RBI should be flexible for WLTF banks to succeed: Bankers

If the earlier mode continues, it would be continuation of the old development finance institution

The Reserve Bank of India’s proposal to introduce wholesale and long-term finance (WLTF) banks can be a reality if the central bank and the government show flexibility on how these entities would manage their resources.
 

If the earlier mode continues, where funds are raised at a fixed rate, to finance projects at a flexible rate, it would be nothing but a continuation of the old development finance institution (DFI) model that died a natural death, say experts.
 

The Indian financial system has for long had a clear demarcation between banks and long-term finance providers. While DFIs would give project loans,