KCC Rules Revised: RBI issues Final Framework for All Banks

Current Context: On 19 June 2026 (Friday), the Reserve Bank of India (RBI) issued the final KCC Scheme Directions, 2026, applicable to Commercial Banks, Small Finance Banks, Regional Rural Banks, and Rural Co‑operative Banks.

• Implementation is effective from 1 January 2027, deferred after stakeholder feedback on operational and technology challenges; existing loans continue under old rules until maturity/renewal.
• Key revisions:
• Tenure: Extended to 6 years (composite facility).
• Crop Seasons: Standardised — 12 months for short‑duration crops, 18 months for long‑duration crops.
• Drawing Limits: Linked to Scale of Finance for each season.
• Coverage: Includes agri‑tech, soil testing, weather forecasting, organic certification, precision farming, and allied activities.
• Procedures: Simplified for timely, adequate, and flexible credit delivery.
• The framework aims to modernise farm credit, integrate digital monitoring & S‑100 style data standards for agri‑finance, and strengthen financial inclusion, rural resilience, and climate‑smart agriculture.

Question:

Q.1 Under the revised Kisan Credit Card (KCC) framework, the tenure of the composite credit facility has been extended to:
a) 3 years
b) 4 years
c) 5 years
d) 6 years

Answer: d) The revised framework increases the composite Kisan Credit Card (KCC) facility tenure to 6 years.