In view of small and fragmented farm holdings, the population dependent upon agricultural activity will have to increasingly rely on non-farm sources of income in future. Thus, diversification towards activities such as poultry, food processing and other rural industries will be critical for the betterment of living standards in rural areas.
Unless they apprehend fully concepts underlying processes for the estimation of Probability of Default (PD), Loss given Default (LGD), Exposure at Default (EAD) and the parameters employed to calculate risk of loss based on these concepts, inadequacies will surface up since the supervisory validation process will not be up to the mark in such a case.