MUMBAI: The Reserve Bank has issued revised Kisan Credit Card (KCC) guidelines, consolidating the extant ones on agriculture and allied activities, with a view to expand coverage, streamline operational aspects and address emerging requirements.
The new norms are aimed at bringing in uniformity in loan sanction and repayment schedules, crop seasons have been standardized in terms of months--- with short duration crops (12months) and long duration crops (18 months), the RBI said Thursday.
“To ensure proper dovetailing of loan tenure with crop seasons especially for the longer duration crops, the tenure of KCC has been extended to six years,” the central bank said.
This is to ensure that farmers receive adequate credit based on actual cost of cultivation, drawing limits under KCC has been aligned with the scale of finance for each crop season, it said.
“To enable farmers to access finance for technological interventions such as soil testing, real time weather forecasts and organic/good agricultural practices certification etc, such expenses has been added as eligible components within 20% additional component towards repairs and maintenance of farm assets,” it said.
The new norms are applicable to commercial banks, small finance banks, regional rural banks, and rural co-operative banks.
The regulator has sought public comments by March 6.