RBI highlights regional disparities in agricultural lending despite record credit surge

Regional disparities in lending to agriculture remain a concern even as institutional credit to agriculture reached an all-time high, Reserve Bank of India deputy governor Swaminathan J said.

“A concerted focus on addressing regional imbalances, enhancing credit access, and integrating value chain financing is crucial for a more sustainable and resilient future for Indian agriculture,” the central banker said last week in Pune at an international research conference hosted by the College of Agricultural Banking.

The RBI published a copy of the speech on its website Monday.

Institutional credit to agriculture reached an all-time high of Rs 25.10 lakh crore during 2023-24 through around 7.4 crore active Kisan Credit Cards, which are vital tools for short-term credit delivery.

“Going forward, two critical issues must be addressed: promoting sustainable agriculture and ensuring adequate funding for it,” Swaminathan said in his keynote address at the event. “Sustainable finance should not only promote environmentally friendly practices but also ensure that financial resources are available to the farmers who need them most, providing equitable access to tools, technology, and knowledge.”