Current · Source: Reserve Bank of India · RBI/2011-12/553 · issued 11 May 2012 · ~1 min read
Quick answerRBI issued a revised KCC scheme based on the T.M. Bhasin Working Group recommendations, simplifying and modernizing the product for electronic cards. All scheduled commercial banks (excluding RRBs) must implement the new scheme immediately.
The rule, in the simplest words
Banks must use the new Kisan Credit Card (KCC) scheme right away, replacing the old 2004 rules.
The new scheme makes it easier to give farmers an electronic Kisan Credit Card (a card for farm loans).
Banks have to change how they figure out loan limits (how much money a farmer can borrow) using new examples from RBI.
All scheduled commercial banks (big banks that follow RBI rules) except RRBs (small rural banks) must follow this.
How it plays out — a real example
An agri & priority-sector lending officer in Indore updates the bank's KCC application forms and loan limit calculator to match the new RBI illustrations, then trains her team to issue electronic Kisan Credit Cards to farmers instead of paper cards, making the process faster and simpler for everyone.
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
❓ Common questions
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.
📜 Read the original circular — full text as issued by RBI
RBI/2011-12/553
RPCD.FSD.BC.No. 77/05.05.09/2011-12
May 11, 2012
The Chairman and Managing Director/CEOs,
All Scheduled Commercial Banks,
(Excluding RRBs)
Madam / Dear Sir,
Revised Kisan Credit Card (KCC) Scheme
Please refer to our circular RPCD.PLFS.BC.No.38/05.05.09/2004-05 dated October 4, 2004 advising you to implement the Revised Model KCC Scheme.
2. With a view to simplify and attune the Scheme to suit to current requirements and to facilitate issue of Electronic Kisan Credit Cards, a Working Group under the Chairmanship of Shri T.M.Bhasin, Chairman and Managing Director, Indian Bank was constituted. The Working Group has since submitted its recommendations based on which a revised Kisan Credit Card (KCC) Scheme has been devised.
3. The revised Kisan Credit Card Scheme together with illustrations on assessment of KCC limits are enclosed in Annex .
4. All banks are advised to implement the revised Kisan Credit Card (KCC) Scheme.
Yours faithfully,
(C.D.Srinivasan)
Chief General Manager,
Encl: as above
Reproduced for reference with acknowledgment — Source: Reserve Bank of India · RBI/2011-12/553 · issued 11 May 2012. The plain-English explanation above is BankPulse’s own independent summary.
Implement the revised KCC scheme across all branches immediately.
💻 IT / Systems
Prepare for electronic Kisan Credit Card issuance by upgrading IT systems and vendor agreements.
📜 Compliance
Update internal credit assessment templates and limit calculation methods as per the new illustrations.
Train field staff on the simplified procedures and new limit assessment guidelines.
Grouped from the action items above — a single circular may involve more than one team.
Worked example & action-note template
Example: if you are a Branch Manager at a bank this circular applies to (All scheduled commercial banks (excluding RRBs), Agricultural lending departments, Branch managers handling KCC accounts, IT teams managing card issuance systems), your first concrete step on “Revised Kisan Credit Card Scheme 2012” is: “Implement the revised KCC scheme across all branches immediately.” (RBI issued this 11 May 2012).
Action required: Implement the revised KCC scheme across all branches immediately.
Action required: Update internal credit assessment templates and limit calculation methods as per the new illustrations.
Action required: Prepare for electronic Kisan Credit Card issuance by upgrading IT systems and vendor agreements.
Action required: Train field staff on the simplified procedures and new limit assessment guidelines.
Owner: ____________ Target date: ____________
Board/committee approval needed? Y / N
Evidence filed in compliance register on: ____________
Built only from this circular’s own published fields — not legal advice; always confirm against the official RBI source.
💬 Banker Discussion
Discuss this circular with fellow bankers — reply, upvote what helps, report what doesn’t belong. Be professional; no client data. Views are the commenter’s own, not BankPulse’s.
BankPulse Compliance Evidence Pack — generated 03 Aug 2026 · status cross-checked against RBI’s official withdrawal register (refreshed weekly). Official RBI source: https://www.rbi.org.in/Scripts/NotificationUser.aspx?Id=7204&Mode=0 — Plain-English summary by BankPulse (bankpulse.ai), reviewed by our expert reviewer, CA Amit Jain. Independent platform, not affiliated with the Reserve Bank of India; is our own plain-English paraphrase, not RBI’s original wording.
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