Rural Co-operative Banks Kisan Credit Card Scheme Directions
RBI notification RBI/FIDD/2026-27/405 · 19 Jun 2026
Official title
Reserve Bank of India [Rural Co-operative Banks - Kisan Credit Card (KCC) Scheme] Directions, 2026
RBI notification RBI/FIDD/2026-27/405 · 19 Jun 2026
Official title
Reserve Bank of India [Rural Co-operative Banks - Kisan Credit Card (KCC) Scheme] Directions, 2026
Summary
Check the official recordThe Reserve Bank of India establishes a framework for Rural Co-operative Banks to provide Kisan Credit Card facilities. This scheme supports working capital and investment credit for agriculture and allied activities through a composite facility. Eligible borrowers include individual farmers, tenant farmers, sharecroppers, and self-help groups. Banks fix credit limits based on the Scale of Finance and specific cost components. The facility includes a six-year tenure for term loans and a revolving cash credit for working capital. Banks monitor end-use and follow specific collateral-free thresholds. These directions apply to all loans sanctioned under the KCC Scheme starting January 01, 2027. Existing loans remain under previous guidelines until maturity or renewal.
What you must do
Key dates
Who is affected
Thresholds
Exceptions
RBI/FIDD/2026-27/405 FIDD.CO.FSD.BC.No.07/05.05.010/2026-27 June 19, 2026
Reserve Bank of India [Rural Co-operative 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 read with section 56 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.
In this context, ‘Rural Co-operative Banks’ shall mean State Co-operative Banks (StCBs) and Central Co-operative Banks (CCBs), as defined in the National Bank for Agriculture and Rural Development Act, 1981.
For the purpose of these Directions, unless the context or subject otherwise requires, the terms herein shall bear the meanings assigned to them as given below: (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.
Words and expressions used herein and not defined in these Directions, but defined in the Reserve Bank of India Act, 1934, or the Banking Regulation Act, 1949, shall have the meanings assigned to them in those Acts.
| 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.
The following shall be eligible to avail credit for working capital requirements for cultivation of crops: (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.
(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.