Commercial banks have the highest share in the disbursement of credit to agriculture and allied activities in India.

Explanation:

1. Role of Commercial Banks in Agriculture Credit:
Commercial banks play a crucial role in providing credit to the agriculture sector in India. They are the major source of institutional credit for farmers and provide financial assistance for various agricultural activities such as crop production, livestock farming, dairy farming, and agro-processing.

2. Wide Network and Reach:
Commercial banks in India have a wide network of branches across the country, including rural and remote areas. This extensive branch network enables them to reach out to a large number of farmers and provide them with credit facilities. The presence of commercial banks in rural areas ensures that farmers have access to formal credit channels.

3. Financial Resources:
Commercial banks have substantial financial resources at their disposal, which allows them to provide adequate credit to the agriculture sector. They mobilize deposits from various sources and have access to funds from the Reserve Bank of India (RBI) and other financial institutions. These resources enable them to meet the credit requirements of farmers.

4. Expertise in Credit Assessment:
Commercial banks have well-established credit appraisal systems and expertise in assessing the creditworthiness of borrowers. They have the necessary mechanisms to evaluate the financial viability of agricultural projects and determine the loan amount, interest rate, and repayment terms. This expertise helps in mitigating credit risks and ensuring the proper utilization of funds.

5. Government Support and Priority Sector Lending:
The government of India has made agriculture a priority sector for lending by commercial banks. As per the guidelines of the RBI, banks are required to allocate a certain percentage of their total lending to the agriculture sector. This priority sector lending ensures that adequate credit is available for the development of agriculture and allied activities.

6. Technology and Innovation:
Commercial banks have embraced technology and introduced innovative solutions to enhance the delivery of agricultural credit. They use digital platforms and mobile banking services to simplify loan processing, reduce paperwork, and provide quick disbursal of funds. This technology-enabled approach makes credit accessible and convenient for farmers.

In conclusion, commercial banks have the highest share in the disbursement of credit to agriculture and allied activities in India due to their wide network, financial resources, expertise in credit assessment, government support, and technological advancements.