New Delhi | June 20,2026 | SKY LINK TIMES
RBI Revamps Kisan Credit Card Scheme:
The Reserve Bank of India (RBI) has announced a major overhaul of the Kisan Credit Card (KCC) framework for Rural Co-operative Banks (RCBs), introducing a new Flexi KCC facility, expanded digital banking access and enhanced support for technology-driven agricultural practices.
The revised Kisan Credit Card Scheme Directions, 2026 will apply to fresh KCC loans sanctioned by State Co-operative Banks (StCBs) and District Central Co-operative Banks (DCCBs) from January 1, 2027, with the objective of making agricultural credit more flexible, inclusive and future-ready.
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Flexi KCC for Marginal Farmers
One of the most significant reforms is the introduction of Flexi KCC, aimed specifically at marginal farmers.
Under the new facility, eligible farmers can access flexible credit limits ranging from ₹10,000 to ₹50,000. Unlike traditional credit assessments that primarily depend on landholding size, the Flexi KCC will consider a farmer’s overall requirements, including farming operations, household needs and allied agricultural activities.
The move is expected to improve access to formal credit for small and marginal farmers who often face difficulties obtaining adequate financial support.
Six-Year Composite Credit Facility
The revised framework introduces a comprehensive six-year KCC facility that brings multiple financing needs under a single credit structure.
The facility will cover crop cultivation expenses, allied agricultural activities, household consumption requirements, post-harvest expenses, insurance premiums and investment credit. It also includes financing for land development, irrigation infrastructure, farm mechanisation and livestock-related investments.
Major Push for Digital Banking
To promote financial inclusion and modern banking practices in rural areas, RBI has significantly expanded digital access under the KCC scheme.
Farmers will now be able to operate their KCC accounts through multiple digital channels, including UPI, mobile banking, internet banking, debit cards, NEFT, RTGS and Central Bank Digital Currency (CBDC), subject to customer consent.
The initiative is expected to improve convenience, reduce transaction costs and accelerate digital adoption across rural India.
Support for Technology-Driven Agriculture
Recognising the growing role of technology in farming, RBI has broadened the list of eligible activities under the KCC framework.
The revised guidelines allow financing for modern agricultural practices such as drone-based crop surveys and spraying, satellite-assisted crop monitoring, weather advisory services, soil testing, digital agriculture platforms and organic certification.
This expansion aligns agricultural credit with the evolving needs of modern and precision farming.
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Easier Access for Tenant Farmers and Sharecroppers
The RBI has also simplified eligibility requirements for tenant farmers, oral lessees and sharecroppers.
Banks can now accept certificates issued by local authorities and, in certain cases, affidavits for loans up to ₹50,000. The measure is expected to reduce documentation hurdles and improve credit accessibility for farmers who may not possess formal land ownership records.
Strengthening Rural Credit Delivery
The revised Directions continue collateral-free lending for agricultural and allied activity loans up to ₹2 lakh per borrower. Additionally, loans up to ₹3 lakh under specified crop recovery tie-up arrangements may also qualify for collateral exemptions.
According to RBI, the updated KCC framework aims to make agricultural lending more responsive, technology-oriented and inclusive while strengthening the role of Rural Co-operative Banks in meeting the changing credit requirements of India’s farming community.
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