Overview The Ministry of Finance announced a suite of measures to broaden the reach of the Kisan Credit Card (KCC) and to digitise its issuance across all States and Union Territories. The steps target small and marginal farmers, enhance credit accessibility, and strengthen grievance redressal mechanisms. Key Developments Priority Sector Lending (PSL) framework : Under the PSL guidelines, banks must allocate at least 18% of ANBC/CEOBSE to agriculture, with a sub‑target of 10% for Small and Marginal Farmers (SMFs) . Incentive‑disincentive mechanisms are in place for districts based on credit flow. Since 2019 , KCC coverage has been extended to working‑capital needs of animal husbandry, dairying and fisheries . The Modified Interest Subvention Scheme (MISS) provides loans at 7% interest ; prompt repayment fetches an additional 3% incentive , effectively reducing the rate to 4% . RBI raised the collateral‑free loan ceiling from ₹1.60 lakh to ₹2.00 lakh per borrower (effective 01 Jan 2025), benefitting over 86% of farmers who lack collateral. Financial literacy drives are conducted by the Union/State Governments, RBI, NABARD and banks through the Centre for Financial Literacy (CFL) , Financial Literacy Camps (FLCs) and the annual Financial Literacy Week . Digital platforms: the Jan Samarth portal and NABARD’s e‑KCC portal enable online KCC applications, reducing paperwork and branch visits. Bank‑level mobile apps and online portals now support end‑to‑end digital processing of KCC applications. Important Facts on Grievance Redressal Banks must follow the <span class="key-term" data-definition="Reserve Bank of India — India's central bank responsible for monetary policy, currency regulation, and financial stabil