KCC interest subvention not credited? File one RTI

The interest benefit on a Kisan Credit Card is not a discount the branch applies out of kindness. It is a reimbursement chain: your bank charges you the loan, the government compensates the bank through interest subvention, and your prompt repayment earns the extra incentive. A break anywhere in that chain — a late claim by the bank, a repayment date mis-recorded, a crop-loan booked as a term loan — shows up as missing money in your passbook. The RTI works on this page's problem precisely because every link of the chain is a dated record someone holds.

• Rate — 7 per cent per annum for short-term crop loans through KCC under MISS; effective 4 per cent for farmers who repay within the due date, via the Prompt Repayment Incentive.
• Limit — Rs 5 lakh from 1 April 2025, enhanced from Rs 3 lakh as announced in the Union Budget 2025-26.
• Collateral-free — up to Rs 2 lakh per borrower.
• Coverage — crop loans, and KCC facilities extended to fisheries and animal husbandry borrowers.
• Claims — banks file interest subvention and PRI claims to the government; PIB's releases describe an end-to-end digitised claim submission and processing system meant to cut delays. Delays nonetheless persist at the branch-to-bank link, which is exactly where your RTI points.

• Late claim filing by the branch — the commonest cause; the farmer's record is clean but the bank's claim missed a cycle.
• Repayment date mis-recorded — a deposit on the due date entered a day late costs the full 3 per cent incentive.
• Wrong loan classification — a crop loan booked as a personal or term loan drops out of the subvention net.
• Multiple KCCs across banks — the subvention attaches per borrower and per purpose; overlaps stall credits.
• Deductions netted against other dues — an insurance premium or old recovery quietly adjusted against the incentive.

Mahesh, a KCC holder in the sugarcane belt, repaid his crop loan within the season, but the passbook still showed interest at the full rate. Two visits to the branch produced sympathy, not arithmetic. His one-page RTI asked the bank for the date his account was marked repaid, the date the subvention and PRI claims for his account were filed with the government, and the reason for non-credit. The reply, inside the statutory month, admitted the claim had gone in late for that quarter. The correction and refund followed in the next cycle. The RTI did not argue about fairness; it asked for dates, and dates did the arguing.

To:
The Public Information Officer,
[Name of Bank / Regional Office], [address]

Subject: Application under section 6, RTI Act 2005 —
KCC interest subvention and PRI credit

Sir/Madam, in respect of KCC account No. [NUMBER] in the
name of [NAME], [bank and branch], crop year [KHARIF/RABI,
YEAR], kindly provide:

1. The date my loan was recorded as repaid, and the due
   date as per the sanction terms.
2. The date the Interest Subvention claim for my account
   was filed with the government, and its status.
3. The date the Prompt Repayment Incentive claim for my
   account was filed, and its status.
4. Whether my account was classified as a crop loan for
   subvention purposes; if not, the classification
   applied and the reason.
5. The reason the subvention / incentive has not been
   credited to my account, and the amount now due.
6. The grievance escalation route prescribed for
   interest subvention disputes.

Application fee of Rs. 10 paid as per rules.

Yours faithfully,
[Name, village, phone]

If the bank's reply pushes the question to the department or to NABARD, file a second, narrower application there with the bank's reply attached — the bank's own dates become the question. The Department of Agriculture and Farmers Welfare under the Ministry of Agriculture and Farmers Welfare is the scheme's owner on the government side.

7 per cent on a crop loan under MISS, and effectively 4 per cent if you repay within the due date and the incentive is applied. Anything above that on an eligible crop loan is either a mis-classification or a missing claim — both askable.

The scheme is claim-driven, so a lag of a quarter is common; an open-ended “later” is not. The RTI reply fixing the claim-filing date converts a vague answer into a measurable one, and a measurable delay into a refundable one.

The enhanced limit applies from 1 April 2025; existing limits and sanctions depend on your bank's assessment. If your branch quotes the old ceiling as a reason for anything, ask it in writing.

The bank's own grievance channel first, then the Banking Ombudsman under RBI's integrated ombudsman scheme for bank-side failures. The RTI is not a complaint — it is the evidence factory for both.

• Kisan Credit Card stuck? File one RTI to your bank
• Aadhaar update stuck? File one RTI to UIDAI
• Anganwadi services missing? File one RTI
• Atal Pension Yojana issue? File one RTI
• The RTI Playbook book — the complete drafting and appeals guide.

Last reviewed: 26 August 2026.