Role of RBI in agricultural credit:
1. RBI has been playing a very vital role in the provision of agricultural finance in the country.
2. The Bank’s responsibility in this field had been increased due to the predominance of agriculture in the Indian economy and the inadequacy of the formal agencies to cater to the huge requirements of the sector.
3. In order to fulfill this important role effectively,the RBI set up a separate Agriculture Credit Department.
4. However, the volume of informal loans has not declined sufficiently.