KCC New Rules: The Reserve Bank of India (RBI) has announced some important amendments to the rules of the Kisan Credit Card (KCC) scheme. The main objective of these new changes is to make the definition of crop season more clear and uniform, so that the process of loan approval and disbursement is uniform across the country. This new RBI guideline will be fully implemented from January 2026.

What is the new definition of crop season?

RBI has set a new and clear definition for crop season keeping in view the Income Recognition and Asset Classification (IRAC) norms. According to these new rules, the season duration for short duration crops will be considered as 12 months. The season duration for long term crops is fixed at 18 months. This period will include all the time from sowing the crop to its harvesting and sale in the market.

No change in unsecured agricultural loan limit

Farmers and agricultural organizations have been demanding an increase in the limit of non-guaranteed agricultural loans, but the RBI has not yet accepted it. The central bank has clarified that this limit was raised only in December 2024, so there is no plan to change it further for now.

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However, RBI has issued strict instructions to banks that banks should not apply any guarantee security or margin conditions for agricultural loans up to Rs 2 lakh per borrower. This important provision will equally apply to loans for other agriculture related activities besides agriculture.

Major relaxation in property mortgage rules

The new guidelines have brought yet another relief to farmers. If the loan under KCC is taken by pledging only crops or agricultural stock, banks may exempt farmers from the condition of pledging ‘additional property’ for loans up to Rs 3 lakh.

Along with this, RBI has directed all the banks to regularly review the short-term loan limits provided for crop production and allied activities as per their credit policy and renew the same in time as per the requirement of the farmers.