The RBI has issued the 'Kisan Credit Card (KCC) Scheme' directions for small finance banks, enhancing the accessibility of credit for farmers in this sector.
Reserve Bank of India Issues KCC Scheme Directions for Small Finance Banks
The Reserve Bank of India (RBI) has introduced the 'Kisan Credit Card (KCC) Scheme' Directions, 2026 specifically for small finance banks, published on June 19, 2026. This initiative aims to strengthen credit availability for farmers, particularly through smaller banking institutions.
The directions include chapters detailing the credit purpose, tenure, limits, and provide essential general instructions along with disclosure and repeal provisions. This structured approach aims to create a reliable framework for assisting farmers with their financial needs.
The issuance of these directions demonstrates the RBI's proactive approach in promoting agricultural financing and supporting the operational viability of small finance banks in catering to the agricultural sector.
Legal practitioners should guide their clients in small finance banks to comprehend and implement these new directives effectively to improve compliance and operational efficiency.
Citations
- RBI Directions (2026) RBI/FIDD/2026-27/403
