What changed
RBI issues directions for Small Finance Banks to provide Kisan Credit Card Scheme with a composite facility for 6 years, covering short-term credit requirements for farming and allied activities. The scheme will be applicable from January 01, 2027, for loans sanctioned under the KCC Scheme.
What it means for you
The directions aim to provide adequate and timely credit support to farmers and allied activities through a simple and standard procedure. The scheme will cover short-term credit requirements for cultivation of crops, animal husbandry, fisheries & aquaculture, and other allied activities.
What you must do
- Review and update existing KCC Scheme guidelines to align with RBI directions
- Sanction loans under the KCC Scheme with a composite facility for 6 years
- Provide adequate and timely credit support to farmers and allied activities
Who it affects
Small Finance Banks, Farmers and allied activities
What is the effective date of the RBI directions?
January 01, 2027
What activities are covered under the KCC Scheme?
Cultivation of crops, animal husbandry, fisheries & aquaculture, and other allied activities