The Reserve Bank of India (RBI) has issued the revised Kisan Credit Card (KCC) Scheme Directions, 2026 for Rural Co-operative Banks (RCBs), introducing Flexi KCC, expanded digital banking access and support for technology-driven farming practices to strengthen agricultural credit delivery.
The new Directions will apply to fresh KCC loans sanctioned by State Co-operative Banks (StCBs) and District Central Co-operative Banks (DCCBs) from January 1, 2027.
A key feature of the revised framework is the introduction of Flexi KCC for marginal farmers. Under the facility, eligible farmers can avail flexible credit limits ranging from Rs 10,000 to Rs 50,000 based on the bank’s assessment of their farming, household and allied activity requirements, rather than the value of landholding.
Another major reform is the introduction of a six-year composite KCC facility that combines crop cultivation, allied activities, household consumption needs, post-harvest expenses, insurance premiums and investment credit under a single umbrella. The framework also integrates financing for activities such as land development, irrigation, farm equipment and livestock purchase.
RBI has also significantly expanded digital access under the KCC scheme. Farmers will be able to operate KCC accounts through UPI, mobile banking, internet banking, debit cards, NEFT, RTGS and Central Bank Digital Currency (CBDC), subject to customer consent. The move is expected to enhance financial inclusion and promote seamless digital transactions in rural areas.
The revised Directions broaden the scope of eligible activities by including expenses related to modern agricultural practices such as drone-based crop surveys and spraying, satellite-based crop monitoring, weather advisory services, soil testing, digital agriculture platforms and organic certification.
To improve credit access, RBI has simplified eligibility norms 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 Rs 50,000, reducing documentation requirements.
The revised framework also covers produce marketing loans and facilitates warehouse receipt-linked financing, enabling farmers to access credit against stored produce and improve post-harvest liquidity.
The Directions continue collateral-free lending support for agricultural and allied activity loans up to Rs 2 lakh per borrower, while loans up to Rs 3 lakh under certain crop recovery tie-up arrangements may also be exempt from collateral requirements.
According to RBI, the revised framework aims to make the KCC scheme more flexible, inclusive and technology-oriented while strengthening the role of Rural Co-operative Banks in meeting the evolving credit needs of farmers.
