The BSR is a central feature of this hallowed history. In fact, the BSR has been a silent sentinel watching over the transformation of India banking, and that is theme of my address today. 3. For India, banking services serve as the lubricant that turns the wheels of the economy.
The main reason is that most households do not borrow the maximum amount anyway so will not be constrained by the tighter standards. While the changes to lending standards have tended to reduce maximum loan sizes, this has primarily affected the riskiest borrowers who seek to borrow very close to the maximum loan size and this is a very small group.