What changed
RBI replaced the 2004 Revised Model KCC Scheme with a new version based on a Working Group led by Indian Bank's CMD. The revision aims to simplify procedures, align with current needs, and facilitate issuance of electronic Kisan Credit Cards.
What it means for you
Banks must update their KCC product documentation, credit assessment methods, and card issuance processes to comply with the revised scheme. The move supports digitalization of agricultural credit and may require system changes for e-KCC issuance.
What you must do
- Implement the revised KCC scheme across all branches immediately.
- Update internal credit assessment templates and limit calculation methods as per the new illustrations.
- Prepare for electronic Kisan Credit Card issuance by upgrading IT systems and vendor agreements.
- Train field staff on the simplified procedures and new limit assessment guidelines.
Who it affects
All scheduled commercial banks (excluding RRBs), Agricultural lending departments, Branch managers handling KCC accounts, IT teams managing card issuance systems
What is the effective date for implementing the revised KCC scheme?
The circular is dated May 11, 2012, and banks are advised to implement it immediately. No specific transition period is mentioned.
Does this apply to Regional Rural Banks (RRBs)?
No, the circular explicitly excludes RRBs from its scope. It applies only to all scheduled commercial banks.
Where can we find the detailed scheme and limit illustrations?
The revised scheme and assessment illustrations are enclosed as an annex to the circular. Banks should refer to that annex for full details.