This refers to ‘A ratings tweak that could enhance bank credit’ (April 21). Existing rating risk mappings tend to assign relatively high risk weights to moderately rated firms, which forces lenders to hold more capital against such exposures and in turn making these lending less attractive. The RBI’s proposal could be a meaningful step to correct this imbalance. By aligning risk weights more closely with actual credit risk, banks may find it easier to lend to MSMEs and credit flow to that sector will improve. This will significantly help create more employment and grow our export sector. However, while implementing this proposal, risk should not be underestimated as this would compromise financial stability.

Bal Govind

Noida

Credit flow to micro units

The proposed downsizing of the risk capital provisions from 150 per cent to 100 per cent for the BB rating category is a laudable step. Credit rating, apart from providing the pre-sanction guidance, acts as an analytical tool assisting the lending banks in revision of lending rates annually and to watch any incipient sickness of the borrower companies. However, with inadequate financial literacy rate and inability to mobilise the business resources with ease, how many of these micro entities attain the minimum credit rating to meet the lending norms would be a moot question.

Sitaram Popuri

Bengaluru

Security risk

Apropos ‘Snooping around’ (April 21), the revelation that hostile entities can access Indian CCTV feeds through compromised software is a stark reminder of how national security is entwined with everyday technology. Reliance on imported systems without rigorous testing has left critical sites vulnerable, and the risks extend beyond espionage to public trust in surveillance itself. The solution lies in building secure, indigenous ecosystems backed by strict certification and enforcement. Developing domestic manufacturing capacity, auditing third-party providers, and mandating compliance are not luxuries but necessities. Security cannot be outsourced when sovereignty is at stake. India must treat surveillance infrastructure as strategic, ensuring that vigilance is not undermined by negligence, and that technology serves as a shield rather than a Trojan horse.

K Chidanand Kumar

Bengaluru

SBI’s growth target

This refers to ‘SBI targets balance-sheet size of 25% of India’s GDP by 2030’ (April 21). The ambition is understandable for an institution of SBI’s scale, but balance-sheet size alone is a blunt measure of success. What matters equally is the quality of that growth — credit discipline, NPA management, and whether expansion into 800 districts translates into genuine financial inclusion or simply deposit mobilisation. The district-level bottom-up approach is encouraging if implemented with adequate local expertise. But as SBI grows closer to global bank scale, its governance standards and risk management frameworks must keep pace with that ambition.

M Barathi

Bengaluru

Published on April 21, 2026