Small Finance Banks Kisan Credit Card Scheme Directions 2026 · RBI/FIDD/2026-27/403

RBI/FIDD/2026-27/403 FIDD.CO.FSD.BC.No.05/05.05.010/2026-27 June 19, 2026

Reserve Bank of India [Small Finance 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 Repeal Provisions Annex I - Illustrations Appendix

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.

Chapter I: Preliminary

A. Short Title and Commencement

1. These Directions shall be called the Reserve Bank of India [Small Finance Banks - Kisan Credit Card (KCC) Scheme] Directions, 2026.

2. 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.

B. Objective

3. These Directions are issued with a view to laying down the framework for adequate and timely credit support from the banking system to be provided under the KCC Scheme to meet the working capital and investment credit needs of borrowers engaged in agriculture and allied activities, through a composite facility, requiring simple and standard procedure.

C. Applicability

4. These Directions shall be applicable to Small Finance Banks, (hereinafter collectively referred to as ‘banks’ and individually as a ‘bank’)

D. Definitions/Clarifications

5. 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.

6. 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.

Chapter II: Credit - Purpose, Tenure and Limit

E. Purpose and Tenure

7. Under the KCC Scheme, banks shall extend credit to eligible borrowers for their farming and other needs as indicated below in the form of a composite facility with a tenure of six years:

• (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:

• (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.

8. 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.

9. 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.

10. The short-term component of the KCC limit for the purposes of crop cultivation and allied activities shall be in the nature of revolving cash credit facility. There shall be no restriction on the number of debits and credits.

F. Working capital for cultivation of crops

11. Eligibility

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.

12. Fixation of Drawing Limit

• (1) The drawing limit for each crop season shall be the sum total of the following:
  • (i) 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
  • (ii) 10 per cent of (i) above towards post-harvest expenses and consumption requirements of household
  • (iii) 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.
  • (iv) 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.
• (5) The KCC credit limit shall be rounded off to the nearest ₹1,000.
• (6) At the time of sanction, the maximum permissible limit (MPL) for the short-term crop loan shall be arrived at on a notional basis by adding 10 per cent to the limit of the previous crop season, from the second crop season onwards. In case the drawing limit exceeds the MPL in any crop season / year, the MPL shall be reassessed at the time of review.