Farm credit: Round-trip accounts

The latest Reserve Bank of India (RBI) data showing robust growth of nearly 20 per cent in agricultural credit this year, even as lending to industry and services has tended to lag, are unsurprising. Some of it is due to progressively higher annual targets for farm credit, and growing pressure on banks to meet them; much of it could also be attributed to the diversion of subsidised farm loans to other end-uses.

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