Why has rural banking not been able to give adequate credit to farmers?

indian-economy
cbse

#1

Rural banking has not been able to give adequate credit to farmers. This is mainly due to lack of proper infrastructure and instruments to dispense credit to needy farmers. It has also failed to develop a culture of deposit mobilisation, lending to worthwhile borrowers and effective loan recovery. Agriculture loan default rates are also high with high incidence of overdue installments by the farmers.