Income Diversion Indicator points to the possibility that the borrower’s revenue is not being routed through the expected bank account or business channel. In MSME lending, lenders often rely on account turnover, GST filings, and cash-flow credits to understand business performance and repayment capacity. If sales are collected in another bank, personal account, cash mode, or group entity, the assessed cash flow may be incomplete and monitoring becomes weak. For example, a borrower may show GST sales but limited credits in the operating account where the facility is maintained. This matters because diverted income can affect repayment visibility, drawing-power assessment, and covenant compliance. The caution is to verify the reason before concluding misconduct; seasonal collections, multiple accounts, payment gateways, or escrow arrangements may explain the pattern.