The Indian banking system’s bad-debt level is the lowest in over a decade, but the sector’s regulator, the Reserve Bank of India (RBI), is ever vigilant. It has spotted fault-lines in unsecured retail lending. Specifically, small ticket personal loans (STPL) with ticket sizes below ₹50,000 are showing at least 2-to-3 times the delinquency levels of other retail loans. To mitigate this risk, RBI has so far focused only on lenders, which are now expected to keep higher equity levels for all unsecured consumer loans. However, RBI may have missed out on crucial stakeholders in this exercise: STPL borrowers. It is doubtful whether such loan-takers, many of whom have benefitted from financial inclusion only recently, are fully aware of the limits of their debt-servicing ability. The deluge of STPL loans made available by a subset of lenders may lead many of them to over-rate their ability. Besides, they may not be aware of the consequences of a damaged credit profile. It is here that RBI could step in with an awareness campaign. After all, it is the loose lending practices of some players that have raised the risk, and not the country’s financial inclusion drive.