Reserve Bank of India (RBI) Revises Kisan Credit Card (KCC) Scheme Norms

Key facts

• The Reserve Bank of India (RBI) issued the [Commercial Banks - Kisan Credit Card (KCC) Scheme] Directions, 2026, which will be effective from January 2027.
• The RBI has standardised the definition of crop seasons at twelve months for short duration crops and eighteen months for long duration crops to align with Income Recognition and Asset Classification (IRAC) norms.
• Banks are required to waive collateral security and margin requirements for agricultural and allied activity loans up to ₹2 lakh per borrower.
• The RBI allows the voluntary pledge of gold and silver as collateral for agriculture loans up to the ₹2 lakh limit without violating collateral-free lending guidelines.
• For KCC loans involving hypothecation of crops or stock with tie-up arrangements for recovery, banks may waive collateral security for amounts up to ₹3 lakh.