With reference to Anup Roy and Abhijit Lele’s report, “RBI proposes wholesale long-term finance banks” (April 8), what ails gestating projects such as those in infrastructure is the unavailability of long-term finance besides delays in clearance from government agencies.
Even banks, which lend money to such projects, do it from their short-term deposits, thus creating an asset liability mismatch. Against this backdrop, the Reserve Bank of India’s proposal for a wholesale and long-term finance bank to cater to such needs is welcome.
Even more heartening is the strong entry barrier the regulator has proposed. The minimum capital requirement of Rs 1,000 crore
