Apropos ‘Integrating climate finance into banking regulatory framework’ (June 22), the proposal to establish the Reserve Bank Climate Risk Information System (RBCRIS) is an utmost need to strengthen risk mitigation measures while originating and delivering credit to fund economic activities. Among the factors that impact the quality of loan assets, volatile climate is a significant contributor. Therefore it is imperative to take into account and assess the risks to enable lenders to foresee the likelihood and quantum of deterioration in the quality of the loans. While calculating the Expected Credit Loss, the proposed RBCRIS will be of much help to lenders to assess the provision requirements.

VSK Pillai

Changanassery, Kerala

Monsoon woes

Apropos, ‘Monsoon worries’ (June 22). India’s monsoon has commenced under a troubling cloud, registering a 46 per cent rainfall deficit. This is not a marginal aberration but a substantial meteorological setback with far-reaching economic consequences. El Nino conditions and sluggish wind circulation have constrained precipitation, jeopardising agricultural productivity at a time when fertilizer supplies remain under pressure. The implications extend beyond farms, threatening higher food inflation, depressed rural incomes and weakened consumption demand. As climate volatility increasingly supplants historical weather patterns, policymakers must prioritise irrigation expansion, water stewardship and climate-resilient agriculture.

N Sadhasiva Reddy

Bengaluru

Inflationary paradox

This refers to ‘External sector resilience and domestic concerns’ (June 22). The RBI’s simultaneous moves to attract foreign inflows through FCNR(B) incentives and stabilise the rupee through dollar sales reflect the genuine complexity of managing external sector resilience while keeping domestic inflation contained. The West Asia stabilisation, if it holds, provides some relief on crude, but the El Nino forecast adds uncertainty on the agricultural side. A gradual approach to interest rate normalisation, combined with targeted supply-side interventions for food commodities, would help navigate this difficult combination.

SM Jeeva

Chennai

Published on June 22, 2026