The Reserve Bank of India (RBI) has proposed measures that could impact credit growth, leading to concerns from the government.

One of the proposals suggests that banks allocate 5% of loans for infrastructure projects currently under construction, which has raised concerns about potential increases in funding costs for these initiatives.

Another recommendation from the RBI is for banks to maintain an extra 5% "run-off" on digitally accessible retail deposits, aiming to help banks manage risks associated with significant withdrawals through online and mobile banking platforms.

The government"s response to these regulatory changes indicates a cautious approach, highlighting the delicate balance between risk management and credit availability in the financial sector.