The Government of India, Ministry of Finance addressed Unstarred Question No. 2348 regarding waivers for Kisan Credit Card (KCC) loans. The Indian Banking Association issued an advisory on February 4, 2019, requesting member banks to waive processing, documentation, inspection, ledger folio fees, and other service charges for KCC/crop loans up to ₹3 lakhs, considering the financial hardship faced by small and marginal farmers. However, in a deregulated credit environment, banks have the discretion to make credit-related decisions, including levying charges and fees, as per their Board-approved policy subject to RBI norms. Banks decide on processing fees, inspection charges, and other charges for KCC loans according to their respective Board-approved policies and in accordance with the Master Circular on KCC scheme dated July 4, 2018, issued by RBI.
Key Entities Referenced
Kisan Credit Card (KCC): A credit scheme for farmers to avail loans for agricultural needs, subject of the waiver discussed.
Reserve Bank of India (RBI): The central bank whose prudential norms banks must follow and which issued the Master Circular.
Ministry of Finance: The government ministry responding to the question regarding the KCC loan waivers.
Indian Banking Association: The entity that issued the advisory to waive charges on KCC loans.
GOVERNMENT OF INDIA
MINISTRY OF FINANCE
DEPARTMENT OF FINANCIAL SERVICES
LOK SABHA
UNSTARRED QUESTION NO. 2348
ANSWERED ON MONDAY, DECEMBER 15, 2025/AGRAHAYANA 24, 1947 (SAKA)
Waiver for KCC loans
†2348. ADV. CHANDRA SHEKHAR:
SHRI HANUMAN BENIWAL:
Will the Minister of FINANCE be pleased to state:
(a) whether the Government is aware that the Indian Banking Association has advised
waiving processing, documentation, inspection, ledger folio fees and other service charges
for Kisan Credit Card (KCC) loans upto three lakh, keeping in view the financial hardship
faced by small and marginal farmers, if so, the details thereof;
(b) whether this advisory is being followed by banks, if so, the details thereof and if not, the
reasons therefor;
(c) whether the Government proposes to make the said advisory mandatory in the interest
of farmers and for strict compliance by the banks; and
(d) if so, the details thereof?
ANSWER
THE MINISTER OF STATE IN THE MINISTRY OF FINANCE
(SHRI PANKAJ CHAUDHARY)
(a) to (d) Indian Bank Association issued an advisory on 04 February 2019 and requested all
the member banks to waive the processing, documentation, inspection and all other service
charges for Kisan Credit Card (KCC)/crop loans upto ₹ 3 lakhs, keeping in view the hardship
of small and marginal farmers.
However, in a deregulated credit environment, banks have been accorded the discretion to take
credit related decisions, including levy of charges and fees, in terms of their Board approved
policy subject to prudential norms of Reserve Bank of India (RBI). Accordingly, banks take
decision on processing fee, inspection charges and other charges for KCC loans as per their
respective Board approved policies and in accordance with the provisions of Master Circular
on Kisan Credit Card (KCC) scheme dated 04.07.2018 issued by RBI.
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