Another, regulatory relaxation available to the small banks is in terms of provisioning requirement for 'standard advances' which has recently been enhanced for UCBs from 0.25% to 0.40%, but this enhancement has not been made applicable to banks having deposits below Rs.100 crore and whose operations are confined to a single district.
Further, foreign investors are not shy of investing in rupee debts even in overseas locations, as the experience of IFC and ADB issues last year show. There is a need to appropriately incentivise the move away from foreign currency debts to Rupee debts even as the position  6  BIS central bankers’ speeches  in respect of overall indebtedness in prudentially managed.