RBI caution on the retail growth of the banking system, What do you make of that?

• Quality lending should be clear focus of financial Institutions. Building an Unsecured and Retail loan book is easy, but significant challenges may arise if the book is not built carefully.
• Numerous new players are entering the market including New-to-Bank (NTB) segment for Personal Loans who extend credit based on track record of customer behavior. They are solely relying on the credit score, which reflects past performance.
• During turbulent times when there is headwind as well as tailwinds, there is a level of uncertainty, and this may have prompted this RBI advisory to make the banks a bit more conservative in their approach.