In this regard, it is useful to note the nature of competition and accountability to shareholders governing the functioning of commercial banks which would make their foray into rural credit predominantly subject to commercial considerations. The changes warranted in cooperatives as well as RRBs involve deep commitment of state-governments and have significant bearing on political economy.
But history may not view that decision kindly; after LIBOR stops, it may be fairly difficult to explain to those who may ask exactly why it made sense to continue using a rate that you had been clearly informed had such significant risks attached to it.