Cracks in the economy: Too much easing of loans could be a hidden peril in India's growth story

Sanjay Malhotra, the new Reserve Bank of India governor, is easing strict controls on consumer credit to boost economic growth. Banks will soon set aside less capital for loans to better-rated nonbank financial firms and microfinance loans. This move aims to revive slowing GDP but requires caution to avoid potential risks from increasing subprime loans.