New Delhi: This news is well-nigh major changes in the Kisan Credit Card Scheme (KCC) by the Reserve Wall of India (RBI), on the typhoon of which feedback has been invited. The proposed changes aim to make the Kisan Credit Card increasingly useful, transparent, and comprehensive so that farmers can get the towardly value of loan on time.
Will the new typhoon provide largest loan coverage to farmers?
RBI has proposed to modernize the coverage and operations of the Kisan Credit Card in its typhoon guidelines. Under this, it is suggested to fix the loan withdrawal limit as per the unscientific forfeit of the yield so that the farmer can get sufficient money as per the very need. This is expected to reduce the problem of inadequate credit to a unconfined extent.
How can the loan tenure change?
The proposed typhoon moreover includes a plan to standardize yield rotations. Equal to this, 12-month cycles have been stock-still for quick-maturing crops and 18-month cycles for long-duration crops. Accordingly, it is now proposed to increase the total tenure of KCC to six years, which will provide flexibility in loan repayment to farmers with long yield cycles and will reduce the pressure of timely repayment.
What will be the impact on the loan limit?
The typhoon guidelines propose that the loan limit for farmers under KCC should be decided equal to the crop-specific cost. This ways that now this limit will not just be a unstipulated limit stock-still by the wall but will be stock-still equal to each yield and its cost. This will make it easier for farmers to get loans as per their very financial needs.
Will technical and research expenses moreover be included?
RBI is moreover suggesting to include technical consumption in the list of loanable expenses in the proposed draft. This will moreover include financing related to soil testing, weather forecasting, certification of organic/good agricultural practices, etc. This will help farmers prefer wide agricultural techniques and increase agricultural production capacity.
Who has sought feedback and suggestions?
RBI has prepared typhoon guidelines and sought comments from banks, farmers, financial institutions, and other stakeholders by March 6, 2026. Final changes will be made based on these suggestions. The typhoon will be workable to all major banks and rural financial institutions. Earlier, in the Monetary Policy Week, RBI had moreover expressed the need for reforms in the agricultural sector.
These proposed changes are stuff considered as a step taken to modernize and make farmer-friendly the structure of the three-decade-old Kisan Credit Card Scheme. If these changes are implemented, the KCC scheme may prove to be increasingly constructive in providing timely and unobjectionable loans to the farmers as per their needs.
