Reserve Bank Deputy Governor S S Mundra today called for increasing the credit absorption capacity of the farm sector to make agriculture-lending more sustainable. Speaking to reporters in an event in Mumbai today, Mr. Mundra said that every year, the government sets a direct agri-lending target for banks. He said the present government has set a target to double farm income by 2022. He stated that banks are also supposed to ensure 42 per cent of their overall advances is towards priority sector lending (PSL). As the overall credit growth increases, the quantum of funds going to the farm sector also goes up. He also said land reforms, investments, a full ecosystem which involves insurance schemes, value chain, distribution and supply can help in increasing the capacity of agriculture sector to absorb credit.Mr Mundra added that the Reserve Bank is deeply concerned about mis-selling of insurance products, warning that it may press for making penal provisions more stringent to deal with the problem.