RBI Issues New Draft Guidelines for Kisan Credit Card
Reserve Bank of India Releases Draft Rules to Improve Kisan Credit Card Scheme: There is good news for millions of farmers in the country. The Reserve Bank of India (RBI) has released new draft guidelines to make the Kisan Credit Card (KCC) scheme more useful and farmer-friendly. The RBI has invited suggestions on these draft rules until March 6.
Loan Tenure Based on Crop Cycle: RBI has proposed fixing the loan period according to the crop cycle. Short-term crops will have a 12-month cycle, while long-term crops will have an 18-month cycle. This will make repayment easier and more flexible for farmers.
KCC Validity May Be Extended to 6 Years: The draft suggests increasing the KCC validity to 6 years. This means farmers will not need to complete paperwork again and again. The credit limit may also increase by about 10% every year to match rising farming costs.
Technical Costs to Be Included: Expenses like soil testing, weather information, and organic farming can now be included in KCC loans. These costs will be covered under the extra 20% loan amount allowed for farming needs.
Big Relief for Farmers: Experts say these changes will especially help small and marginal farmers. With simpler rules and easier access to loans, more farmers will be able to benefit from the KCC scheme.
