Indian central bank\u2019s decision to allow a one-time restructuring of some loans to small businesses is bound to foster indiscipline among borrowers. That\u2019s the view of India Ratings and Research Pvt., a Fitch group company, on the relaxation extended to the so-called micro, small and medium enterprises. \u201cThis dispensation may encourage some of the MSME borrowers, which are otherwise operating satisfactorily, to opt for the scheme and impair the credit discipline,\u201d according to Karan Gupta, associate director at India Ratings. The relief to small businesses was Shaktikanta Das\u2019s first big policy move as Reserve Bank of India governor, and surprisingly came a day after the RBI\u2019s financial stability report warned that the sector was contributing to an outsized growth in soured loans among state-run banks. The move has been roundly criticized by most analysts, and many fear the culture of forbearance is back and could lead to more problems in India\u2019s struggling banking sector. The inherent weakness in operations of small- and medium-scale companies may still play out and manifest after the period of reprieve is over, Gupta wrote. Such relief offered in the past have not led to any material improvement in asset quality for the sector as these companies\u2019 cash flows remain under pressure, he said.