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.