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Govt in talks with banks to cut Kisan Credit Card interest subvention by 50 basis points

Dheeraj Tiwari · Business · 2026-08-16

Govt in talks with banks to cut Kisan Credit Card interest subvention by 50 basis points

The government is discussing a 50 basis point reduction in interest subvention for Kisan Credit Card loans. This move aims to align subsidies with recent policy rate cuts by the Reserve Bank of India. Banks currently receive a 1.5% subsidy to offer loans at a 7% interest rate. Discussions are prelim... The government is discussing a 50 basis point reduction in interest subvention for Kisan Credit Card loans. This move aims to align subsidies with recent policy rate cuts by the Reserve Bank of India. Banks currently receive a 1.5% subsidy to offer loans at a 7% interest rate. Discussions

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