The Reserve Bank of India (RBI) has amended the norms of Kisan Credit Card (KCC) Scheme. Under this, the definition of crop season has been made uniform in order to bring uniformity in the loan sanctioning and repayment programs. RBI (Commercial Banks KCC Scheme) Instructions 2026 will come into effect from January next year. The central bank said that these instructions are being issued to prepare a framework for adequate and timely credit support from the bank system under the KCC scheme. Its objective is to meet the working capital and investment loan requirements of borrowers engaged in farming and allied activities.
RBI made changes
The definition of crop season has been revised to conform with Income Recognition and Asset Classification (IRAC) rules. According to the instructions, for the purpose of KCC scheme, the duration of crop season will be fixed at 12 months for short term crops and 18 months for long term crops. Crop season refers to the period from sowing of the crop to its harvesting and marketing.
Limit not increased
In February, the central bank had issued draft instructions on the revised KCC scheme and sought suggestions from the general public and concerned parties. Rejecting the suggestions regarding increasing the limit of unsecured loans, RBI said that this limit has already been increased in December 2024 and at present there is no proposal to increase it further. However, voluntarily pledging gold or silver for agricultural loans up to Rs 2 lakh will not be considered a violation of the guidelines related to unsecured loans in the agriculture sector.
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