The Kisan Credit Card (KCC) scheme, one of India’s most important farmer credit programmes, is set for significant transformation as authorities prepare new rules and guidelines to make agricultural lending more flexible, effective and aligned with modern farming needs.

1. Why Are Changes Being Proposed in the KCC Scheme?

The Reserve bank of India (RBI) has reviewed the existing KCC framework and issued draft directions to revamp the scheme, inviting public feedback by 6 March 2026. These proposed revisions aim to:
✔ Expand coverage of credit to more farmers
✔ Simplify procedural norms for banks and borrowers
✔ Align loans better with how farming really works today
✔ Include broader activities beyond traditional crop credit
✔ Encourage technology adoption in agriculture

These updates are part of an effort to modernise the scheme and make access to farm finance more efficient and farmer‑friendly.

2. Key Proposed Changes in Kisan Credit Card Rules

📌 a) Standardising Crop Seasons

Under the draft framework, the RBI proposes standard definitions for crop seasons across the country:

• Short‑duration crops: 12‑month cycle
• Long‑duration crops: 18‑month cycle

This helps in designing uniform loan sanction and repayment schedules for farming activities.

📌 b) Extended Loan Tenure

One of the biggest proposed changes is to extend the KCC loan tenure to up to six years.
This change is especially helpful for farmers growing crops with longer harvest cycles, where the traditional one‑year repayment period may not fit actual farming income timelines.

📌 c) Loan Limits Aligned with Actual Costs

Instead of generic limits, the draft recommends that drawing limits under KCC be linked to the Scale of Finance — meaning farmers will get credit that more accurately reflects the actual cost of cultivation for their crop cycle.

📌 d) technology and Modern Farming Expenses Included

Under the updated guidelines, expenses related to modern farming techniques — such as soil testing, real‑time weather information, certification for organic or good agricultural practices — will be included as eligible uses under the additional 20% category normally allowed for repairs and maintenance of farm assets.

This expands the scope of KCC beyond traditional purposes and supports technology‑driven agriculture.

📌 e) Expanded Coverage for Allied Activities

The updated structure aims to broaden KCC coverage to include agricultural allied activities such as animal husbandry, dairy, fisheries and other rural economic activities under a unified framework, improving access for a wider section of farmers.

3. What Else Could Be Different Under the New KCC Rules?

🟢 Faster and Digitised Loan Processing

States like Uttar Pradesh have reported that wallet PLATFORM' target='_blank' title='digital-Latest Updates, Photos, Videos are a click away, CLICK NOW'>digital governance reforms (e‑KCC) are helping farmers get loans in as little as 5 minutes instead of weeks, making credit quicker and more accessible.

🟢 Broader bank Participation

The proposed draft guidelines apply to many banking segments — including commercial banks, small finance banks, regional rural banks, and rural co‑operative banks — meaning more institutions could participate actively in KCC lending.

🟢 Digital currency Integration (CBDC)

Recent developments indicate that CBDC (Central bank wallet PLATFORM' target='_blank' title='digital-Latest Updates, Photos, Videos are a click away, CLICK NOW'>digital Currency) loans might soon be available under the KCC scheme, which can enhance transparency, reduce fraud and improve the speed of credit disbursal and repayment tracking.

4. How These Changes Benefit Farmers

Here’s what these reforms could mean for farmers:

✔ Longer repayment periods aligned with actual crop cycles
✔ More accurate credit limits tied to true cultivation costs
✔ Expanded usage of funds for modern farming tools, tech and certification
✔ Faster loan approvals and processing through wallet PLATFORM' target='_blank' title='digital-Latest Updates, Photos, Videos are a click away, CLICK NOW'>digital systems
✔ Greater inclusion of allied activities beyond just crop credit
✔ Potential financial innovation with wallet PLATFORM' target='_blank' title='digital-Latest Updates, Photos, Videos are a click away, CLICK NOW'>digital currency integration

These changes aim to make farm finance more accessible, affordable, and appropriate to real agricultural needs in India.

5. What Happens Next?

As of now, these revised guidelines are in draft form, and the RBI is seeking feedback from stakeholders and the public until 6 March 2026. After reviewing comments, the RBI will finalise and issue the updated KCC rules, after which banks will implement them operationally.

Conclusion

Major changes are underway for the Kisan Credit Card scheme with the goal of making farm credit more flexible, relevant, and accessible to a wider group of farmers. The key proposals include longer loan tenures, standardised crop seasons, aligned credit limits, inclusion of modern farming costs, broader bank participation, and potential wallet PLATFORM' target='_blank' title='digital-Latest Updates, Photos, Videos are a click away, CLICK NOW'>digital enhancements like CBDC‑linked loans. Once finalised, these reforms could transform agricultural financing and support stronger rural economic growth across India.

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