Regulatory Alerts2026-06-19
Reserve Bank of India Directions on Small Finance Banks Kisan Credit Card Scheme 2026
The Reserve Bank of India issues binding directions for Small Finance Banks to implement the Kisan Credit Card Scheme, establishing a composite facility with a six-year tenure to support agricultural working capital and investment needs. The framework mandates specific eligibility criteria for farmers and allied activities, defines drawing limits based on Scale of Finance, and permits collateral-free lending up to ₹2 lakh. Additionally, the regulations standardize interest rates, require quarterly data reporting, and repeal previous circulars to streamline credit delivery through digital channels.
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