RBI Revises Kisan Credit Card Rules: New KCC Norms on Crop Season, Loan Repayment & Collateral From January

The Reserve Bank of India (RBI) has introduced major changes to the Kisan Credit Card (KCC) Scheme by issuing fresh guidelines aimed at making agricultural credit more structured, simple and accessible for farmers. The revised directions will come into effect from January 2027 and are expected to bring greater uniformity in loan sanctioning, repayment schedules and credit support for agriculture and allied activities.

RBI Revises Kisan Credit Card Scheme: New KCC Rules on Crop Season, Loan Repayment and Collateral From January 2027

The new framework, titled the Reserve Bank of India (Commercial Banks: Kisan Credit Card Scheme) Directions, 2026, has been introduced to ensure that farmers receive adequate and timely financial assistance from the banking system through a simplified and standardised KCC facility.

RBI Standardises Crop Season Definition Under KCC Scheme

One of the most significant changes introduced by the RBI is the standardisation of the crop season definition under the Kisan Credit Card Scheme. The move has been made to align the KCC guidelines with the Income Recognition and Asset Classification (IRAC) norms followed by banks.

Under the revised rules, the crop season for short-duration crops has been fixed at 12 months, while long-duration crops will have a standard crop season period of 18 months.

A crop season refers to the entire period starting from the cultivation of a crop until its harvesting and subsequent marketing. A uniform definition is expected to help banks maintain consistency while determining loan tenure, repayment timelines and classification of agricultural loans.

Why RBI Revised the Kisan Credit Card Rules

The central bank said the revised KCC framework is intended to strengthen the availability of working capital and investment credit for farmers and borrowers involved in allied agricultural activities such as dairy, fisheries and animal husbandry.

The revised structure focuses on easier procedures, quicker access to credit and a composite loan facility that can address multiple financial requirements of eligible borrowers.

Earlier, in February 2026, the RBI had released draft guidelines on the revised KCC Scheme and sought suggestions from farmers, banks and other stakeholders before finalising the new directions.

No Increase in Collateral-Free Loan Limit for Farmers

The RBI has decided not to increase the collateral-free lending limit under the KCC Scheme at this stage. The central bank noted that the limit was already revised upward in December 2024, and therefore no further enhancement is currently being considered.

However, banks will continue to waive collateral security and margin requirements for agricultural and allied activity loans up to Rs 2 lakh per borrower.

Gold and Silver Pledge Allowed Under Certain Conditions

The RBI clarified that farmers may voluntarily pledge gold or silver as security for agricultural loans even within the collateral-free loan limit. Such voluntary pledging will not be treated as a violation of the existing guidelines that allow collateral-free lending to the agriculture sector.