Kisan Credit Card Draft Norms: Agri-Tech Costs and 6-Year Tenure
Why in the news
RBI floated revised KCC draft rules to expand farm credit and encourage modern practices.
Proposals
| Area | Draft position |
|---|---|
| Agri-tech costs | Soil testing, real-time weather tools, organic or good-practice certification, inside the existing 20% additional component |
| Collateral | None, with no margin, up to ₹2 lakh |
| Crop loan cycle | 12 months short-duration; 18 months long-duration |
| Tenure | 6 years |
| Limits | Linked to scale of finance per season |
| Flexi-KCC | ₹10,000-₹50,000 for marginal farmers |
Objectives
- Technology adoption, institutional credit access, and loans matching real farming costs.
- Support for small and marginal farmers.
Exam angle
- Collateral-free ceiling: ₹2 lakh.
- Flexi-KCC meets working capital and investment needs.