business rbi expresses concerns over small finance banks mergers suggested to mitigate risks

Rbi Expresses Concerns Over Small Finance Banks: Mergers Suggested To Mitigate Risks

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The RBI has developed 'supervisory discomfort' with some small finance banks due to high concentration risks and rising asset quality stress. These banks have been advised to explore mergers to mitigate these concerns. Small finance banks with significant exposure to the microfinance sector and certain geographic areas are particularly affected.