Short Term Crop Loans eligible for Interest Subvention Scheme (ISS) and Prompt Repayment Incentive (PRI) through KCC

The Reserve Bank of India has advised banks to ensure that all short term crop loans eligible for interest subvention and prompt repayment incentive benefit are extended only through the Kisan Credit Card (KCC) with effect from April 1, 2020.

Further, the existing short term crop loans which are not extended through KCC will need to be converted to KCC loans by March 31, 2020.

Accordingly, reimbursement of interest subvention for short term crop loans through non-KCC accounts will not be considered beyond March 31, 2020, the RBI said in a circular.

For full report please click on the following link:RBI asks banks to extend farm loans eligible for subvention only via KCCs

Source: rbi circular no. RBI/2019-20/166 ; FIDD.CO.FSD.BC.No.1785/05.02.001/2019-20 dt. February 26, 2020  & Business line