The Reserve Bank of India has issued revised draft guidelines for the Kisan Credit Card (KCC) scheme, proposing to include expenses on agricultural technology initiatives such as soil testing, weather forecasting, and organic certification within eligible farm loan components.
The draft allows for the waiver of collateral and margin requirements for agricultural and allied loans up to 2 lakh rupees per borrower. Credit limits under the KCC scheme have been aligned with the crop-specific financing scale, while a flexible credit limit of 10,000-50,000 rupees has been proposed for marginal farmers holding up to one hectare.
The RBI has standardized crop tenures at 12 months for short-duration crops and 18 months for long-duration crops, and has extended the validity of the KCC to six years. Feedback on the draft can be submitted by March 6, 2026.
