<b>Letters:<b/> Avoid structural change

The current situation is, therefore, not propitious to initiate the proposed structural change

With reference to the report, “RBI proposes wholesale and long-term finance banks” (April 8) by Anup Roy and Abhijit Lele, the Reserve Bank of India discussion paper states that the cost of funds for these banks could be go up due to lack of access to savings and other retail deposits.

Raising long-term deposits and debt at competitive cost would not be easy and funding of long-term and infrastructure projects at higher interest costs could impact the economic viability of projects to be financed by the proposed banks. These banks could be subject to asset-liability mismatches, whereas commercial banks would have