Regional Rural Banks Kisan Credit Card Scheme Directions
RBI notification RBI/FIDD/2026-27/404 · 19 Jun 2026
Official title
Reserve Bank of India [Regional Rural Banks - Kisan Credit Card (KCC) Scheme] Directions, 2026
RBI notification RBI/FIDD/2026-27/404 · 19 Jun 2026
Official title
Reserve Bank of India [Regional Rural Banks - Kisan Credit Card (KCC) Scheme] Directions, 2026
Summary
Check the official recordThe Reserve Bank of India establishes a framework for the Kisan Credit Card Scheme for Regional Rural Banks. This scheme provides a composite credit facility for working capital and investment needs in agriculture and allied activities. Eligible borrowers include individual farmers, tenant farmers, sharecroppers, and self-help groups. Banks must fix credit limits based on the Scale of Finance and specific components for post-harvest expenses, maintenance, and insurance. The facility features a six-year tenure and revolving cash credit for short-term components. Banks must waive collateral for loans up to ₹2 lakh, or up to ₹3 lakh if a recovery tie-up exists. These directions take effect on January 01, 2027, for new loans.
What you must do
Key dates
Who is affected
Thresholds
Exceptions
RBI/FIDD/2026-27/404
FIDD.CO.FSD.BC.No.06/05.05.010/2026-27
June 19, 2026
Reserve Bank of India [Regional Rural Banks - Kisan Credit Card (KCC) Scheme] Directions, 2026
Table of Contents
Chapter I: Preliminary
Chapter II: Credit - Purpose, Tenure and Limit
Chapter III: General Instructions
Chapter IV: Disclosure, Exemptions and other Provisions
Annex I - Illustrations
In exercise of the powers conferred under Section 21 and Section 35A of the Banking Regulation Act, 1949, and of all the powers enabling it in this behalf, the Reserve Bank of India, being satisfied that it is necessary and expedient in the public interest and in the interest of banking policy to do so, hereby, issues the Directions hereinafter specified.
These Directions shall be called the Reserve Bank of India [Regional Rural Banks-Kisan Credit Card (KCC) Scheme] Directions, 2026.
The Directions shall be applicable to loans sanctioned under the KCC Scheme with effect from January 01, 2027. Loans sanctioned prior to the said date shall continue to be governed by the extant guidelines till maturity / next renewal.
(1) “Crop season” means the period up to harvesting and marketing of the crops raised.
(2) “Short duration crops” shall mean crops with anticipated duration from sowing to marketing up to twelve months.
(3) “Long duration” crops mean crops which are not short duration crops. The crop season for long duration crops i.e., anticipated period from sowing to marketing is more than twelve months and up to eighteen months.
(4) For the purpose of the KCC Scheme, crop seasons shall be standardized at twelve months for short duration crops and eighteen months for long duration crops.
(5) “Marginal farmer” means a farmer with landholding of up to one hectare.
(6) “Small farmer” means a farmer with landholding of more than one hectare and up to two hectares.
(1) Short term credit requirements for cultivation of crops;
(2) Short term credit requirements for allied activities, an indicative list of which is provided in the table below:
| S.No | Allied activity | Purpose |
|---|---|---|
| (i) | Animal Husbandry | Rearing of dairy animals / poultry birds / small ruminants; illustratively, cattle, buffalo, camel, yak, mithun, goat, sheep, pig, rabbit, etc. |
| (ii) | Fisheries & Aquaculture | Rearing and capturing of fish / shrimp / other aquatic organisms illustratively fish culture, composite / integrated fish culture, polyculture, raceways fish culture, sea cage culture, cage / pen culture in reservoir, wetland fisheries, ornamental fish farming, fish angling, fish seed rearing, saline water aquaculture (shrimp / fish), shrimp culture, prawn culture, pearl culture, crab culture, seaweed cultivation, aquaponics, bio-floc fish farming, bivalve culture and brackish water culture, etc., and other production related activities concerned with inland / marine fisheries and aquaculture. |
| (iii) | Other allied activities | Production related activities concerned with sericulture, lac culture, beekeeping, and similar other allied activities. |
(3) Post-harvest / post- production expenses;
(4) Consumption requirements of farmer household;
(5) Expenses for maintenance of assets related to agriculture and allied activities, soil testing, real time weather forecasts / other technological support services and organic / good agricultural practices or similar relevant certification;
(6) Crop insurance, accident insurance, health insurance and asset insurance;
(7) Produce marketing loans; and
(8) Investment requirements for agriculture and allied activities.
The aggregate of components at (1) to (7) above shall form the short-term credit limit portion of the composite facility and the component at (8) shall constitute the long-term credit limit portion of the facility.
The short-term credit limit fixed for the sixth year together with the estimated long-term credit limit shall be the Composite Maximum Permissible Limit (CMPL) and is to be treated as the KCC limit.
Note: Refer D of illustrations 1 and 2 given in the Annex I.
(1) Farmers (individual / joint borrowers), who are owner cultivators;
(2) Tenant farmers, oral lessees, and sharecroppers; and
(3) Self-Help Groups (SHGs) and Joint Liability Groups (JLGs) of farmers / cultivators including tenant farmers, oral lessees, and sharecroppers.
(1) The drawing limit for each crop season shall be the sum total of the following:
Scale of Finance (SoF) [as notified by State Level Technical Committee (SLTC) / District Level Technical Committee (DLTC)] for the respective crop/s for the current crop season multiplied by extent of area of cultivation
10 per cent of (i) above towards post-harvest expenses and consumption requirements of household
20 per cent of (i) above towards repairs and maintenance of farm assets, soil testing, weather advisory and agri-extension service subscriptions, software and digital advisory platforms fees, drone-based crop health surveys and spraying services, remote sensing and satellite-based crop monitoring services, other technological support services, organic / good agricultural practices certification and similar other services, in the nature of working capital expenses.
Premium for crop insurance, accident insurance, health insurance and asset insurance, if any.
(2) In case the cropping pattern adopted by the farmer changes for any subsequent season, the drawing limit shall be reworked by taking into consideration the crops proposed to be grown.
(3) In situations where the SoF has not been notified by SLTC for a particular crop season, at the time of the farmer availing the loan, the bank shall consider applying a 10 per cent notional hike over the SoF applicable for the previous season and determine the drawable limit for the ensuing season. However, in cases where the SoF has been notified but not revised, banks shall adopt the existing SoF.
(4) In respect of crops not covered in the SoF finalised by the SLTC / DLTC of the respective State, loans extended shall be outside the KCC framework. However, efforts must be made to get the SoF of such crops notified by the SLTC / DLTC.