Is agriculture credit being used for the right purpose? RBI questions

Points to data showing its diversion and uneven distribution across many states

Is farm credit going into the right hands? Well, the country’s apex bank has questioned it.

In the latest report of its Internal Working Group to review agricultural credit, the Reserve Bank of India (RBI) says it found that in some states, credit disbursal to the farm sector was higher than their agricultural gross domestic (GDP) product.

So, indicating the possibility of diversion of credit for non-agricultural purposes. Kerala, Tamil Nadu, Telangana, Karnataka and Punjab came in this category.

In Kerala and Tamil Nadu, according to the report, agricultural credit was almost 180 per cent more than the average agriculture GDP of the