RBI has issued draft revised Master Directions for the Kisan Credit Card (KCC) Scheme on February 12, 2026, proposing a six-year tenure, standardized crop durations, aligned drawing limits, and inclusion of technology-related expenses.
RBI Draft Revised KCC Guidelines – February 12, 2026
In terms of its Statement on Developmental and Regulatory Policies dated February 06, 2026, the Reserve Bank of India (RBI) has released draft consolidated guidelines for the Kisan Credit Card (KCC) Scheme on February 12, 2026. The draft Directions seek to streamline agricultural credit, expand coverage, and update operational norms in line with current farming practices.
The Directions are open for public consultation.
Applicability
The revised KCC framework will apply to:
- Commercial Banks
- Small Finance Banks
- Regional Rural Banks (RRBs)
- Rural Co-operative Banks
This ensures uniform implementation across agricultural lending institutions.
Key Changes Proposed
1. Standardized Crop Durations
Crop seasons have been standardized to align loan structuring with cultivation cycles:
- Short duration crops: 12 months
- Long duration crops: 18 months
This simplifies repayment scheduling and sanction timelines.
2. Six-Year KCC Tenure
The overall KCC tenure has been extended to six years, aligning financing with longer crop cycles and reducing the need for frequent renewals.
3. Drawing Limits Linked to Scale of Finance
Drawing limits will now be aligned with the approved scale of finance for each crop season. This ensures credit reflects actual cultivation costs and reduces under-financing.
4. Inclusion of Technology and Certification Costs
Technology and certification expenses are now eligible within KCC limits, including:
- Soil testing
- Weather forecast services
- Organic farming certification
- Good Agricultural Practices (GAP) certification
These costs will be accommodated within the existing 20% additional component permitted for farm asset maintenance.
Public Consultation
RBI has invited comments until March 6, 2026. Feedback may be submitted through:
- The “Connect 2 Regulate” section on the RBI website; or
- Email with the prescribed subject line referencing the draft Directions.
Key Points
- Draft consolidated Master Directions issued for the KCC Scheme.
- Crop durations standardized to 12 and 18 months.
- Tenure extended to six years.
- Drawing limits aligned with scale of finance.
- Technology-related expenses included.
- Comments invited until March 6, 2026.
Conclusion
The draft revised KCC framework modernizes agricultural credit delivery by aligning tenure, crop cycles, and financing limits with practical farming requirements. The final guidelines will reflect stakeholder feedback received during the consultation period.
Source: RBI Press Release dated 12/02/2026 on Revised Kisan Credit Card (KCC) Scheme