RBI Issues Draft Directions To Revamp Kisan Credit Card Scheme, Seeks Comments By March 6

The Reserve Bank of India (RBI) has unveiled draft directives aimed at overhauling the Kisan Credit Card (KCC) scheme, which is crucial for providing financial support to farmers. One of the key proposals is the standardization of crop seasons to establish uniform loan disbursement and repayment timelines. Under the new framework, short-duration crops are classified with a cycle of 12 months, while long-duration crops will span 18 months. This initiative is expected to streamline the lending process, enhance clarity for farmers, and ultimately improve the efficiency of credit distribution in the agriculture sector. The RBI has opened a window for stakeholder comments on these proposals, inviting feedback until March 6, 2024. This effort aligns with the government's broader objective to bolster agricultural productivity and ensure timely financial assistance to farmers, thereby contributing to rural economic development.