Top News

The RBI amended the Kisan Credit Card (KCC) scheme on Friday, standardizing the definition of the "crop season" to ensure uniformity in loan sanctioning and repayment schedules. The new norms will come into effect in January 2026.

The definition of the crop season has been revised to align with Income Recognition and Asset Classification (IRAC) norms. Under these changes, the crop season is standardized at twelve months for short-duration crops and eighteen months for long-duration crops. The term "crop season" encompasses the entire period from crop cultivation to harvesting and marketing.

The RBI rejected suggestions to raise the limit for collateral-free loans. The central bank noted that the limit was last increased in December 2024 and there are currently no plans for a further hike. The RBI stated that banks should waive collateral requirements and margin norms for agricultural loans (including allied activities) of up to ₹2 lakh per borrower.

Under the new rules, if a KCC loan is secured against crops or stock, banks may relax collateral requirements for loans up to ₹3 lakh. Additionally, banks are required to review and renew short-term credit limits for crop cultivation and allied activities in accordance with their internal credit policies.

Disclaimer: This content has been sourced and edited from Dainik Jagran. While we have made modifications for clarity and presentation, the original content belongs to its respective authors and website. We do not claim ownership of the content.