The Reserve Bank of India (RBI) is currently facing criticism from the government regarding its draft regulations that propose higher provisioning requirements for banks on infrastructure loans.

The government argues that these measures could potentially hinder credit growth, especially considering the challenges banks are already facing in raising deposits.

In a formal communication, the government has urged the RBI to reconsider its proposals, which would necessitate banks to allocate more capital for infrastructure financing and digital-enabled retail deposits.

This pushback highlights the ongoing tension between the central bank's regulatory approach and the government's concerns about maintaining a strong credit flow in the economy.