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The typical bank manager of a public sector bank has a two- to three-year tenure at a particular branch and is also shifted across activities like foreign exchange, administration, agricultural finance, personal banking, training, industrial lending etc. This is all the more true of such small and micro business activities where there are significant fluctuations in the cash flows within short periods of time. Hence, the ability to assess the market as well as keep track of daily changes is paramount in lending for these activities. Studies suggest that more than 60% of the time of a public sector bank manager is spent on personnel- and depositor-related issues at the branch. In such a situation it becomes difficult for the manager of a public sector bank to lend, based on cash flows since this requires constant and continuous monitoring of market changes with a reliable database, which alone would give them a strong feel of local conditions and profiles of borrowers. In other words, risk assessment capabilities are not adequate. The best solution to integrate our markets is to have a concentric circle of lenders and obviously each will have margin and operating expenses. Also, the computation of interest rates is linked to ones time horizon or period of planning. If my flower girl borrows at say half per cent per day it should not be looked upon as 180 % per annum since her time horizon is different. One should not telescopically enlarge rates since time horizons of small businesses are different. RBI has formulated policies for UIBs (unincorporated bodies like money lenders) wherein they can lend but not borrow money and in the process made many of them go underground and operate. Let the government not meddle with the MFIs in terms of Nehruvian legacy of capping interest rates and strangle that business. The old saying that if any activity is successful then government cannot tolerate it hopefully is not repeated in the case of MFIs.