be Revised? Rbi Issues Draft Directions

The Reserve Bank of India (RBI) on February 12, 2026, issued draft directions on revision and consolidation of guidelines on the Kisan Credit Card (KCC) scheme specifying what changes are proposed, which institutions they are applicable to, when to give comments and how stakeholders can give comments. The move is on the lines of an announcement made by Governor Sanjay Malhotra at the Monetary Policy Committee (MPC) meeting in February 2026, and aims to expand coverage, simplify operations and catch up with emerging requirements in the agriculture sector.

The directions include commercial banks, small finance banks, regional rural banks, and rural co-operative banks. Comments from regulated entities, members of the public and other stakeholders have been invited till 6th March, 2026, through the RBI website or through e-mail.

Standardisation of Crop Seasons

One of the important proposals is to have uniformity in the loan sanction and repayment schedule by standardising crop seasons in terms of duration. Short-duration crops have been defined with a 12-month cycle, while long-duration crops have been fixed at 18 months. The measure seeks to align credit timelines more closely with cultivation cycles and reduce variations in repayment structuring across banks.

KCC Tenure Increased To Six Years

To ensure that the duration of loan tenure matches the crop cycle, especially in case of longer duration crops, the tenure of the Kisan Credit Card has been proposed to be increased to six years. The extension is aimed at interlinking the validity of the credit facility with the production cycles and to provide continuity over several cultivation seasons.

Drawing Limits Linked to Scale of Finance

The draft also proposes to bring the drawing limits under KCC at par with the scale of finance of each crop season. The scale of finance is a measure of the estimated cost of cultivating certain crops and regions. Linking drawing limitations to this benchmark is supposed to make sure that permitted credit reflects actual expenses of inputs and cultivation.

Expenses Related to Technological Interventions

Expenses related to technological measures, such as soil testing, real-time weather forecasts, and certification for organic or good agricultural practises have been proposed to be included as eligible components. These will be covered within the existing additional component of 20 per cent allowed towards repairs and maintenance of farm assets.

Eligibility of the Kisan Credit Card scheme

The Kisan Credit Card scheme provides short-term working capital for crop cultivation and allied activities, such as dairy, poultry, fisheries, and animal husbandry. It is designed to cover expenses on seeds, fertilisers, pesticides, labour, post-harvest costs, and certain consumption needs within prescribed limits.

The eligible applicants include individual farmers and joint borrowers who are owner-cultivators. Tenant farmers, sharecroppers, and oral lessees are also eligible. Self-help groups and Joint Liability Groups engaged in agriculture and allied activities can apply. The eligible age group is 18 to 65, subject to bank assessment norms.

The Interest Subvention Scheme (ISS), specifically the Modified Interest Subvention Scheme (MISS), offers farmers concessional short-term crop loans of up to Rs 3 lakh at 7 per cent interest, with an additional 3 per cent incentive for timely repayment (effective rate of 4 per cent). All KCC-registered farmers seeking cultivation and post-harvest loans can apply for this.

How To Avail a Kisan Credit Card

Eligible farmers can apply both online and offline. Online applications can be made from the official websites of the participating banks or the JanSamarth portal. Applicants are required to choose the Kisan Credit Card option and fill in their personal details, land details, upload the required documents, and submit the application.

Offline applications can be made by visiting the nearest branch of a commercial bank, regional rural bank, or cooperative bank offering the facility, and submitting a filled application form with supporting documents.

Documents which are generally required are a completed application form, proof of identity (Aadhaar card, PAN card or voter ID), proof of address, proof of landholding certified by revenue authorities, and passport-size photographs.

Loan limits and security requirements differ. For loans ranging from Rs 1.60 lakh to Rs 3 lakh, banks normally require only hypothecation of crops (where a farmer pledges their future crops as collateral) as a necessary security, without asking for any other collateral. Most of the time, collaterals and margin fees are waived off by banks for loans below Rs 3 lakh.

For limits above Rs 3 lakh, collateral or security documents are allowed by the bank as per their individual norms. Banks may also ask for a Third-Party Guarantee (TPG) in these cases.

KCC general has a validity of 5 years, subject to annual review. Once approved, the bank issues the card, which often comes in the form of a RuPay-enabled card, which allows farmers to withdraw funds within the sanctioned limit for cultivation and related needs.