New Student Offer - HELLO

Join Here

RBI Revises Norms for Banks on Short Term Crop Loan Under KCC

Published on May 12, 2022
Current Context: RBI modified norms for banks to claim the amount of interest subvention provided to farmers under the short-term crop loan scheme through the Kisan Credit Card (KCC) during the last fiscal.
RBI Revises Norms for Banks on Short Term Crop Loan Under KCC
  • Pending claims for the fiscal year 2021-22 can be submitted by June 30, 2023, and they must be duly certified by statutory auditors whether it is true or false.
  • Kisan Credit Card:
    • KCC Scheme was first introduced in 1998 for providing timely credit support from banking, further extended for investment credit requirements of farmers in allied and non-farm activities in the year 2004.
    • Minimum paperwork and simplification of documentation for withdrawal of funds from the bank.
    • Flexibility to draw cash and buy inputs.
    • Assured availability of credit at any time enabling reduced interest burden for the farmer.
    • It also covers post-harvest expenses, consumption requirements of farmer households, farm assets, agriculture, and allied activities.
  • Interest Subvention Scheme
    • It aims to provide short-term crop loans up to 3 lakh to farmers at a 7% annual interest rate.
    • PSBs and Private sector commercial banks offer interest subvention of 2 percent by the government.
    • The policy came into force with effect from 2006-07.
    • It is implemented by NABARD and SEBI.
  • Present Governor of RBI: Shri Shaktikanta Das-25th Governor of RBI.


Q.1 Kisan credit card scheme is implemented by?
a. RRB’s
b. State Co-operative
c. Commercial Banks
d. Small Finance bank
e. All of the above
ebook store

About us

ramandeep singh

Ramandeep Singh, your guide to banking and insurance exams. With 14 years of experience and 5000+ selections, Ramandeep understands the path to success, having transitioned himself from Dena Bank and SBI. He's passionate about helping you achieve your banking and insurance dreams.

  • Follow me:
Close Menu
Close Menu