Government SchemesArticle 9 of 13

RBI revamps Kisan Credit Card scheme, standardises crop-season definition

Friday, 19 June 2026· 5 min read·Source: The Economic Times

The Reserve Bank of India (RBI) has revamped the Kisan Credit Card (KCC) Scheme, issuing revised directions that standardise the definition of crop seasons for uniform sanction and repayment of farm loans. Reported on June 19, 2026 and set to take effect from January, the new norms require banks to provide collateral-free agricultural loans up to ₹2 lakh (with exceptions for voluntary gold/silver pledges), while for loans above ₹2 lakh banks will fix collateral as per their own policy. The move aims to streamline credit support for agriculture and allied activities and bring consistency across lenders.

Key Facts & Details

8 points

1
The RBI revised the Kisan Credit Card (KCC) Scheme framework, reported on June 19, 2026.
2
Crop-season definitions are being standardised for uniform loan sanction and repayment.
3
Banks must offer collateral-free agriculture loans up to ₹2 lakh, with voluntary gold/silver pledge as an exception.
4
For loans above ₹2 lakh, collateral will be set per each bank's policy.
5
The revised directions are to take effect from January and cover agriculture and allied activities.

Deep Dive

+
The KCC gives farmers short-term, flexible credit for cultivation and allied needs at concessional rates.
+
Standardised crop-season definitions reduce disputes over loan tenure and repayment timing.
+
KCC is part of India's priority sector lending and financial-inclusion architecture.

Exam Focus

Up to what loan amount must banks offer collateral-free credit under the revised RBI Kisan Credit Card norms?

Exam Relevance & Angle

The Kisan Credit Card sits at the intersection of banking, agriculture credit and financial inclusion — all high-frequency areas for SBI/IBPS PO and Clerk, RBI and NABARD exams, where the collateral-free ₹2 lakh limit is a commonly tested fact.

Target Exams

SBI POSBI ClerkIBPS POIBPS ClerkIBPS RRB OfficerIBPS RRB AssistantRBI Grade BRBI AssistantNABARD Grade AUPSC CSEState PCS

Background & Context

The Kisan Credit Card (KCC) Scheme was introduced in 1998 to give farmers timely and affordable short-term credit for crops, post-harvest needs and allied activities such as dairy and fisheries, replacing cumbersome loan procedures with a single revolving credit limit. It is delivered through commercial banks, regional rural banks and cooperative banks, and is linked to the Modified Interest Subvention Scheme that lowers the effective interest rate for prompt repayment. The RBI, as the banking regulator, periodically updates KCC guidelines, while NABARD supports the rural-credit framework. Collateral-free norms and crop-season definitions directly affect how easily small and marginal farmers can access institutional credit.