The proposed guidelines include standardization of crop season, extension of KCC term to six years (from five years), alignment of draw limit with scale of financing (SoF) for each crop season and inclusion of expenditure on technological interventions, said RBI Governor Sanjay Malhotra | Photo credit: SHASHNK PARADE
The proposed guidelines include standardization of crop season, extension of KCC term to six years (from five years), alignment of draw limit with scale of financing (SoF) for each crop season and inclusion of expenditure on technology interventions, RBI Governor Sanjay Malhotra said. In this regard, draft guidelines will be published shortly.
The Governor noted that the RBI has extensively reviewed the KCC scheme with a view to expanding coverage, streamlining operational aspects and addressing emerging requirements.
Introduced in 1998, the KCC program addresses the financial needs of farmers at different stages of farming. The scheme provides support for cultivation and post-harvest activities, marketing loans, household consumption needs, working capital for agricultural assets and investment credits for related activities.
According to SBI’s website, collateral is waived for a KCC limit up to ₹2 lakh and up to ₹3 lakh in case of a tie-up agreement. Further, there is an interest subvention of 3 percent as a quick repayment incentive of up to ₹3 lakh.
Published on February 6, 2026
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