The Reserve Bank of India (RBI) has released a new plan to update the Kisan Credit Card (KCC). Specifically, these changes aim to help farmers get more money and more time to pay it back. Therefore, it is important for all cardholders to understand these new rules. Currently, the RBI is asking the public for feedback on these ideas until March 6, 2026.
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1. Longer Loan Tenure
The most significant change is the extension of the loan period. Specifically, the RBI wants to increase the KCC tenure to six years. Previously, the validity was shorter. Therefore, this change gives farmers more breathing space to manage their debts. Actually, a longer term helps reduce the stress of repaying loans during a bad harvest year.
2. Standard Crop Cycles
The RBI also wants to fix how we define crop seasons. Specifically, it proposes a 12-month cycle for short crops like wheat. Meanwhile, long crops like sugarcane will get an 18-month cycle. Therefore, every bank in India will follow the same timing for loan repayments. In fact, this move brings much-needed uniformity to the rural banking system.
3. Credit Linked to Actual Costs
Under the new rules, loan limits will match the real cost of farming. Specifically, banks must look at the current price of seeds and labor in your area. Therefore, you will get enough cash to cover your full costs instead of an outdated fixed amount. Now, this ensures that farmers do not have to borrow from private moneylenders at high rates.
4. Loans for New Technology
Finally, the RBI is adding tech-related costs to the KCC scheme. Specifically, you can now use your loan for soil testing and weather alerts. Also, the cost of getting organic farming certificates is now covered. Therefore, you can use modern tools to grow better crops without paying from your own pocket. Actually, these expenses fit within the existing 20% limit for farm maintenance.
Quick Summary of Proposed Changes
| Feature | Current Rule | Proposed Rule (2026) |
| Loan Tenure | Usually 5 Years | 6 Years |
| Short Crops | Varies by Bank | 12-Month Cycle |
| Long Crops | Varies by Bank | 18-Month Cycle |
| Tech Costs | Not Included | Included (Soil testing, etc.) |
| Credit Limit | Standard Amount | Linked to Actual Local Costs |
What’s Next
First, check with your local bank to see if they are running the pilot for e-Rupee or UPI-based KCC payments. Then, prepare your feedback for the RBI if you have suggestions for further improvement. Since the draft is open until March, you should stay tuned for the final notification expected in April 2026, officials said.
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